SC P&C PSI EXAM QUESTIONS WITH
COMPLETE SOLUTIONS
What vccare vccthe vccminimum vccrequirements vccto vccbecome vcca vcclicensed vccproducer
vccin vccSC? vcc- vccAnswerAt vccleast vcc18, vccgood vccmoral vcccharacter, vccclean vccSLED
vccbackground, vccpassed vccthe vccLAH vcctest, vcccompleted vccDOI vcclicense vccregistration
vccapplication vccsand vccpaid vccthe vccfee
What vccdocumentation vccis vccrequested vccby vccthe vccSC vccDepartment vccof
vccInsurance vccto vccprocess vccyour vccapplication? vcc- vccAnswerDOI vccapplication
vccconfirmation vccpage vccincluding vccevidence vccof vcc$25 vccfee vccpaid, vccclean
vcccriminal vccbackground vcccheck, vccpsi vccoriginal vccexam vccscore vccreport vccwith
vccscore vccof vcc70% vccor vcchigher
How vccdoes vcca vccProducer vccbecome vccan vccAgent? vcc- vccAnswerOnce vcca vccperson
vcchas vccProducer's vcclicense vccfrom vccthe vccDOI, vccindividual vccinsurers vccappoint
vccthat vccproducer vccto vccbe vcctheir vccagent, vcccan vccbe vccappointed vccby vccmultiple
vcccarriers
Name vccthe vcc3 vcctypes vccof vccIndividual vccLicenses vccissued vccby vccthe vccDirector vcc-
vccAnswerIndividual vccproducer, vccnonresident vccproducer, vcctemporary vcclisence
Who vccdoes vcca vccBroker vccrepresent? vcc- vccAnswerthe vcccitizens vccof vccthe vccstate
vccin vccplacing vcctheir vccinsurance
Describe vcchow vccthe vccdirector vccof vccinsurance vccgets vccthe vccjob? vcc-
vccAnswerappointed vccby vccthe vccgovernor vccwith vccthe vccsenate's vccapproval vccand
vccconsent
The vccDirector vcccan vccexamine vccthe vccbooks vccand vccrecords vccof vccan vccinsurer vccas
vccoften vcc____________, vccbut vccmost vccdo vccso vccat vccleast vcc________ vccevery
vcc________ vccyears. vcc- vccAnsweras vccnecessary, vcconce, vccfive
When vccan vccinsurer vccterminates vcca vccproducer's vccappointment, vccthe vccinsurer
vccmust vccnotify vccthe vccDOI vcc________ vccof vccthe vcctermination. vcc- vccAnswerwithin
vcc30 vccdays
,Producers vccmust vccmaintain vccrecords vccof vccevery vccinsurance vcctransaction vccfor
vcc________, vccand vccthe vccDirector vccmay vccexamine vccthem vcc_________. vcc-
vccAnswer5 vccyears vccafter vcclast vcccontact, vccat vccany vcctime.
What vccare vccthe vccrequirements vccfor vcca vcccompany vccto vccbe vcclicensed vccin vccour
vccstate? vcc- vccAnswerThe vccinsurer vccis vccsafe vccand vccsolvent, vccqualified vccto
vcctransact vccbusiness, vccpays vccall vcctaxes, vcchas vccadequate vccreserves vccand
vccreinsurance vccarrangements, vccnone vccof vccthe vccofficers vccor vccdirectors vcchave
vccbeen vccguilty vccof vccfraud vccor vccviolation vccof vccthe vccinsurance vcclaws, vccand vccthe
vcccompany's vccoperations vccmust vccnot vccbe vcchazardous vccto vccthe vccpublic vccor
vccpolicyholders.
Under vccwhat vcccircumstances vccmay vcca vccproducer vccshare vcca vcccommission? vcc-
vccAnswerif vccthey vccboth vccare vcclegally vcclicensed vccin vccthe vccsame vccline vccof
vccinsurance
What vccis vccthe vccprimary vccpurpose vccof vccthe vccInsurance vccFraud vccAct vcc-
vccAnswerencouraging vccreports vccof vccfraud vccwith vccimmunity vccfor vcctruthful
vcctestimony, vccrestitution vccfor vccvictims, vcccoordination vccwith vccSLED vccand
vccAttorney vccGeneral vccfor vccaggressive vccprosecution vccand vccstiff vcccivil vccand
vcccriminal vccpenalties vccfor vccfraud.
