PSI CA PROPERTY AND CASUALTY
PRACTICE EXAMINATION Q AND A
1vyCanvyavylender,vyasvyavyconditionvyofvymakingvyavyloan,vyrequirevythatvyanyvyinsurancevyb
evyplacedvythroughvyavyparticularvyinsurancevyagentvyorvybroker?vy-vyanswer--
Thevyloanvyrecipientvymayvyalwaysvyselectvyavyparticularvyagentvyorvybrokervyofvytheirvychoo
sing
2vyAvyclaimantvycanvybevyanyvyofvythevyfollowingvyEXCEPTvy-vyanswer--
EXCEPTvyavypersonvywhovyisvyconductingvyanvyinvestigationvyofvyavyclaimvyonvybehalfvyofvy
anvyinsurer
3vyAllvyofvythevyfollowingvyarevytovybevyspecifiedvyinvyanvyinsurancevypolicyvyEXCEPTvy-
vyanswer--EXCEPTvythevyfinancialvyratingvyofvythevyinsured
4vyWhichvyofvythevyfollowingvyprovisionsvyofvyfreevyinsurancevyofferedvyasvyanvyincentivevyto
vypurchasevyorvyrentvypropertyvyisvyTRUE?vy-vyanswer--
Itvyrequiresvyavyseparatevychargevyorvyfee
5vyWhatvyisvythevymethodvyusedvyforvyplacingvybusinessvywithvythevyCaliforniavyAutomobilev
yAssignedvyRiskvyProgram?vy-vyanswer--
ThevypercentagevyofvyCAARPvypoliciesvyrequiredvyisvyequalvytovythevypercentagevyofvyregul
arvyinsurancevypoliciesvythevyinsurervyhasvyissuedvywithinvythevyState
6vyWhethervyadmittedvyorvynonadmitted,vyhowvydoesvyavy"foreign"vyinsurervydiffervyfromvyan
vy"alien"vyorvy"domestic"vyinsurer?vy-vyanswer--
Avy"foreign"vyinsurervyisvyorganizedvyundervythevylawsvyofvyanothervystatevywithinvythevyUnit
edvyStates
7vyAllvyofvythevyfollowingvyarevyreasonsvyemployersvyliabilityvyinsurancevyisvyneededvyinvyad
ditionvytovyworkers'vycompensationvyinsurancevyEXCEPTvy-vyanswer--
EXCEPTvytovypayvymedicalvybills
8vyWhatvyisvythevypurposevyofvythevyexperiencevymodificationvysystemvyinvythevyCaliforniavy
workers'vycompensationvyexperiencevyratingvysystem?vy-vyanswer--
Itvyexpressesvyavyparticularvycompany'svylossvyorvyclaimsvyhistoryvyasvyavypercentagevytovya
llvyothervycompaniesvyinvythevyindustry
9vyWhichvyformvyofvynegotiationvyisvycoveredvyundervythevydefinitionvyofvy"transact"vyasvyap
pliedvytovyinsurance?vy-vyanswer--Negotiationsvypreliminaryvytovyexecution
10vyWhichvytypevyofvycoveragevyprotectsvyagainstvylossvycausedvybyvyearthvymovement?vy-
vyanswer--Avystand-
, alonevyEarthquakevyInsurancevypolicyvyspecificallyvyinsuringvyagainstvylossvycausedvybyvyl
andvysubsidence
11vyWhichvycircumstancesvyinvyavypretextvyinterviewvydeterminevyifvythevyquestionsvyarevyp
ermissible?vy-vyanswer--
Whenvyanvyinsuredvyisvyconsultedvybyvyavypersonvywhovyhidesvyhisvytruevyidentityvyonvypurp
osevywhenvyfraudvyforvyavyclaimvyisvysuspected
12vyWhichvyisvyTRUEvyregardingvyexpectantvyorvycontingentvyinterest?vy-vyanswer--
ExpectantvyorvycontingentvyinterestvydoesvyNOTvyconstitutevyinsurablevyinterest
13vy"Person"vymeansvyallvyofvythevyfollowingvyEXCEPTvy-vyanswer--
EXCEPTvyanvyorganizationalvytrust
14vyWhichvyofvythevyfollowingvyisvyTRUEvyregardingvycontinuingvyeducationvyrequirements
vyofvyanvyagentvyorvybroker?vy-vyanswer--
Anyvylicenseevyshallvysatisfactorilyvycompletevy24vyhoursvyofvyinstructionvypriorvytovylicense
vyrenewal.
