PSI PRACTICE EXAM PERSONAL LINES
BROKER-AGENT 60 questions and answers
2025\2026 A+ Grade
WHEN AN AGENT TRIES TO CONVINCE A POLICYHOLDER TO REPLACE AN EXISTING POLICY TO BUY
ANOTHER ONE, WHAT ARE THEY PRACTICING?
- correct answer MISREPRESENTATION
WHICH OF THE FOLLOWING IS A FORM OF INSURANCE COMPANY ORGANIZATION THAT CONSISTS OF
MEMBERS WHO SHARE LOSSES WITH EACHOTHER?
- correct answer RECIPROCAL
WHAT POLICY PROVISION SPECIFIES A CERTAIN VALUE THAT WILL MEET THE COINSURANCE
REQUIREMENT?
- correct answer AGREED VALUE
ALL OF THE FOLLOWING ARE CORRECT FOR EXCESS LINES CARRIERS EXCEPT
- correct answer THEY OFFER BETTER CONTRACTS AT LOWER RATES.
HOW MANY BUSINESS DAYS DOES A BUSINESS HAVE TO HONOR A REQUESTED EMAIL OPT-OUT
ACCORDING TO THE 2003 CAN-SPAM, ACT?
- correct answer 10
WHICH OF THE FOLLOWING IS ONE OF THE OBJECTIVES OF THE TERRORISM RISK INSURANCE ACT OF
2002?
- correct answer IT LIMITS THE EXPOSURE OF INDIVIDUAL INSURERS AND THE INSURANCE INDUSTRY AS
A WHOLE.
, ALL OF THE FOLLOWING ARE EXAMPLES OF CONDUCT OF AN AGENT THAT IS REGULATED BY
DEPARTMENT OF INSURANCE EXCEPT
- correct answer MISAPPROPRIATION OR CONVERSION OF FUNDS BY AN INSURANCE AGENT
THE GRAMM-LEACH-BLILEY ACT WAS ENACTED TO PROTECT CONSUMER'S RIGHT TO PRIVACY AND
MADE MANDATORY WHICH OF THE FOLLOWING?
- correct answer FINANCIAL INSTITUTIONS MUST HAVE A PRIVACY POLICY IN PLACE
WHICH OF THE FOLLOWING IS EXEMPT FROM THE TELEMARKETING SALES RULE THAT ESTABLISHED THE
NATIONAL DO NOT CALL REGISTRY?
- correct answer CALLS FROM OR ON BEHALF OF POLITICAL CAMPAIGNS OR ORGANIZATIONS AND
CHARITIES.
THE FAIR CREDIT REPORTING ACT PERMITS CONSUMER REPORTING AGENCIES TO INCLUDE APPLICANT
INFORMATION ABOUT BANKRUPTCIES MORE THAN 10 YEARS OLD UNDER WHICH OF THE FOLLOWING
CIRCUMSTANCES:
- correct answer THE APPLICANT IS SEEKING A TRANSACTION GREATER THAN $150,000.
WHAT IS AN EXAMPLE OF DIRECT LOSS?
- correct answer A HOUSE BEING DAMAGED IN A SEVERE WINDSTORM.
WHICH OF THE FOLLOWING TYPES OF CRIME BEST DESCRIBE THE UNLAWFUL ACT OF TAKING PROPERTY
FROM THE CARE AND CUSTODY OF ANOTHER PERSON WHILE THREATENING TO CAUSE BODILY HARM?
- correct answer ROBBERY
ALL THE FOLLOWING DEMONSTRATE INSURABLE INTEREST EXCEPT?
- correct answer INSURING AN ENGAGEMENT RING GIVEN TO A FIANCEE.
ALL THE FOLLOWING ARE TRUE REGARDING BINDERS EXCEPT:
- correct answer A BINDER GUARENTEES THAT A POLICY WILL BE ISSUED.
