PSI PROPERTY AND CASUALTY
PRACTICE TEST – CALIFORNIA
QUESTIONS AND ANSWERS WITH
VERIFIED SOLUTIONS {GRADED A+}
1. How does an "admitted" person differ from a "non-admitted" person, as it
pertains to insurance?
✔✔ An "admitted" person has the right to transact insurance business within the
state, while a "non-admitted" person is not entitled to this action.
2. A claimant can be any of the following EXCEPT?
✔✔ A person who is conducting an investigation of a claim on behalf of an
insurer.
3. When should an insurer provide for the continuous operation of a unit or
division to investigate possible fraudulent claims?
✔✔ If admitted to do business in this state, except those otherwise exempted.
4. According to CIC Section 1711, an organization ceases to exist as an entity
eligible to hold a license EXCEPT?
✔✔ Upon the termination of all contracts.
5. All of the following define insolvency EXCEPT?
✔✔ Revocation of certificate of authority by the Commissioner.
6. As used in the insurance code, the word "shall" is mandatory and the word
"may" is permissive EXCEPT?
✔✔ Unless otherwise apparent from the context.
,7. Which of the following terms refers to any evidence or documentation 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's loss?
✔✔ Proof of claim.
8. When examination 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?
✔✔ 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
✔✔ Life insurance.
10. Which of the following is TRUE regarding continuing education
requirements of an agent or broker?
✔✔ Any licensee shall satisfactorily complete 24 hours of instruction prior to
license renewal.
11. All of the following are included as definitions of "transact" as applied to
insurance EXCEPT?
✔✔ Underwriting.
12. Which group of people is offered additional protection by the Unfair
Practices Act that regulates trade practices in the business of insurance?
✔✔ Survivors of the Holocaust.
, 13. Which of the following can the insurer do if the insured intentionally
conceals or misrepresents a material fact concerning any coverage part?
✔✔ Rescind the contract.
14. While both work with an insurer, how does an "Insurance broker" differ
from an "insurance agent"?
✔✔ The broker does not transact on behalf of an insurer, while the agent does.
15. How can a licensee surrender any license for cancellation?
✔✔ (This answer seems to be missing in your original text — would you like me
to fill it in?)
Let me know if you'd like that last answer completed or want this in printable or
study-guide format.
By submitting written notice or by delivering the license to the commissioner
16. The following are all penalties for unlawfully acting as an insurer without a
certificate of authority EXCEPT? - ANSWER✔✔The individual will be banned
from practicing insurance for a period of 5 years
17. Materiality to be solely determined by which of the following? -
ANSWER✔✔o The probable and reasonable influence of the facts upon the party
to whom the communication is due
18. What is a solicitor employed to do for a policy other than life? -
ANSWER✔✔To aid a property and casualty agent or broker in transacting
insurance.
PRACTICE TEST – CALIFORNIA
QUESTIONS AND ANSWERS WITH
VERIFIED SOLUTIONS {GRADED A+}
1. How does an "admitted" person differ from a "non-admitted" person, as it
pertains to insurance?
✔✔ An "admitted" person has the right to transact insurance business within the
state, while a "non-admitted" person is not entitled to this action.
2. A claimant can be any of the following EXCEPT?
✔✔ A person who is conducting an investigation of a claim on behalf of an
insurer.
3. When should an insurer provide for the continuous operation of a unit or
division to investigate possible fraudulent claims?
✔✔ If admitted to do business in this state, except those otherwise exempted.
4. According to CIC Section 1711, an organization ceases to exist as an entity
eligible to hold a license EXCEPT?
✔✔ Upon the termination of all contracts.
5. All of the following define insolvency EXCEPT?
✔✔ Revocation of certificate of authority by the Commissioner.
6. As used in the insurance code, the word "shall" is mandatory and the word
"may" is permissive EXCEPT?
✔✔ Unless otherwise apparent from the context.
,7. Which of the following terms refers to any evidence or documentation 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's loss?
✔✔ Proof of claim.
8. When examination 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?
✔✔ 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
✔✔ Life insurance.
10. Which of the following is TRUE regarding continuing education
requirements of an agent or broker?
✔✔ Any licensee shall satisfactorily complete 24 hours of instruction prior to
license renewal.
11. All of the following are included as definitions of "transact" as applied to
insurance EXCEPT?
✔✔ Underwriting.
12. Which group of people is offered additional protection by the Unfair
Practices Act that regulates trade practices in the business of insurance?
✔✔ Survivors of the Holocaust.
, 13. Which of the following can the insurer do if the insured intentionally
conceals or misrepresents a material fact concerning any coverage part?
✔✔ Rescind the contract.
14. While both work with an insurer, how does an "Insurance broker" differ
from an "insurance agent"?
✔✔ The broker does not transact on behalf of an insurer, while the agent does.
15. How can a licensee surrender any license for cancellation?
✔✔ (This answer seems to be missing in your original text — would you like me
to fill it in?)
Let me know if you'd like that last answer completed or want this in printable or
study-guide format.
By submitting written notice or by delivering the license to the commissioner
16. The following are all penalties for unlawfully acting as an insurer without a
certificate of authority EXCEPT? - ANSWER✔✔The individual will be banned
from practicing insurance for a period of 5 years
17. Materiality to be solely determined by which of the following? -
ANSWER✔✔o The probable and reasonable influence of the facts upon the party
to whom the communication is due
18. What is a solicitor employed to do for a policy other than life? -
ANSWER✔✔To aid a property and casualty agent or broker in transacting
insurance.
