PSI CA Property and Casualty Practice
Examination Exam Questions and
Answers (Solved Papers)
1 Can a lender, as a condition of making a loan, require that
any insurance be placed through a particular insurance agent
or broker? - Correct Answers ✅The loan recipient may
always select a particular agent or broker of their choosing
2 A claimant can be any of the following EXCEPT - Correct
Answers ✅EXCEPT a person who is conducting an
investigation of a claim on behalf of an insurer
3 All of the following are to be specified in an insurance policy
EXCEPT - Correct Answers ✅EXCEPT the financial rating of
the insured
4 Which of the following provisions of free insurance offered
as an incentive to purchase or rent property is TRUE? -
Correct Answers ✅It requires a separate charge or fee
5 What is the method used for placing business with the
California Automobile Assigned Risk Program? - Correct
Answers ✅The percentage of CAARP policies required is
equal to the percentage of regular insurance policies the
insurer has issued within the State
6 Whether admitted or nonadmitted, how does a "foreign"
insurer differ from an "alien" or "domestic" insurer? - Correct
, PSI CA Property and Casualty Practice
Examination Exam Questions and
Answers (Solved Papers)
Answers ✅A "foreign" insurer is organized under the laws of
another state within the United States
7 All of the following are reasons employers liability insurance
is needed in addition to workers' compensation insurance
EXCEPT - Correct Answers ✅EXCEPT to pay medical bills
8 What is the purpose of the experience modification system
in the California workers' compensation experience rating
system? - Correct Answers ✅It expresses a particular
company's loss or claims history as a percentage to all other
companies in the industry
9 Which form of negotiation is covered under the definition of
"transact" as applied to insurance? - Correct Answers
✅Negotiations preliminary to execution
10 Which type of coverage protects against loss caused by
earth movement? - Correct Answers ✅A stand-alone
Earthquake Insurance policy specifically insuring against loss
caused by land subsidence
11 Which circumstances in a pretext interview determine if
the questions are permissible? - Correct Answers ✅When
an insured is consulted by a person who hides his true
identity on purpose when fraud for a claim is suspected
Examination Exam Questions and
Answers (Solved Papers)
1 Can a lender, as a condition of making a loan, require that
any insurance be placed through a particular insurance agent
or broker? - Correct Answers ✅The loan recipient may
always select a particular agent or broker of their choosing
2 A claimant can be any of the following EXCEPT - Correct
Answers ✅EXCEPT a person who is conducting an
investigation of a claim on behalf of an insurer
3 All of the following are to be specified in an insurance policy
EXCEPT - Correct Answers ✅EXCEPT the financial rating of
the insured
4 Which of the following provisions of free insurance offered
as an incentive to purchase or rent property is TRUE? -
Correct Answers ✅It requires a separate charge or fee
5 What is the method used for placing business with the
California Automobile Assigned Risk Program? - Correct
Answers ✅The percentage of CAARP policies required is
equal to the percentage of regular insurance policies the
insurer has issued within the State
6 Whether admitted or nonadmitted, how does a "foreign"
insurer differ from an "alien" or "domestic" insurer? - Correct
, PSI CA Property and Casualty Practice
Examination Exam Questions and
Answers (Solved Papers)
Answers ✅A "foreign" insurer is organized under the laws of
another state within the United States
7 All of the following are reasons employers liability insurance
is needed in addition to workers' compensation insurance
EXCEPT - Correct Answers ✅EXCEPT to pay medical bills
8 What is the purpose of the experience modification system
in the California workers' compensation experience rating
system? - Correct Answers ✅It expresses a particular
company's loss or claims history as a percentage to all other
companies in the industry
9 Which form of negotiation is covered under the definition of
"transact" as applied to insurance? - Correct Answers
✅Negotiations preliminary to execution
10 Which type of coverage protects against loss caused by
earth movement? - Correct Answers ✅A stand-alone
Earthquake Insurance policy specifically insuring against loss
caused by land subsidence
11 Which circumstances in a pretext interview determine if
the questions are permissible? - Correct Answers ✅When
an insured is consulted by a person who hides his true
identity on purpose when fraud for a claim is suspected
