PSI CA Property and Casualty Practice Exam 2024/2025
Solved 100% Correct
1 Can a lender, as a condition of making a loan, require that any insurance be placed
through a particular insurance agent or broker? - -The loan recipient may always
select a particular agent or broker of their choosing
2 A claimant can be any of the following EXCEPT - -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 - -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? - -It requires a separate charge or fee
5 What is the method used for placing business with the California Automobile Assigned
Risk Program? - -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? - -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 - -EXCEPT to pay medical bills
8 What is the purpose of the experience modification system in the California workers'
compensation experience rating system? - -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? - -Negotiations preliminary to execution
, PSI CA Property and Casualty Practice Exam 2024/2025
Solved 100% Correct
10 Which type of coverage protects against loss caused by earth movement? - -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?
- -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? - -Expectant or
contingent interest does NOT constitute insurable interest
13 "Person" means all of the following EXCEPT - -EXCEPT an organizational trust
14 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.
15 Except in a case where the property is being held as a carrier or depository, what is the
insurable interest is measured by? - -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 - -EXCEPT underwriting
17 At which point is a person licensed as a broker-agent deemed to be acting as an
insurance agent? - -when a notice of appointment is filed with the insurance
commissioner
18 How may a license be surrendered by the insuree, or terminated by the employer? -
-Personally delivering the license to the insurance commissioner, or by written
notice form the employer.
Solved 100% Correct
1 Can a lender, as a condition of making a loan, require that any insurance be placed
through a particular insurance agent or broker? - -The loan recipient may always
select a particular agent or broker of their choosing
2 A claimant can be any of the following EXCEPT - -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 - -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? - -It requires a separate charge or fee
5 What is the method used for placing business with the California Automobile Assigned
Risk Program? - -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? - -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 - -EXCEPT to pay medical bills
8 What is the purpose of the experience modification system in the California workers'
compensation experience rating system? - -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? - -Negotiations preliminary to execution
, PSI CA Property and Casualty Practice Exam 2024/2025
Solved 100% Correct
10 Which type of coverage protects against loss caused by earth movement? - -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?
- -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? - -Expectant or
contingent interest does NOT constitute insurable interest
13 "Person" means all of the following EXCEPT - -EXCEPT an organizational trust
14 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.
15 Except in a case where the property is being held as a carrier or depository, what is the
insurable interest is measured by? - -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 - -EXCEPT underwriting
17 At which point is a person licensed as a broker-agent deemed to be acting as an
insurance agent? - -when a notice of appointment is filed with the insurance
commissioner
18 How may a license be surrendered by the insuree, or terminated by the employer? -
-Personally delivering the license to the insurance commissioner, or by written
notice form the employer.
