PSI personal lines exam
Questions and Answers
Updated 2026
which of the following is the type of insurance the government may step in to provide that is
NOT ordinarily available for private insuerers - Answer residential market
which of the following describes an insurer that meets the insurance department's
standards and is authorized to do business in the state - Answer admitted
in which of the following types of insurance organizations are profits returned to the
insureds in the form of divendends - Answer mutuals
which of the following is not authorized to transact insurance in the state - Answer non
admitted insurer
all of the following sell insurance in the residential market EXCEPT - Answer disability
insurance
what type of insurer is owned by its policy holders - Answer mutual companies
what is another way of describing the structure of a mutual insurance company - Answer
participating
a participating comapny headquartered in guam authorized to do business in your state
would be described as which company - Answer an admitted, foreign mutal company
purchasing insurance that is unavailable in your state from a non admitted comapny would
be what kind of transaction - Answer surplus lines
, what part of legal contract refers to an exchhange of value - Answer consideration
all of the following are considered to be incompentent to enter into a contract EXCEPT -
Answer someone who is incarcerated
what is the term for a proposal made by one of the potential parties to contract - Answer
offer
when one party of a contract has greater power over the other party in a drafting the
contract, what type of contract is it - Answer contract of adhension
some insureds pay insurance premiums and never have a covered loss, while others may
have a catastrophic event that pays much more than a lifetime of premiums. As a result,
insurance contracts are considered to be - Answer aleatory
which of the following best defines a personal insurance contract - Answer the insurance
contract is designed to transfer risk from the insured to the insurer
if a covered loss occurs, the insured must provide proof of loss, and the insurer must
respond within a specified time period following the loss. this is because insurance contracts
are wich type of contract - Answer conditional
when the court resolves any ambiguity in policy wording in favor of the insured, is is because
of the - Answer doctrine of resonable expectations
with regard to property insurance, consideration is the - Answer payment of premium by the
insured in return for the promise to pay covered claims
all of the following are elements of a valid contract EXCEPT - Answer provisions
Questions and Answers
Updated 2026
which of the following is the type of insurance the government may step in to provide that is
NOT ordinarily available for private insuerers - Answer residential market
which of the following describes an insurer that meets the insurance department's
standards and is authorized to do business in the state - Answer admitted
in which of the following types of insurance organizations are profits returned to the
insureds in the form of divendends - Answer mutuals
which of the following is not authorized to transact insurance in the state - Answer non
admitted insurer
all of the following sell insurance in the residential market EXCEPT - Answer disability
insurance
what type of insurer is owned by its policy holders - Answer mutual companies
what is another way of describing the structure of a mutual insurance company - Answer
participating
a participating comapny headquartered in guam authorized to do business in your state
would be described as which company - Answer an admitted, foreign mutal company
purchasing insurance that is unavailable in your state from a non admitted comapny would
be what kind of transaction - Answer surplus lines
, what part of legal contract refers to an exchhange of value - Answer consideration
all of the following are considered to be incompentent to enter into a contract EXCEPT -
Answer someone who is incarcerated
what is the term for a proposal made by one of the potential parties to contract - Answer
offer
when one party of a contract has greater power over the other party in a drafting the
contract, what type of contract is it - Answer contract of adhension
some insureds pay insurance premiums and never have a covered loss, while others may
have a catastrophic event that pays much more than a lifetime of premiums. As a result,
insurance contracts are considered to be - Answer aleatory
which of the following best defines a personal insurance contract - Answer the insurance
contract is designed to transfer risk from the insured to the insurer
if a covered loss occurs, the insured must provide proof of loss, and the insurer must
respond within a specified time period following the loss. this is because insurance contracts
are wich type of contract - Answer conditional
when the court resolves any ambiguity in policy wording in favor of the insured, is is because
of the - Answer doctrine of resonable expectations
with regard to property insurance, consideration is the - Answer payment of premium by the
insured in return for the promise to pay covered claims
all of the following are elements of a valid contract EXCEPT - Answer provisions
