1 Exampromax - Stuvia US
PSI Property and Casualty Practice Test -
California Questions and Answers 100%
Correct Answers Already Graded A+
Q: 1. How does an "admitted" person differ from a "non-admitted" person,
as it pertains to insurance?
Ans: o An "admitted" person has the right to transact insurance business within
the state, while a "non-admitted" person is not entitled to this action.
Q: 2. A claimant can be any of the following EXCEPT?
Exampromax - Stuvia US
Ans: o a person who is conducting an investigation of a claim on behalf of an
insurer.
Q: 3. When should an insurer provide for the continuous operation of a
unit or division to investigate possible fraudulent claims?
Ans: o If admitted to do business in this state, except those otherwise exempted.
Q: According to CIC Section 1711, an organization ceases to exist as an
entity eligible to hold a license EXCEPT?
Ans: o Upon the termination of all contracts
Q: 5. All of the following define insolvency EXCEPT?
Ans: o revocation of certificate of authority by the commissioner.
Q: 6. As used in the insurance code, the word "shall" is mandatory and the
word "may" is permissive EXCEPT?
Ans: o unless otherwise apparent from the context.
Q: 7. Which of the following terms refers to any evidence or
documentation in the possession of the insurer that provides any evidence of
, 2 Exampromax - Stuvia US
a claim and that reasonably supports the magnitude or the amount of the
claimant loss?
Ans: o Poof of claim
Q: 8. When examination of an insurer shows the insurer to be insolvent
and a danger to the public, which authority is granted to the Commissioner
by the CIC?
Ans: o The commissioner may take possession of offices, books and property
immediately without court order.
Q: 9. An insurance agent is a person who transacts all of the following
types of insurance EXCEPT
Ans: o Life insurance
Exampromax - Stuvia US
Q: 10. Which of the following is TRUE regarding continuing education
requirements of an agent or broker?
Ans: o Any licensee shall satisfactorily complete 24 hours of instruction prior to
license renewal.
Q: 11. All of the following are included as definitions of "transact" as
applied to insurance EXCEPT?
Ans: o Underwriting
Q: 12. Which group of people is offered additional protection by the Unfair
Practices Act that regulates trade practices in the business of insurance?
Ans: o Survivors of the Holocaust
Q: 13. Which of the following can the insurer do if the insured intentionally
conceals or misrepresents a material fact concerning any coverage part?
Ans: o Rescind the contract
Q: 14. While both work with an insurer, how does an "Insurance broker"
differ from an "insurance agent"?
, 3 Exampromax - Stuvia US
Ans: o The broker does not transact on behalf of an insurer, while the agent
does.
Q: 15. How can a licensee surrender any license for cancellation?
Ans: o By submitting written notice or by delivering the license to the
commissioner
Q: 16. The following are all penalties for unlawfully acting as an insurer
without a certificate of authority EXCEPT?
Ans: The individual will be banned from practicing insurance for a period of 5
years
Q: 17. Materiality to be solely determined by which of the following?
Ans: o The probable and reasonable influence of the facts upon the party to
Exampromax - Stuvia US
whom the communication is due
Q: 18. What is a solicitor employed to do for a policy other than life?
Ans: To aid a property and casualty agent or broker in transacting insurance.
Q: 19. ALL of the following are TRUE regarding the process to change the
California Code of Regulations EXCEPT?
Ans: o the Office of Administrative Law (OAL) may substitute its own
judgment for that of the rulemaking agency.
Q: 20. How may a license be surrendered by the insuree, or terminated by
the employer?
Ans: o Personally, delivering the license to the insurance commissioner, or by
written notice from the employer.
Q: 21. All of the following are to be specified in an insurance policy
EXCEPT?
Ans: o The financial rating of the insured
Q: 22. When may a representation be altered or withdrawn?
PSI Property and Casualty Practice Test -
California Questions and Answers 100%
Correct Answers Already Graded A+
Q: 1. How does an "admitted" person differ from a "non-admitted" person,
as it pertains to insurance?
Ans: o An "admitted" person has the right to transact insurance business within
the state, while a "non-admitted" person is not entitled to this action.
Q: 2. A claimant can be any of the following EXCEPT?
Exampromax - Stuvia US
Ans: o a person who is conducting an investigation of a claim on behalf of an
insurer.
Q: 3. When should an insurer provide for the continuous operation of a
unit or division to investigate possible fraudulent claims?
Ans: o If admitted to do business in this state, except those otherwise exempted.
Q: According to CIC Section 1711, an organization ceases to exist as an
entity eligible to hold a license EXCEPT?
Ans: o Upon the termination of all contracts
Q: 5. All of the following define insolvency EXCEPT?
Ans: o revocation of certificate of authority by the commissioner.
Q: 6. As used in the insurance code, the word "shall" is mandatory and the
word "may" is permissive EXCEPT?
Ans: o unless otherwise apparent from the context.
Q: 7. Which of the following terms refers to any evidence or
documentation in the possession of the insurer that provides any evidence of
, 2 Exampromax - Stuvia US
a claim and that reasonably supports the magnitude or the amount of the
claimant loss?
Ans: o Poof of claim
Q: 8. When examination of an insurer shows the insurer to be insolvent
and a danger to the public, which authority is granted to the Commissioner
by the CIC?
Ans: o The commissioner may take possession of offices, books and property
immediately without court order.
Q: 9. An insurance agent is a person who transacts all of the following
types of insurance EXCEPT
Ans: o Life insurance
Exampromax - Stuvia US
Q: 10. Which of the following is TRUE regarding continuing education
requirements of an agent or broker?
Ans: o Any licensee shall satisfactorily complete 24 hours of instruction prior to
license renewal.
Q: 11. All of the following are included as definitions of "transact" as
applied to insurance EXCEPT?
Ans: o Underwriting
Q: 12. Which group of people is offered additional protection by the Unfair
Practices Act that regulates trade practices in the business of insurance?
Ans: o Survivors of the Holocaust
Q: 13. Which of the following can the insurer do if the insured intentionally
conceals or misrepresents a material fact concerning any coverage part?
Ans: o Rescind the contract
Q: 14. While both work with an insurer, how does an "Insurance broker"
differ from an "insurance agent"?
, 3 Exampromax - Stuvia US
Ans: o The broker does not transact on behalf of an insurer, while the agent
does.
Q: 15. How can a licensee surrender any license for cancellation?
Ans: o By submitting written notice or by delivering the license to the
commissioner
Q: 16. The following are all penalties for unlawfully acting as an insurer
without a certificate of authority EXCEPT?
Ans: The individual will be banned from practicing insurance for a period of 5
years
Q: 17. Materiality to be solely determined by which of the following?
Ans: o The probable and reasonable influence of the facts upon the party to
Exampromax - Stuvia US
whom the communication is due
Q: 18. What is a solicitor employed to do for a policy other than life?
Ans: To aid a property and casualty agent or broker in transacting insurance.
Q: 19. ALL of the following are TRUE regarding the process to change the
California Code of Regulations EXCEPT?
Ans: o the Office of Administrative Law (OAL) may substitute its own
judgment for that of the rulemaking agency.
Q: 20. How may a license be surrendered by the insuree, or terminated by
the employer?
Ans: o Personally, delivering the license to the insurance commissioner, or by
written notice from the employer.
Q: 21. All of the following are to be specified in an insurance policy
EXCEPT?
Ans: o The financial rating of the insured
Q: 22. When may a representation be altered or withdrawn?
