PSI Property and Casualty Final Exam 2025

All of the following are authorized activities for the limited lines automobile insurance agents EXCEPT if the agent - Correct Ans-Charges and collects a brokers fee for service Which of the following descries a contract of reinsurance? - Correct Ans-A first insurer issues insurance to compensate another insurer for losses on contracts issued by that second insurer A personal lines licensee is an agent-broker who is able to transact coverage for all the following EXCEPT - Correct Ans-Personal Aircraft All of the following are requirements for determining an area that qualifies for Low Cost Automobile Insurance EXCEPT - Correct Ans-The number of automobile accidents that occur within the county What criteria must a person meet in order to be qualified to purchase a good driver discount policy? - Correct Ans-Being licensed to drive a motor vehicle for the previous 3 years and has not had more than 1 violation point as determined by the CIC Which of the following must be prominently displayed so that it can be readily inspected on the licensee? - Correct Ans-Currency and capacity What is the primary function of the California Automotive Assigned Risk Plan? CARRP - Correct Ans-To put people who have trouble obtaining insurance in touch with insurers who may be required by law to insure them. Which is NOT a duty of the Workers Compensation Bureau? - Correct Ans-Determine which claims are approved and which are denied. When can a person who sells real property require the use of a specific insurance agent, broker or solicitor? - Correct Ans-A buyer is always ale to choose their insurance representative At which point is a person licensed as a broker-agent deemed to be acting as an insurance agent? - Correct Ans-when a notice of appointment is filed with the insurance commissioner Who must be able to inspect records of insurance transactions made available by agent-brokers at any time? - Correct Ans-The Insurance commissioner Where must the address be printed for the principal office that is required for every broker agent and resident insurance casualty broker-agent? - Correct Ans-Applications for license and renewals How many classes of insurance are defined under California insurance law including "miscellaneous" and "reserved"? - Correct Ans-There are a total of 20 classes of insurance under CA insurance law with sub classes When can a rate be denied by the Department? - Correct Ans-when it is inadequate and excessive A "personal lines" agent or broker is allowed to transact what type of insurance coverage? - Correct Ans-Noncommercial automobile and residential property What is the required rate discount under a good driver discount policy? - Correct Ans-20% below the rate the insured would have been charged otherwise for the same coverage Which condition is NOT required to be met for a surplus line broker to advise any home state insured or applicate that coverage has been, or will be obtained from a nonadmitted insurer? - Correct Ans-An annual payment as been received by the insurer? Who is authorized to adjust or pay claims in excess of an amount determined by the comissioner? - Correct Ans-The managing general agent In order for an insurer to contract with the state compensation insurance fund it must meet all of the following criteria EXCEPT - Correct Ans-The insurer has met all ration requirements for risk based capital RBC In conducting the business and affairs of the state compensation insurance fund it must meet all of the following criteria EXCEPT - Correct Ans-Sell life insurance covering compensation benefits Who is able to place business through the California Automobile Assessed Risk Program? - Correct Ans-Only agent/brokers licensed in fire and casualty who have also been certified through CAARP Under the California Vehicle Code all of the following are acceptable to satisfy the financial responsibility requirement EXCEPT - Correct Ans-A company with an escrow account that is licensed to do business in California Which two pieces of information are required to be on all business cards, printed quotes, and printed advertisements distributed exclusively within the state? - Correct Ans-The license number of the licensee and the word "insurance" All of the following are part of the Minimum Liability Insurance Requirements for Private Passenger Vehicles EXCEPT - Correct Ans-5k for medical services The Managing General Agent negotiates and binds ceding insurance on behalf of whom? - Correct Ans-The insurer All of the following are designed as priva