ALL OF THE FOLLOWING ARE USED TO ESTABLISH NEGLIGENCE EXCEPT:
- correct answer COST OF DAMAGES
BROKER-AGENT 60 questions and answers
2025\2026 A+ Grade
WHEN AN AGENT TRIES TO CONVINCE A POLICYHOLDER TO REPLACE AN EXISTING POLICY TO BUY
ANOTHER ONE, WHAT ARE THEY PRACTICING?
- correct answer MISREPRESENTATION
WHICH OF THE FOLLOWING IS A FORM OF INSURANCE COMPANY ORGANIZATION THAT CONSISTS OF
MEMBERS WHO SHARE LOSSES WITH EACHOTHER?
- correct answer RECIPROCAL
WHAT POLICY PROVISION SPECIFIES A CERTAIN VALUE THAT WILL MEET THE COINSURANCE
REQUIREMENT?
- correct answer AGREED VALUE
ALL OF THE FOLLOWING ARE CORRECT FOR EXCESS LINES CARRIERS EXCEPT
- correct answer THEY OFFER BETTER CONTRACTS AT LOWER RATES.
HOW MANY BUSINESS DAYS DOES A BUSINESS HAVE TO HONOR A REQUESTED EMAIL OPT-OUT
ACCORDING TO THE 2003 CAN-SPAM, ACT?
- correct answer 10
WHICH OF THE FOLLOWING IS ONE OF THE OBJECTIVES OF THE TERRORISM RISK INSURANCE ACT OF
2002?
- correct answer IT LIMITS THE EXPOSURE OF INDIVIDUAL INSURERS AND THE INSURANCE INDUSTRY AS
A WHOLE.
, ALL OF THE FOLLOWING ARE EXAMPLES OF CONDUCT OF AN AGENT THAT IS REGULATED BY
DEPARTMENT OF INSURANCE EXCEPT
- correct answer MISAPPROPRIATION OR CONVERSION OF FUNDS BY AN INSURANCE AGENT
THE GRAMM-LEACH-BLILEY ACT WAS ENACTED TO PROTECT CONSUMER'S RIGHT TO PRIVACY AND
MADE MANDATORY WHICH OF THE FOLLOWING?
- correct answer FINANCIAL INSTITUTIONS MUST HAVE A PRIVACY POLICY IN PLACE
WHICH OF THE FOLLOWING IS EXEMPT FROM THE TELEMARKETING SALES RULE THAT ESTABLISHED THE
NATIONAL DO NOT CALL REGISTRY?
- correct answer CALLS FROM OR ON BEHALF OF POLITICAL CAMPAIGNS OR ORGANIZATIONS AND
CHARITIES.
THE FAIR CREDIT REPORTING ACT PERMITS CONSUMER REPORTING AGENCIES TO INCLUDE APPLICANT
INFORMATION ABOUT BANKRUPTCIES MORE THAN 10 YEARS OLD UNDER WHICH OF THE FOLLOWING
CIRCUMSTANCES:
- correct answer THE APPLICANT IS SEEKING A TRANSACTION GREATER THAN $150,000.
WHAT IS AN EXAMPLE OF DIRECT LOSS?
- correct answer A HOUSE BEING DAMAGED IN A SEVERE WINDSTORM.
WHICH OF THE FOLLOWING TYPES OF CRIME BEST DESCRIBE THE UNLAWFUL ACT OF TAKING PROPERTY
FROM THE CARE AND CUSTODY OF ANOTHER PERSON WHILE THREATENING TO CAUSE BODILY HARM?
- correct answer ROBBERY
ALL THE FOLLOWING DEMONSTRATE INSURABLE INTEREST EXCEPT?
- correct answer INSURING AN ENGAGEMENT RING GIVEN TO A FIANCEE.
ALL THE FOLLOWING ARE TRUE REGARDING BINDERS EXCEPT:
- correct answer A BINDER GUARENTEES THAT A POLICY WILL BE ISSUED.
ALL OF THE FOLLOWING ARE USED TO ESTABLISH NEGLIGENCE EXCEPT:
- correct answer COST OF DAMAGES
