PSI Property and Casualty Practice Test - California Questions with Detailed Verified Answers

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PSI Property and Casualty Practice
Test - California Questions with
Detailed Verified Answers

Question: 1. How does an "admitted" person differ from a "non-admitted"
person, as it pertains to insurance?


Ans: o An "admitted" person has the right to transact insurance business
within the state, while a "non-admitted" person is not entitled to this action.


Question: 2. A claimant can be any of the following EXCEPT?


Ans: o a person who is conducting an investigation of a claim on behalf of an
insurer.


Question: 3. When should an insurer provide for the continuous operation of
a unit or division to investigate possible fraudulent claims?


Ans: o If admitted to do business in this state, except those otherwise
exempted.


Question: According to CIC Section 1711, an organization ceases to exist as an
entity eligible to hold a license EXCEPT?


Ans: o Upon the termination of all contracts

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Question: 5. All of the following define insolvency EXCEPT?


Ans: o revocation of certificate of authority by the commissioner.


Question: 6. As used in the insurance code, the word "shall" is mandatory and
the word "may" is permissive EXCEPT?


Ans: o unless otherwise apparent from the context.


Question: 7. Which of the following terms refers to any evidence or
documentation in the possession of the insurer that provides any evidence of a
claim and that reasonably supports the magnitude or the amount of the
claimant loss?


Ans: o Poof of claim


Question: 8. When examination of an insurer shows the insurer to be
insolvent and a danger to the public, which authority is granted to the
Commissioner by the CIC?


Ans: o The commissioner may take possession of offices, books and property
immediately without court order.


Question: 9. An insurance agent is a person who transacts all of the following
types of insurance EXCEPT


Ans: o Life insurance

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Question: 10. Which of the following is TRUE regarding continuing education
requirements of an agent or broker?


Ans: o Any licensee shall satisfactorily complete 24 hours of instruction prior
to license renewal.


Question: 11. All of the following are included as definitions of "transact" as
applied to insurance EXCEPT?


Ans: o Underwriting


Question: 12. Which group of people is offered additional protection by the
Unfair Practices Act that regulates trade practices in the business of
insurance?


Ans: o Survivors of the Holocaust


Question: 13. Which of the following can the insurer do if the insured
intentionally conceals or misrepresents a material fact concerning any
coverage part?


Ans: o Rescind the contract


Question: 14. While both work with an insurer, how does an "Insurance
broker" differ from an "insurance agent"?


Ans: o The broker does not transact on behalf of an insurer, while the agent
does.