15vyExceptvyinvyavycasevywherevythevypropertyvyisvybeingvyheldvyasvyavycarriervyorvydepositor
y,vywhatvyisvythevyinsurablevyinterestvyisvymeasuredvyby?vy-vyanswer--
EXCEPTvyThevyextentvytovywhichvythevyinsuredvywouldvybevydamnifiedvybyvylossvyorvyinjuryv
ytovythevyproperty
16vyAllvyofvythevyfollowingvyarevyincludedvyasvydefinitionsvyofvy"transact"vyasvyappliedvytovyins
urancevyEXCEPTvy-vyanswer--EXCEPTvyunderwriting
17vyAtvywhichvypointvyisvyavypersonvylicensedvyasvyavybroker-
agentvydeemedvytovybevyactingvyasvyanvyinsurancevyagent?vy-vyanswer--
whenvyavynoticevyofvyappointmentvyisvyfiledvywithvythevyinsurancevycommissioner
18vyHowvymayvyavylicensevybevysurrenderedvybyvythevyinsuree,vyorvyterminatedvybyvythevye
mployer?vy-vyanswer--
Personallyvydeliveringvythevylicensevytovythevyinsurancevycommissioner,vyorvybyvywrittenvyn
oticevyformvythevyemployer.
19vyWhatvyisvythevypunishmentvyforvyavypersonvywhovyrefusesvytovydelivervybooks,vyrecords,
vyorvyassetsvytovythevycommissionervywhenvysubjectvytovyavyseizurevyordervyinvyanvyinsolven
cyvyproceeding?vy-vyanswer--Notvymorevythanvy$1000vyfinevyand/
orvy1vyyearvyimprisonment
20vyWhichvyisvyNOTvyavydutyvyofvythevyWorkersvyCompensationvyBureau?vy-vyanswer--
Determinevywhichvyclaimsvyarevyapprovedvyandvywhichvyarevydenied
21vyAvystandardvyfirevyinsurancevypolicyvycontainsvythevyfollowingvydetailsvyEXCEPTvy-
vyanswer--EXCEPTvythevyaddressvyofvythevyinsured
22vyInvythevyeventvyofvyreceivingvynoticevyofvyavyclaimvyorvyothervyclaimvycommunication,vyall
vyofvythevyfollowingvytimelinesvyarevyaccuratevyEXCEPTvy-vyanswer--
PRACTICE EXAMINATION Q AND A
1vyCanvyavylender,vyasvyavyconditionvyofvymakingvyavyloan,vyrequirevythatvyanyvyinsurancevyb
evyplacedvythroughvyavyparticularvyinsurancevyagentvyorvybroker?vy-vyanswer--
Thevyloanvyrecipientvymayvyalwaysvyselectvyavyparticularvyagentvyorvybrokervyofvytheirvychoo
sing
2vyAvyclaimantvycanvybevyanyvyofvythevyfollowingvyEXCEPTvy-vyanswer--
EXCEPTvyavypersonvywhovyisvyconductingvyanvyinvestigationvyofvyavyclaimvyonvybehalfvyofvy
anvyinsurer
3vyAllvyofvythevyfollowingvyarevytovybevyspecifiedvyinvyanvyinsurancevypolicyvyEXCEPTvy-
vyanswer--EXCEPTvythevyfinancialvyratingvyofvythevyinsured
4vyWhichvyofvythevyfollowingvyprovisionsvyofvyfreevyinsurancevyofferedvyasvyanvyincentivevyto
vypurchasevyorvyrentvypropertyvyisvyTRUE?vy-vyanswer--
Itvyrequiresvyavyseparatevychargevyorvyfee
5vyWhatvyisvythevymethodvyusedvyforvyplacingvybusinessvywithvythevyCaliforniavyAutomobilev
yAssignedvyRiskvyProgram?vy-vyanswer--
ThevypercentagevyofvyCAARPvypoliciesvyrequiredvyisvyequalvytovythevypercentagevyofvyregul
arvyinsurancevypoliciesvythevyinsurervyhasvyissuedvywithinvythevyState
6vyWhethervyadmittedvyorvynonadmitted,vyhowvydoesvyavy"foreign"vyinsurervydiffervyfromvyan
vy"alien"vyorvy"domestic"vyinsurer?vy-vyanswer--
Avy"foreign"vyinsurervyisvyorganizedvyundervythevylawsvyofvyanothervystatevywithinvythevyUnit
edvyStates
7vyAllvyofvythevyfollowingvyarevyreasonsvyemployersvyliabilityvyinsurancevyisvyneededvyinvyad
ditionvytovyworkers'vycompensationvyinsurancevyEXCEPTvy-vyanswer--
