PSI Property and Casualty Practice Test - California EXAM Updated Questions with 100% Correct Answers | Latest & Verified

1. How does an "admitted" person differ from a "non-admitted" person, as it pertains to insurance? - CORRECT ANSWER-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. 2. A claimant can be any of the following EXCEPT? - CORRECT ANSWER-o a person who is conducting an investigation of a claim on behalf of an insurer. 3. When should an insurer provide for the continuous operation of a unit or division to investigate possible fraudulent claims? - CORRECT ANSWER-o If admitted to do business in this state, except those otherwise exempted. According to CIC Section 1711, an organization ceases to exist as an entity eligible to hold a license EXCEPT? - CORRECT ANSWER-o Upon the termination of all contracts 5. All of the following define insolvency EXCEPT? - CORRECT ANSWER-o revocation of certificate of authority by the commissioner. 6. As used in the insurance code, the word "shall" is mandatory and the word "may" is permissive EXCEPT? - CORRECT ANSWER-o unless otherwise apparent from the context. 7. Which of the following terms refers to any evidence or documentation in the possession of the insurer that provides any evidence of a claim and that reasonably supports the magnitude or the amount of the claimant loss? - CORRECT ANSWER-o Poof of claim 8. When examination of an insurer shows the insurer to be insolvent and a danger to the public, wh