PSI CA Property and Casualty Practice Examination
Exam LATEST Test and Exam question and answers
latest update 2026 RATED A+
1 Can a lender, as a condition of making a loan, require that any insurance be placed through a
particular insurance agent or broker? - CORRECT ANSWERS The loan recipient may always
select a particular agent or broker of their choosing
2 A claimant can be any of the following EXCEPT - CORRECT ANSWERS EXCEPT a person who
is conducting an investigation of a claim on behalf of an insurer
3 All of the following are to be specified in an insurance policy EXCEPT - CORRECT ANSWERS
EXCEPT the financial rating of the insured
4 Which of the following provisions of free insurance offered as an incentive to purchase or rent
property is TRUE? - CORRECT ANSWERS It requires a separate charge or fee
5 What is the method used for placing business with the California Automobile Assigned Risk Program? -
CORRECT ANSWERS The percentage of CAARP policies required is equal to the percentage of
regular insurance policies the insurer has issued within the State
6 Whether admitted or nonadmitted, how does a "foreign" insurer differ from an "alien" or "domestic"
insurer? - CORRECT ANSWERS A "foreign" insurer is organized under the laws of another
state within the United States
7 All of the following are reasons employers liability insurance is needed in addition to workers'
compensation insurance EXCEPT - CORRECT ANSWERS EXCEPT to pay medical bills
, 8 What is the purpose of the experience modification system in the California workers' compensation
experience rating system? - CORRECT ANSWERS It expresses a particular company's loss or
claims history as a percentage to all other companies in the industry
9 Which form of negotiation is covered under the definition of "transact" as applied to insurance? -
CORRECT ANSWERS Negotiations preliminary to execution
10 Which type of coverage protects against loss caused by earth movement? - CORRECT ANSWERS
A stand-alone Earthquake Insurance policy specifically insuring against loss caused by land subsidence
11 Which circumstances in a pretext interview determine if the questions are permissible? - CORRECT
ANSWERS When an insured is consulted by a person who hides his true identity on purpose
when fraud for a claim is suspected
12 Which is TRUE regarding expectant or contingent interest? - CORRECT ANSWERS
Expectant or contingent interest does NOT constitute insurable interest
13 "Person" means all of the following EXCEPT - CORRECT ANSWERS EXCEPT an
organizational trust
14 Which of the following is TRUE regarding continuing education requirements of an agent or broker? -
CORRECT ANSWERS Any licensee shall satisfactorily complete 24 hours of instruction prior to
license renewal.
15 Except in a case where the property is being held as a carrier or depository, what is the insurable
interest is measured by? - CORRECT ANSWERS EXCEPT The extent to which the insured would
be damnified by loss or injury to the property
16 All of the following are included as definitions of "transact" as applied to insurance EXCEPT -
CORRECT ANSWERS EXCEPT underwriting
Exam LATEST Test and Exam question and answers
latest update 2026 RATED A+
1 Can a lender, as a condition of making a loan, require that any insurance be placed through a
particular insurance agent or broker? - CORRECT ANSWERS The loan recipient may always
select a particular agent or broker of their choosing
2 A claimant can be any of the following EXCEPT - CORRECT ANSWERS EXCEPT a person who
is conducting an investigation of a claim on behalf of an insurer
3 All of the following are to be specified in an insurance policy EXCEPT - CORRECT ANSWERS
EXCEPT the financial rating of the insured
4 Which of the following provisions of free insurance offered as an incentive to purchase or rent
property is TRUE? - CORRECT ANSWERS It requires a separate charge or fee
5 What is the method used for placing business with the California Automobile Assigned Risk Program? -
CORRECT ANSWERS The percentage of CAARP policies required is equal to the percentage of
regular insurance policies the insurer has issued within the State
6 Whether admitted or nonadmitted, how does a "foreign" insurer differ from an "alien" or "domestic"
insurer? - CORRECT ANSWERS A "foreign" insurer is organized under the laws of another
state within the United States
7 All of the following are reasons employers liability insurance is needed in addition to workers'
compensation insurance EXCEPT - CORRECT ANSWERS EXCEPT to pay medical bills
, 8 What is the purpose of the experience modification system in the California workers' compensation
experience rating system? - CORRECT ANSWERS It expresses a particular company's loss or
claims history as a percentage to all other companies in the industry
9 Which form of negotiation is covered under the definition of "transact" as applied to insurance? -
CORRECT ANSWERS Negotiations preliminary to execution
10 Which type of coverage protects against loss caused by earth movement? - CORRECT ANSWERS
A stand-alone Earthquake Insurance policy specifically insuring against loss caused by land subsidence
11 Which circumstances in a pretext interview determine if the questions are permissible? - CORRECT
ANSWERS When an insured is consulted by a person who hides his true identity on purpose
when fraud for a claim is suspected
12 Which is TRUE regarding expectant or contingent interest? - CORRECT ANSWERS
Expectant or contingent interest does NOT constitute insurable interest
13 "Person" means all of the following EXCEPT - CORRECT ANSWERS EXCEPT an
organizational trust
14 Which of the following is TRUE regarding continuing education requirements of an agent or broker? -
CORRECT ANSWERS Any licensee shall satisfactorily complete 24 hours of instruction prior to
license renewal.
15 Except in a case where the property is being held as a carrier or depository, what is the insurable
interest is measured by? - CORRECT ANSWERS EXCEPT The extent to which the insured would
be damnified by loss or injury to the property
16 All of the following are included as definitions of "transact" as applied to insurance EXCEPT -
CORRECT ANSWERS EXCEPT underwriting
