PSI CA PROPERTY AND CASUALTY PRACTICE EXAM

1 Can a lender, as a condition of making a loan, require that any insurance be placed through a particular insurance agent or broker? - Answer- The loan recipient may always select a particular agent or broker of their choosing 2 A claimant can be any of the following EXCEPT - Answer- 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 - Answer- 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? - Answer- It requires a separate charge or fee 5 What is the method used for placing business with the California Automobile Assigned Risk Program? - Answer- 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? - Answer- 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 - Answer- EXCEPT to pay medical bills 8 What is the purpose of the experience modification system in the California workers' compensation experience rating system? - Answer- It expresses a particular company's loss or claims history as a percentage to all other companies in the industry 9 W