PSI Property and Casualty Prac ce Test – California
EAXM QUESTIONS AND ANSWERS NEWEST 100%
VERIFIED CORRECT 2025/2026
1. How does an "admi ed" person differ from a "non-admi ed" person, as it pertains to
insurance? - Answers o An "admi ed" person has the right to transact insurance business
within the state, while a "non-admi ed" person is not en tled to this ac on.
2. A claimant can be any of the following EXCEPT? - Answers o a person who is conduc ng an
inves ga on of a claim on behalf of an insurer.
3. When should an insurer provide for the con nuous opera on of a unit or division to
inves gate possible fraudulent claims? - Answers o If admi ed to do business in this state,
except those otherwise exempted.
According to CIC Sec on 1711, an organiza on ceases to exist as an en ty eligible to hold a
license EXCEPT? - Answers o Upon the termina on of all contracts
5. All of the following define insolvency EXCEPT? - Answers o revoca on of cer ficate of
authority by the commissioner.
6. As used in the insurance code, the word "shall" is mandatory and the word "may" is
permissive EXCEPT? - Answers o unless otherwise apparent from the context.
7. Which of the following terms refers to any evidence or documenta on 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? - Answers o Poof of claim
8. When examina on 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? - Answers o The
,commissioner may take possession of offices, books and property immediately without court
order.
9. An insurance agent is a person who transacts all of the following types of insurance EXCEPT -
Answers o Life insurance
10. Which of the following is TRUE regarding con nuing educa on requirements of an agent or
broker? - Answers o Any licensee shall sa sfactorily complete 24 hours of instruc on prior to
license renewal.
11. All of the following are included as defini ons of "transact" as applied to insurance EXCEPT?
- Answers o Underwri ng
12. Which group of people is offered addi onal protec on by the Unfair Prac ces Act that
regulates trade prac ces in the business of insurance? - Answers o Survivors of the Holocaust
13. Which of the following can the insurer do if the insured inten onally conceals or
misrepresents a material fact concerning any coverage part? - Answers o Rescind the contract
14. While both work with an insurer, how does an "Insurance broker" differ from an "insurance
agent"? - Answers o The broker does not transact on behalf of an insurer, while the agent
does.
15. How can a licensee surrender any license for cancella on? - Answers o By submi=ng
wri en no ce or by delivering the license to the commissioner
16. The following are all penal es for unlawfully ac ng as an insurer without a cer ficate of
authority EXCEPT? - Answers The individual will be banned from prac cing insurance for a
period of 5 years
, 17. Materiality to be solely determined by which of the following? - Answers o The probable
and reasonable influence of the facts upon the party to whom the communica on is due
18. What is a solicitor employed to do for a policy other than life? - Answers To aid a property
and casualty agent or broker in transac ng insurance.
19. ALL of the following are TRUE regarding the process to change the California Code of
Regula ons EXCEPT? - Answers o the Office of Administra ve Law (OAL) may subs tute its
own judgment for that of the rulemaking agency.
20. How may a license be surrendered by the insuree, or terminated by the employer? -
Answers o Personally, delivering the license to the insurance commissioner, or by wri en
no ce from the employer.
21. All of the following are to be specified in an insurance policy EXCEPT? - Answers o The
financial ra ng of the insured
22. When may a representa on be altered or withdrawn? - Answers o Before the insurance is
effected.
23. Which of the following provisions of free insurance offered as an incen ve to purchase or
rent property is TRUE? - Answers o It requires a separate charge or fee.
24. Which circumstances in a pretext interview determine if the ques ons are permissible? -
Answers o When an insured is consulted by a person who hides his true iden ty on purpose
when fraud for a claim is suspected.
25. All of the following are examples of misrepresenta ons that may not be made by an insurer,
officer or agent thereof or an insurance broker or solicitor EXCEPT - Answers o the specific
contract language.
EAXM QUESTIONS AND ANSWERS NEWEST 100%
VERIFIED CORRECT 2025/2026
1. How does an "admi ed" person differ from a "non-admi ed" person, as it pertains to
insurance? - Answers o An "admi ed" person has the right to transact insurance business
within the state, while a "non-admi ed" person is not en tled to this ac on.
2. A claimant can be any of the following EXCEPT? - Answers o a person who is conduc ng an
inves ga on of a claim on behalf of an insurer.
3. When should an insurer provide for the con nuous opera on of a unit or division to
inves gate possible fraudulent claims? - Answers o If admi ed to do business in this state,
except those otherwise exempted.
According to CIC Sec on 1711, an organiza on ceases to exist as an en ty eligible to hold a
license EXCEPT? - Answers o Upon the termina on of all contracts
5. All of the following define insolvency EXCEPT? - Answers o revoca on of cer ficate of
authority by the commissioner.
6. As used in the insurance code, the word "shall" is mandatory and the word "may" is
permissive EXCEPT? - Answers o unless otherwise apparent from the context.
7. Which of the following terms refers to any evidence or documenta on 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? - Answers o Poof of claim
8. When examina on 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? - Answers o The
,commissioner may take possession of offices, books and property immediately without court
order.
9. An insurance agent is a person who transacts all of the following types of insurance EXCEPT -
Answers o Life insurance
10. Which of the following is TRUE regarding con nuing educa on requirements of an agent or
broker? - Answers o Any licensee shall sa sfactorily complete 24 hours of instruc on prior to
license renewal.
11. All of the following are included as defini ons of "transact" as applied to insurance EXCEPT?
- Answers o Underwri ng
12. Which group of people is offered addi onal protec on by the Unfair Prac ces Act that
regulates trade prac ces in the business of insurance? - Answers o Survivors of the Holocaust
13. Which of the following can the insurer do if the insured inten onally conceals or
misrepresents a material fact concerning any coverage part? - Answers o Rescind the contract
14. While both work with an insurer, how does an "Insurance broker" differ from an "insurance
agent"? - Answers o The broker does not transact on behalf of an insurer, while the agent
does.
15. How can a licensee surrender any license for cancella on? - Answers o By submi=ng
wri en no ce or by delivering the license to the commissioner
16. The following are all penal es for unlawfully ac ng as an insurer without a cer ficate of
authority EXCEPT? - Answers The individual will be banned from prac cing insurance for a
period of 5 years
, 17. Materiality to be solely determined by which of the following? - Answers o The probable
and reasonable influence of the facts upon the party to whom the communica on is due
18. What is a solicitor employed to do for a policy other than life? - Answers To aid a property
and casualty agent or broker in transac ng insurance.
19. ALL of the following are TRUE regarding the process to change the California Code of
Regula ons EXCEPT? - Answers o the Office of Administra ve Law (OAL) may subs tute its
own judgment for that of the rulemaking agency.
20. How may a license be surrendered by the insuree, or terminated by the employer? -
Answers o Personally, delivering the license to the insurance commissioner, or by wri en
no ce from the employer.
21. All of the following are to be specified in an insurance policy EXCEPT? - Answers o The
financial ra ng of the insured
22. When may a representa on be altered or withdrawn? - Answers o Before the insurance is
effected.
23. Which of the following provisions of free insurance offered as an incen ve to purchase or
rent property is TRUE? - Answers o It requires a separate charge or fee.
24. Which circumstances in a pretext interview determine if the ques ons are permissible? -
Answers o When an insured is consulted by a person who hides his true iden ty on purpose
when fraud for a claim is suspected.
25. All of the following are examples of misrepresenta ons that may not be made by an insurer,
officer or agent thereof or an insurance broker or solicitor EXCEPT - Answers o the specific
contract language.