EXCEPTvytovypayvymedicalvybills
8vyWhatvyisvythevypurposevyofvythevyexperiencevymodificationvysystemvyinvythevyCaliforniavy
workers'vycompensationvyexperiencevyratingvysystem?vy-vyanswer--
Itvyexpressesvyavyparticularvycompany'svylossvyorvyclaimsvyhistoryvyasvyavypercentagevytovya
llvyothervycompaniesvyinvythevyindustry
9vyWhichvyformvyofvynegotiationvyisvycoveredvyundervythevydefinitionvyofvy"transact"vyasvyap
pliedvytovyinsurance?vy-vyanswer--Negotiationsvypreliminaryvytovyexecution
10vyWhichvytypevyofvycoveragevyprotectsvyagainstvylossvycausedvybyvyearthvymovement?vy-
vyanswer--Avystand-
, alonevyEarthquakevyInsurancevypolicyvyspecificallyvyinsuringvyagainstvylossvycausedvybyvyl
andvysubsidence
11vyWhichvycircumstancesvyinvyavypretextvyinterviewvydeterminevyifvythevyquestionsvyarevyp
ermissible?vy-vyanswer--
Whenvyanvyinsuredvyisvyconsultedvybyvyavypersonvywhovyhidesvyhisvytruevyidentityvyonvypurp
osevywhenvyfraudvyforvyavyclaimvyisvysuspected
12vyWhichvyisvyTRUEvyregardingvyexpectantvyorvycontingentvyinterest?vy-vyanswer--
ExpectantvyorvycontingentvyinterestvydoesvyNOTvyconstitutevyinsurablevyinterest
13vy"Person"vymeansvyallvyofvythevyfollowingvyEXCEPTvy-vyanswer--
EXCEPTvyanvyorganizationalvytrust
14vyWhichvyofvythevyfollowingvyisvyTRUEvyregardingvycontinuingvyeducationvyrequirements
vyofvyanvyagentvyorvybroker?vy-vyanswer--
Anyvylicenseevyshallvysatisfactorilyvycompletevy24vyhoursvyofvyinstructionvypriorvytovylicense
vyrenewal.
15vyExceptvyinvyavycasevywherevythevypropertyvyisvybeingvyheldvyasvyavycarriervyorvydepositor
y,vywhatvyisvythevyinsurablevyinterestvyisvymeasuredvyby?vy-vyanswer--
EXCEPTvyThevyextentvytovywhichvythevyinsuredvywouldvybevydamnifiedvybyvylossvyorvyinjuryv
ytovythevyproperty
16vyAllvyofvythevyfollowingvyarevyincludedvyasvydefinitionsvyofvy"transact"vyasvyappliedvytovyins
urancevyEXCEPTvy-vyanswer--EXCEPTvyunderwriting
17vyAtvywhichvypointvyisvyavypersonvylicensedvyasvyavybroker-
agentvydeemedvytovybevyactingvyasvyanvyinsurancevyagent?vy-vyanswer--
whenvyavynoticevyofvyappointmentvyisvyfiledvywithvythevyinsurancevycommissioner
18vyHowvymayvyavylicensevybevysurrenderedvybyvythevyinsuree,vyorvyterminatedvybyvythevye
mployer?vy-vyanswer--
Personallyvydeliveringvythevylicensevytovythevyinsurancevycommissioner,vyorvybyvywrittenvyn
oticevyformvythevyemployer.
19vyWhatvyisvythevypunishmentvyforvyavypersonvywhovyrefusesvytovydelivervybooks,vyrecords,
vyorvyassetsvytovythevycommissionervywhenvysubjectvytovyavyseizurevyordervyinvyanvyinsolven
cyvyproceeding?vy-vyanswer--Notvymorevythanvy$1000vyfinevyand/
orvy1vyyearvyimprisonment
20vyWhichvyisvyNOTvyavydutyvyofvythevyWorkersvyCompensationvyBureau?vy-vyanswer--
Determinevywhichvyclaimsvyarevyapprovedvyandvywhichvyarevydenied
21vyAvystandardvyfirevyinsurancevypolicyvycontainsvythevyfollowingvydetailsvyEXCEPTvy-
vyanswer--EXCEPTvythevyaddressvyofvythevyinsured
22vyInvythevyeventvyofvyreceivingvynoticevyofvyavyclaimvyorvyothervyclaimvycommunication,vyall
vyofvythevyfollowingvytimelinesvyarevyaccuratevyEXCEPTvy-vyanswer--
