PSI CA Property and
Casualty Practice
Exams Questions &
Correct Solutions
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 Which form of negotiation is covered under the definition of "transact" as applied to insurance? -
ANSWER Negotiations preliminary to execution
10 Which type of coverage protects against loss caused by earth movement? - ANSWER A stand-alone
Earthquake Insurance policy specifically insuring against loss caused by land subsidence
21 A standard fire insurance policy contains the following details EXCEPT - ANSWER EXCEPT the address
of the insured
22 In the event of receiving notice of a claim or other claim communication, all of the following timelines
are accurate EXCEPT - ANSWER EXCEPT every licensee or claim agent shall transmit notice of the claim to
the insurer in no more than 5 calendar days
23 All of the following are cause for cancellation of an automobile policy EXCEPT - ANSWER EXCEPT
discovery of a criminal record for a felony
24 All of the following are requirements for determining an area that qualifies for Low Cost Automobile
Insurance EXCEPT - ANSWER EXCEPT the number of automobile accidents that occur within the county
25 ALL of the following are examples of open policies EXCEPT - ANSWER EXCEPT agreed value
Casualty Practice
Exams Questions &
Correct Solutions
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 Which form of negotiation is covered under the definition of "transact" as applied to insurance? -
ANSWER Negotiations preliminary to execution
10 Which type of coverage protects against loss caused by earth movement? - ANSWER A stand-alone
Earthquake Insurance policy specifically insuring against loss caused by land subsidence
21 A standard fire insurance policy contains the following details EXCEPT - ANSWER EXCEPT the address
of the insured
22 In the event of receiving notice of a claim or other claim communication, all of the following timelines
are accurate EXCEPT - ANSWER EXCEPT every licensee or claim agent shall transmit notice of the claim to
the insurer in no more than 5 calendar days
23 All of the following are cause for cancellation of an automobile policy EXCEPT - ANSWER EXCEPT
discovery of a criminal record for a felony
24 All of the following are requirements for determining an area that qualifies for Low Cost Automobile
Insurance EXCEPT - ANSWER EXCEPT the number of automobile accidents that occur within the county
25 ALL of the following are examples of open policies EXCEPT - ANSWER EXCEPT agreed value
