PSI PROPERTY AND CASUALTY EXAM 2025 WITH
100% ACCURATE SOLUTIONS
What will happen if a house covered by a standard mortgage clause is a total loss? - Precise Answer
✔✔The insurer pays the mortgage according to the mortgagee's interest in the property
Which coverage form would provide coverage for all incoming and outgoing shipments? - Precise Answer
✔✔Annual transit
Tom's Truck Service's vehicle is stolen. The policyholder may obtain coverage for transportation expenses
subject to which of the following limits? - Precise Answer ✔✔$20/day. $600 max
Crunchy Flakes Cereal Company shipped some of its product in faulty containers that caused spoilage.
This resulted in some consumers becoming ill. If the company is sued for this event, it would be an
example of a - Precise Answer ✔✔Product liability claim
What fundamental principle in property insurance holds that when there is an unbroken connection
between occurrence and damage that grows out of the occurrence, then the resultant damage is all a
part of the occurrence? - Precise Answer ✔✔Proximate cause
An agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance
policy. The agent is guilty of - Precise Answer ✔✔rebating
Which of the following could be covered by a HO policy - Precise Answer ✔✔an oriental rug in an on
premises apartment
(HO Does NOT apply to animals, cars, and tenant property)
What is the maximum amount an insurer will pay under the equipment dealers pollution cleanup and
removal extension of an inland marine policy? - Precise Answer ✔✔$10,000 for all expenses incurred
during a 12 month period
, Persons covered under an insurance policy, whether named or not, are known as the - Precise Answer
✔✔insured
The legal process that gives an insurer, after a payment of a loss, the right to seek recovery from a third
party that was responsible for the loss is known as: - Precise Answer ✔✔subrogation
Unfair Claims Settlement Practices - Precise Answer ✔✔advise the insured that if the claim goes to
settlement, the insured would get less that what is currently being offered
According to the loss payment condition in HO policies, losses must be paid within how many days of the
insurer receiving proof of loss? - Precise Answer ✔✔60
A licensee serving in the military is unable to fulfill her CE requirement. What would the licensee have to
do to renew her license? - Precise Answer ✔✔licensee may submit a request to the department to have
requirements and fees waived. The Dept will then determine if the request is permissible
To be eligible for coverage under the National Flood Insurance Program, an insured must live in which
community: - Precise Answer ✔✔Met the minimum floodplain management guidelines
ABC Trucking hauls products for Acme, Inc. as a contract carrier. On one shipment, the driver stopped at
a truck stop for lunch. Leaving the truck in the parking lot, he made certain that the truck was locked
before leaving it. Upon returning to the truck, he discovered that someone had broken into the truck and
stolen the cargo. Is ABC legally liable for this loss? - Precise Answer ✔✔Not liable bc taken reasonable
measures to protect property by locking truck. Since ABC is a contract carrier, not liable. If common
carrier would have been liable.
Which of the following is a mandatory part fo the insurance policy that varies with each individual
policy? - Precise Answer ✔✔Declarations
Erroneous Publishing copied all the material from Angels Inc.'s book. The only changes made by
Erroneous were to rename the title and chapters, put a different cover on it, and distribute it as its own.
Angels Inc. files a claim against Erroneous and seeks damages. Will a commercial general liability policy
cover the claim? - Precise Answer ✔✔No, because that is copyright infringement, not slander from
advertising
100% ACCURATE SOLUTIONS
What will happen if a house covered by a standard mortgage clause is a total loss? - Precise Answer
✔✔The insurer pays the mortgage according to the mortgagee's interest in the property
Which coverage form would provide coverage for all incoming and outgoing shipments? - Precise Answer
✔✔Annual transit
Tom's Truck Service's vehicle is stolen. The policyholder may obtain coverage for transportation expenses
subject to which of the following limits? - Precise Answer ✔✔$20/day. $600 max
Crunchy Flakes Cereal Company shipped some of its product in faulty containers that caused spoilage.
This resulted in some consumers becoming ill. If the company is sued for this event, it would be an
example of a - Precise Answer ✔✔Product liability claim
What fundamental principle in property insurance holds that when there is an unbroken connection
between occurrence and damage that grows out of the occurrence, then the resultant damage is all a
part of the occurrence? - Precise Answer ✔✔Proximate cause
An agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance
policy. The agent is guilty of - Precise Answer ✔✔rebating
Which of the following could be covered by a HO policy - Precise Answer ✔✔an oriental rug in an on
premises apartment
(HO Does NOT apply to animals, cars, and tenant property)
What is the maximum amount an insurer will pay under the equipment dealers pollution cleanup and
removal extension of an inland marine policy? - Precise Answer ✔✔$10,000 for all expenses incurred
during a 12 month period
, Persons covered under an insurance policy, whether named or not, are known as the - Precise Answer
✔✔insured
The legal process that gives an insurer, after a payment of a loss, the right to seek recovery from a third
party that was responsible for the loss is known as: - Precise Answer ✔✔subrogation
Unfair Claims Settlement Practices - Precise Answer ✔✔advise the insured that if the claim goes to
settlement, the insured would get less that what is currently being offered
According to the loss payment condition in HO policies, losses must be paid within how many days of the
insurer receiving proof of loss? - Precise Answer ✔✔60
A licensee serving in the military is unable to fulfill her CE requirement. What would the licensee have to
do to renew her license? - Precise Answer ✔✔licensee may submit a request to the department to have
requirements and fees waived. The Dept will then determine if the request is permissible
To be eligible for coverage under the National Flood Insurance Program, an insured must live in which
community: - Precise Answer ✔✔Met the minimum floodplain management guidelines
ABC Trucking hauls products for Acme, Inc. as a contract carrier. On one shipment, the driver stopped at
a truck stop for lunch. Leaving the truck in the parking lot, he made certain that the truck was locked
before leaving it. Upon returning to the truck, he discovered that someone had broken into the truck and
stolen the cargo. Is ABC legally liable for this loss? - Precise Answer ✔✔Not liable bc taken reasonable
measures to protect property by locking truck. Since ABC is a contract carrier, not liable. If common
carrier would have been liable.
Which of the following is a mandatory part fo the insurance policy that varies with each individual
policy? - Precise Answer ✔✔Declarations
Erroneous Publishing copied all the material from Angels Inc.'s book. The only changes made by
Erroneous were to rename the title and chapters, put a different cover on it, and distribute it as its own.
Angels Inc. files a claim against Erroneous and seeks damages. Will a commercial general liability policy
cover the claim? - Precise Answer ✔✔No, because that is copyright infringement, not slander from
advertising
