PSI CA Property & Casualty Practice Test California Exam Questions with Answers .

PSI CA Property & Casualty Practice Test 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. 2. A claimant can be any of the following EXCEPT? - ANS 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? - ANS 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? - ANS o Upon the termination of all contracts 5. All of the following define insolvency EXCEPT? - ANS 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? - ANS 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? - ANS o Poof of claim 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. 9. An insurance agent is a person who transacts all of the following types of insurance EXCEPT - ANS o Life insurance 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. 11. All of the following are included as definitions of "transact" as applied to insurance EXCEPT? - ANS o Underwriting 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 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 14. While both work with an insurer, how does an "Insurance broker" differ from an "insurance agent"? - ANS o The broker does not transact on behalf of an insurer, while the agent does. 15. How can a licensee surrender any license for cancellation? - ANS o By submitting written notice or by delivering the license to the commissioner 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 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 whom the communication is due 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. 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. 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. 21. All of the following are to be specified in an insurance policy EXCEPT? - ANS o The financial rating of the insured 22. When may a representation be altered or withdrawn? - ANS o Before the insurance is effected. 23. Which of the following provisions of free insurance offered as an incentive to purchase or rent property is TRUE? - ANS o It requires a separate charge or fee. 24. Which circumstances in a pretext interview determine if the questions are permissible? - ANS o When an insured is consulted by a person who hides his true identity on purpose when fraud for a claim is suspected. 25. All of the following are examples of misrepresentations that may not be made by an insurer, officer or agent thereof or an insurance broker or solicitor EXCEPT - ANS o the specific contract language. 26. Which of the following is TRUE regarding the application and renewal of the limited lines automobile insurance agent license? - ANS o The fees and process are the same as for a personal lines licensee.