When vccdoes vccthe vccproducer vccget vccan vccopportunity vccto vccreply vccto vcctheir
vccappointment vccbeing vccterminated? vcc- vccAnswerwithin vcc30 vccdays vccof vccreceiving
vccthe vccnotice vccof vcctermination, vccthey vccmay vccfile vccwritten vcccomments vccwith vccthe
vccdirector vccor vcchis vccdesignee vccand vccsend vcca vcccopy vccto vccthe vccinsurer
What vccmethod vccdoes vccthe vccDirector vccuse vccto vccprevent vcca vccproducer vccfrom
vccperforming vcccertain vccacts vccassociated vccwith vccthe vccbusiness vccof vccinsurance?
vcc- vccAnswerissue vcca vcccease vccand vccdesist vccorder vccto vccstop vccan vccagent vccfrom
vcccontinuing vccto vcccommit vccan vccunfair vcctrade vccpractice vccor vccdealing vccunjustly
vccwith vccthe vcccitizens vccof vccthe vccstate
A vcctemporary vccproducer's vcclicense vccis vccvalid vccfor vcc_________ vccand vccrequires
vccno vccexamination. vcc- vccAnswer180 vccdays vccor vccuntil vccthe vccbusiness vccis
vccdisposed vccof
To vccmaintain vcca vcclicense, vcca vccproducer vccmust vcccomplete vccat vcc_________ vccof
vcccontinuing vcceducation vccevery vcc_____ vccyears. vcc- vccAnswerleast vcc24 vcchours,
vcctwo
How vcclong vccis vccyour vccinsurance vcclicense vccgood vccfor? vcc- vccAnswervalid
vccindefinitely, vccbut vccmust vccbe vccrenewed vccbiennially
, A vccproducer vccmust vccnotify vccthe vccDepartment vccof vccany vccchange vccin vcclegal
vccname vccor vcc_____ vccwithin vcc_________ vccof vccthe vccchange. vcc- vccAnsweraddress,
vcc30 vccdays
A vccperson vcccharged vccwith vccviolating vccthe vccinsurance vcclaws vccis vccentitled vccto vcca
vcc______ vccand vccat vccleast vcc_____ vccadvance vccnotice vccof vccthe vcchearing. vcc-
vccAnswerhearing, vcc30 vccdays
Licenses vcccan vccbe vccsuspended vccfor vccup vccto vcc______ vccyears. vcc- vccAnswer2
Persons vccwhose vcclicense vcchave vccbeen vccrevoked vcccannot vcc___________ vccfor
vccanother vcclicense vccfor vccat vcc___________ vccyears. vcc- vccAnswerreapply, vcc2
A vcc"risk" vcccan vccbe vccperson, vcc_______, vccor vcc_________ vccthat vccis vccinsured. vcc-
vccAnswerproperty, vccor vccactivity
There vccare vcctwo vcctypes vccof vccrisks. vccThey vccare vcc____________ vccand
vcc__________. vcc- vccAnswerPure vccand vccspeculative
Insurance vcccompanies vccwill vcconly vccinsure vccwhich vcctype vccof vccrisk? vcc-
vccAnswerPure
A vccHazard vccwill vccincrease vccthe vccprobability vcca vccloss vccwill vccoccur? vcc-
vccAnswerYup
Name vccthe vccfour vcctypes vccof vcchazards. vcc- vccAnswerPhysical, vccmoral, vccmorale,
vcclegal
A vcccause vccof vccloss vccis vccalso vccknown vccas vcca vcc________. vcc- vccAnswerPeril
Name vccthe vcc5 vccmethods vccof vcchandling vccrisk. vcc- vccAnswerShare, vcctransfer,
vccavoid, vccreduce, vccretain
When vccan vccindividual vccpurchases vccan vccinsurance vccpolicy vccthey vcc______ vccthe
vccfinancial vccliability. vcc- vccAnswertransfer
Only vccwhich vcctype vccof vccrisk vccis vccinsurable? vcc- vccAnswerIt vccmust vccbe vccdefinite
vccand vccmeasurable, vccdue vccto vccchance, vccstatistically vccpredictable, vccnot
vcccatastrophic vccin vccnature, vccrandomly vccselected vccand vcclarge vccexposure vccto
vccloss, vccnot vccmandatory.
