PSI Exam Property and Casualty
A "personal lines" agent or broker is allowed to transact what type of insurance coverage? -
ANS-Noncommercial automobile and residential property
A claimant can be any of the following EXCPT - ANS-A person who is conducting an
investigation of a claim on behalf of the insurer
A personal lines licensee is an agent-broker who is able to transact coverage for all the
following EXCEPT - ANS-Personal Aircraft
A standard fire insurance policy contains the following details EXCEPT - ANS-The address of
the insured
All of the following are authorized activities for the limited lines automobile insurance agents
EXCEPT if the agent - ANS-Charges and collects a brokers fee for service
All of the following are designed as private passenger vehicles EXCEPT - ANS-A four wheel
vehicle used as a taxi by an individual and not a company
ALL of the following are examples of open policies EXCEPT - ANS-Agreed Value
All of the following are examples of representation EXCEPT - ANS-It may be altered after the
insurance is effected
All of the following are part of the Minimum Liability Insurance Requirements for Private
Passenger Vehicles EXCEPT - ANS-5k for medical services
All of the following are requirements for determining an area that qualifies for Low Cost
Automobile Insurance EXCEPT - ANS-The number of automobile accidents that occur within
the county
All of the following are to be specified in an insurance policy EXCEPT - ANS-The financial rating
of the insured
All of the following are TRUE regarding the process to change the California Code of
Regulations EXCPT - ANS-The office of administrative law may substitute its own judgement for
that of the rulemaking agency
As used in the insurance code, the word "Shall" is mandatory and the word "may" is permissive
EXCEPT - ANS-Unless otherwise apparent from the context
, At which point is a person licensed as a broker-agent deemed to be acting as an insurance
agent? - ANS-when a notice of appointment is filed with the insurance commissioner
Except in a case where the property is being held as a carrier or depository, what is the
insurance interest is measured by? - ANS-The extent to which the insured would be damnified
by loss or injury to the property
How can a licensee surrender any license for cancellation? - ANS-By submitted written notice or
delivering the license to the commissioner
How many classes of insurance are defined under California insurance law including
"miscellaneous" and "reserved"? - ANS-There are a total of 20 classes of insurance under CA
insurance law with sub classes
If fiduciary funds are received by any licensee, the funds shall be maintained in any of the
following EXCEPT - ANS-Bods issued in all 50 states of the US
In conducting the business and affairs of the state compensation insurance fund it must meet all
of the following criteria EXCEPT - ANS-Sell life insurance covering compensation benefits
In order for an insurer to contract with the state compensation insurance fund it must meet all of
the following criteria EXCEPT - ANS-The insurer has met all ration requirements for risk based
capital RBC
The Insurance Commissioner may deny an application for any license issued for any of the
following EXECPT - ANS-The applicant is lacking in good judgement
The Managing General Agent negotiates and binds ceding insurance on behalf of whom? -
ANS-The insurer
Under the California Vehicle Code all of the following are acceptable to satisfy the financial
responsibility requirement EXCEPT - ANS-A company with an escrow account that is licensed
to do business in California
Unless otherwise specified in the insurance contract, all of the following are TRUE regarding
return of premium EXCEPT - ANS-The premium is forfeited if the policy is cancelled
What criteria must a person meet in order to be qualified to purchase a good driver discount
policy? - ANS-Being licensed to drive a motor vehicle for the previous 3 years and has not had
more than 1 violation point as determined by the CIC
What document must be provided to the insured prior to any residential insurance policy being
issued or renewed? - ANS-A copy of the California Residential Property disclosure statement?
A "personal lines" agent or broker is allowed to transact what type of insurance coverage? -
ANS-Noncommercial automobile and residential property
A claimant can be any of the following EXCPT - ANS-A person who is conducting an
investigation of a claim on behalf of the insurer
A personal lines licensee is an agent-broker who is able to transact coverage for all the
following EXCEPT - ANS-Personal Aircraft
A standard fire insurance policy contains the following details EXCEPT - ANS-The address of
the insured
All of the following are authorized activities for the limited lines automobile insurance agents
EXCEPT if the agent - ANS-Charges and collects a brokers fee for service
All of the following are designed as private passenger vehicles EXCEPT - ANS-A four wheel
vehicle used as a taxi by an individual and not a company
ALL of the following are examples of open policies EXCEPT - ANS-Agreed Value
All of the following are examples of representation EXCEPT - ANS-It may be altered after the
insurance is effected
All of the following are part of the Minimum Liability Insurance Requirements for Private
Passenger Vehicles EXCEPT - ANS-5k for medical services
All of the following are requirements for determining an area that qualifies for Low Cost
Automobile Insurance EXCEPT - ANS-The number of automobile accidents that occur within
the county
All of the following are to be specified in an insurance policy EXCEPT - ANS-The financial rating
of the insured
All of the following are TRUE regarding the process to change the California Code of
Regulations EXCPT - ANS-The office of administrative law may substitute its own judgement for
that of the rulemaking agency
As used in the insurance code, the word "Shall" is mandatory and the word "may" is permissive
EXCEPT - ANS-Unless otherwise apparent from the context
, At which point is a person licensed as a broker-agent deemed to be acting as an insurance
agent? - ANS-when a notice of appointment is filed with the insurance commissioner
Except in a case where the property is being held as a carrier or depository, what is the
insurance interest is measured by? - ANS-The extent to which the insured would be damnified
by loss or injury to the property
How can a licensee surrender any license for cancellation? - ANS-By submitted written notice or
delivering the license to the commissioner
How many classes of insurance are defined under California insurance law including
"miscellaneous" and "reserved"? - ANS-There are a total of 20 classes of insurance under CA
insurance law with sub classes
If fiduciary funds are received by any licensee, the funds shall be maintained in any of the
following EXCEPT - ANS-Bods issued in all 50 states of the US
In conducting the business and affairs of the state compensation insurance fund it must meet all
of the following criteria EXCEPT - ANS-Sell life insurance covering compensation benefits
In order for an insurer to contract with the state compensation insurance fund it must meet all of
the following criteria EXCEPT - ANS-The insurer has met all ration requirements for risk based
capital RBC
The Insurance Commissioner may deny an application for any license issued for any of the
following EXECPT - ANS-The applicant is lacking in good judgement
The Managing General Agent negotiates and binds ceding insurance on behalf of whom? -
ANS-The insurer
Under the California Vehicle Code all of the following are acceptable to satisfy the financial
responsibility requirement EXCEPT - ANS-A company with an escrow account that is licensed
to do business in California
Unless otherwise specified in the insurance contract, all of the following are TRUE regarding
return of premium EXCEPT - ANS-The premium is forfeited if the policy is cancelled
What criteria must a person meet in order to be qualified to purchase a good driver discount
policy? - ANS-Being licensed to drive a motor vehicle for the previous 3 years and has not had
more than 1 violation point as determined by the CIC
What document must be provided to the insured prior to any residential insurance policy being
issued or renewed? - ANS-A copy of the California Residential Property disclosure statement?
