1
PSI PROPERTY AND CASUALTY EXAM
QUESTIONS WITH COMPLETE SOLUTIONS
LATEST UPDATE
When can a rate be denied by the Department? - correct-answer -when it is
inadequate and excessive
A "personal lines" agent or broker is allowed to transact what type of insurance
coverage? - correct-answer -Noncommercial automobile and residential property
What is the required rate discount under a good driver discount policy? - correct-
answer -20% below the rate the insured would have been charged otherwise for
the same coverage
Which condition is NOT required to be met for a surplus line broker to advise any
home state insured or applicate that coverage has been, or will be obtained from
a nonadmitted insurer? - correct-answer -An annual payment as been received by
the insurer?
, 2
Who is authorized to adjust or pay claims in excess of an amount determined by
the comissioner? - correct-answer -The managing general agent
In order for an insurer to contract with the state compensation insurance fund it
must meet all of the following criteria EXCEPT - correct-answer -The insurer has
met all ration requirements for risk based capital RBC
In conducting the business and affairs of the state compensation insurance fund it
must meet all of the following criteria EXCEPT - correct-answer -Sell life insurance
covering compensation benefits
Who is able to place business through the California Automobile Assessed Risk
Program? - correct-answer -Only agent/brokers licensed in fire and casualty who
have also been certified through CAARP
Under the California Vehicle Code all of the following are acceptable to satisfy the
financial responsibility requirement EXCEPT - correct-answer -A company with an
escrow account that is licensed to do business in California
PSI PROPERTY AND CASUALTY EXAM
QUESTIONS WITH COMPLETE SOLUTIONS
LATEST UPDATE
When can a rate be denied by the Department? - correct-answer -when it is
inadequate and excessive
A "personal lines" agent or broker is allowed to transact what type of insurance
coverage? - correct-answer -Noncommercial automobile and residential property
What is the required rate discount under a good driver discount policy? - correct-
answer -20% below the rate the insured would have been charged otherwise for
the same coverage
Which condition is NOT required to be met for a surplus line broker to advise any
home state insured or applicate that coverage has been, or will be obtained from
a nonadmitted insurer? - correct-answer -An annual payment as been received by
the insurer?
, 2
Who is authorized to adjust or pay claims in excess of an amount determined by
the comissioner? - correct-answer -The managing general agent
In order for an insurer to contract with the state compensation insurance fund it
must meet all of the following criteria EXCEPT - correct-answer -The insurer has
met all ration requirements for risk based capital RBC
In conducting the business and affairs of the state compensation insurance fund it
must meet all of the following criteria EXCEPT - correct-answer -Sell life insurance
covering compensation benefits
Who is able to place business through the California Automobile Assessed Risk
Program? - correct-answer -Only agent/brokers licensed in fire and casualty who
have also been certified through CAARP
Under the California Vehicle Code all of the following are acceptable to satisfy the
financial responsibility requirement EXCEPT - correct-answer -A company with an
escrow account that is licensed to do business in California