Under vccthe vccconcept vccof vccthe vccLaw vccof vccLarge vccNumbers, vccas vccthe vccsample
vccsize vccincreases vccthe vccprediction vccbecomes vccmore vccor vccless vccaccurate? vcc-
vccAnswerMore
COMPLETE SOLUTIONS
What vccare vccthe vccminimum vccrequirements vccto vccbecome vcca vcclicensed vccproducer
vccin vccSC? vcc- vccAnswerAt vccleast vcc18, vccgood vccmoral vcccharacter, vccclean vccSLED
vccbackground, vccpassed vccthe vccLAH vcctest, vcccompleted vccDOI vcclicense vccregistration
vccapplication vccsand vccpaid vccthe vccfee
What vccdocumentation vccis vccrequested vccby vccthe vccSC vccDepartment vccof
vccInsurance vccto vccprocess vccyour vccapplication? vcc- vccAnswerDOI vccapplication
vccconfirmation vccpage vccincluding vccevidence vccof vcc$25 vccfee vccpaid, vccclean
vcccriminal vccbackground vcccheck, vccpsi vccoriginal vccexam vccscore vccreport vccwith
vccscore vccof vcc70% vccor vcchigher
How vccdoes vcca vccProducer vccbecome vccan vccAgent? vcc- vccAnswerOnce vcca vccperson
vcchas vccProducer's vcclicense vccfrom vccthe vccDOI, vccindividual vccinsurers vccappoint
vccthat vccproducer vccto vccbe vcctheir vccagent, vcccan vccbe vccappointed vccby vccmultiple
vcccarriers
Name vccthe vcc3 vcctypes vccof vccIndividual vccLicenses vccissued vccby vccthe vccDirector vcc-
vccAnswerIndividual vccproducer, vccnonresident vccproducer, vcctemporary vcclisence
Who vccdoes vcca vccBroker vccrepresent? vcc- vccAnswerthe vcccitizens vccof vccthe vccstate
vccin vccplacing vcctheir vccinsurance
Describe vcchow vccthe vccdirector vccof vccinsurance vccgets vccthe vccjob? vcc-
vccAnswerappointed vccby vccthe vccgovernor vccwith vccthe vccsenate's vccapproval vccand
vccconsent
The vccDirector vcccan vccexamine vccthe vccbooks vccand vccrecords vccof vccan vccinsurer vccas
vccoften vcc____________, vccbut vccmost vccdo vccso vccat vccleast vcc________ vccevery
vcc________ vccyears. vcc- vccAnsweras vccnecessary, vcconce, vccfive
When vccan vccinsurer vccterminates vcca vccproducer's vccappointment, vccthe vccinsurer
vccmust vccnotify vccthe vccDOI vcc________ vccof vccthe vcctermination. vcc- vccAnswerwithin
vcc30 vccdays
,Producers vccmust vccmaintain vccrecords vccof vccevery vccinsurance vcctransaction vccfor
vcc________, vccand vccthe vccDirector vccmay vccexamine vccthem vcc_________. vcc-
vccAnswer5 vccyears vccafter vcclast vcccontact, vccat vccany vcctime.
What vccare vccthe vccrequirements vccfor vcca vcccompany vccto vccbe vcclicensed vccin vccour
vccstate? vcc- vccAnswerThe vccinsurer vccis vccsafe vccand vccsolvent, vccqualified vccto
vcctransact vccbusiness, vccpays vccall vcctaxes, vcchas vccadequate vccreserves vccand
vccreinsurance vccarrangements, vccnone vccof vccthe vccofficers vccor vccdirectors vcchave
vccbeen vccguilty vccof vccfraud vccor vccviolation vccof vccthe vccinsurance vcclaws, vccand vccthe
vcccompany's vccoperations vccmust vccnot vccbe vcchazardous vccto vccthe vccpublic vccor
vccpolicyholders.
Under vccwhat vcccircumstances vccmay vcca vccproducer vccshare vcca vcccommission? vcc-
vccAnswerif vccthey vccboth vccare vcclegally vcclicensed vccin vccthe vccsame vccline vccof
vccinsurance
What vccis vccthe vccprimary vccpurpose vccof vccthe vccInsurance vccFraud vccAct vcc-
vccAnswerencouraging vccreports vccof vccfraud vccwith vccimmunity vccfor vcctruthful
vcctestimony, vccrestitution vccfor vccvictims, vcccoordination vccwith vccSLED vccand
vccAttorney vccGeneral vccfor vccaggressive vccprosecution vccand vccstiff vcccivil vccand
vcccriminal vccpenalties vccfor vccfraud.
When vccdoes vccthe vccproducer vccget vccan vccopportunity vccto vccreply vccto vcctheir
vccappointment vccbeing vccterminated? vcc- vccAnswerwithin vcc30 vccdays vccof vccreceiving
vccthe vccnotice vccof vcctermination, vccthey vccmay vccfile vccwritten vcccomments vccwith vccthe
vccdirector vccor vcchis vccdesignee vccand vccsend vcca vcccopy vccto vccthe vccinsurer
What vccmethod vccdoes vccthe vccDirector vccuse vccto vccprevent vcca vccproducer vccfrom
vccperforming vcccertain vccacts vccassociated vccwith vccthe vccbusiness vccof vccinsurance?
vcc- vccAnswerissue vcca vcccease vccand vccdesist vccorder vccto vccstop vccan vccagent vccfrom
vcccontinuing vccto vcccommit vccan vccunfair vcctrade vccpractice vccor vccdealing vccunjustly
vccwith vccthe vcccitizens vccof vccthe vccstate
A vcctemporary vccproducer's vcclicense vccis vccvalid vccfor vcc_________ vccand vccrequires
vccno vccexamination. vcc- vccAnswer180 vccdays vccor vccuntil vccthe vccbusiness vccis
vccdisposed vccof
To vccmaintain vcca vcclicense, vcca vccproducer vccmust vcccomplete vccat vcc_________ vccof
vcccontinuing vcceducation vccevery vcc_____ vccyears. vcc- vccAnswerleast vcc24 vcchours,
vcctwo
How vcclong vccis vccyour vccinsurance vcclicense vccgood vccfor? vcc- vccAnswervalid
vccindefinitely, vccbut vccmust vccbe vccrenewed vccbiennially
, A vccproducer vccmust vccnotify vccthe vccDepartment vccof vccany vccchange vccin vcclegal
vccname vccor vcc_____ vccwithin vcc_________ vccof vccthe vccchange. vcc- vccAnsweraddress,
vcc30 vccdays
A vccperson vcccharged vccwith vccviolating vccthe vccinsurance vcclaws vccis vccentitled vccto vcca
vcc______ vccand vccat vccleast vcc_____ vccadvance vccnotice vccof vccthe vcchearing. vcc-
vccAnswerhearing, vcc30 vccdays
Licenses vcccan vccbe vccsuspended vccfor vccup vccto vcc______ vccyears. vcc- vccAnswer2
Persons vccwhose vcclicense vcchave vccbeen vccrevoked vcccannot vcc___________ vccfor
vccanother vcclicense vccfor vccat vcc___________ vccyears. vcc- vccAnswerreapply, vcc2
A vcc"risk" vcccan vccbe vccperson, vcc_______, vccor vcc_________ vccthat vccis vccinsured. vcc-
vccAnswerproperty, vccor vccactivity
There vccare vcctwo vcctypes vccof vccrisks. vccThey vccare vcc____________ vccand
vcc__________. vcc- vccAnswerPure vccand vccspeculative
Insurance vcccompanies vccwill vcconly vccinsure vccwhich vcctype vccof vccrisk? vcc-
vccAnswerPure
A vccHazard vccwill vccincrease vccthe vccprobability vcca vccloss vccwill vccoccur? vcc-
vccAnswerYup
Name vccthe vccfour vcctypes vccof vcchazards. vcc- vccAnswerPhysical, vccmoral, vccmorale,
vcclegal
A vcccause vccof vccloss vccis vccalso vccknown vccas vcca vcc________. vcc- vccAnswerPeril
Name vccthe vcc5 vccmethods vccof vcchandling vccrisk. vcc- vccAnswerShare, vcctransfer,
vccavoid, vccreduce, vccretain
When vccan vccindividual vccpurchases vccan vccinsurance vccpolicy vccthey vcc______ vccthe
vccfinancial vccliability. vcc- vccAnswertransfer
Only vccwhich vcctype vccof vccrisk vccis vccinsurable? vcc- vccAnswerIt vccmust vccbe vccdefinite
vccand vccmeasurable, vccdue vccto vccchance, vccstatistically vccpredictable, vccnot
vcccatastrophic vccin vccnature, vccrandomly vccselected vccand vcclarge vccexposure vccto
vccloss, vccnot vccmandatory.
Under vccthe vccconcept vccof vccthe vccLaw vccof vccLarge vccNumbers, vccas vccthe vccsample
vccsize vccincreases vccthe vccprediction vccbecomes vccmore vccor vccless vccaccurate? vcc-
vccAnswerMore
