PSI CA Property & Casualty Practice
Test Questions And Correct Answers
Which bwould bpermit ban binsurer bto bescape binsolvency? b- bcorrect
banswers✔✔possession bof bassets bequal bto bthe btotal bpaid-in bcapital bafter ball
bliabilities band breinsurance
When bshould ban binsurer bprovide bfor bthe bcontinuous boperation bof ba bunit bor
bdivision bto binvestigate bpossible bfraudulent bclaims? b- bcorrect banswers✔✔if badmitted
bto bdo bbusiness bin bthis btate, bexcept bthose botherwise bexempted
What bis bthe bmaximum bfine bfor ba bperson bwho btransacts binsurance bwithout ba bvalid
blicense? b- bcorrect banswers✔✔$50,000 band/or bimprisonment bfor ba bperiod bnot
bexceeding bone byear.
Which bof bthe bfollowing bis bTRUE bregarding bnon badmitted binsurers? b- bcorrect
banswers✔✔acting bas ban bagent bfor ba bnon badmitted binsurer bis bconsidered ba
bmisdemeanor
Which bcircumstances bin ba bpretext binterview bdetermine bif bthe bquestions bare
bpermissible? b- bcorrect banswers✔✔when ban binsured bis bconsulted bby ba bperson
bwho bhides bhis btrue bidentity bon bpurpose bwhen bfraud bfor ba bclaim bis bsuspected
A bpolicy bshall bspecify ball bof bthe bfollowing bEXCEPT b- bcorrect banswers✔✔the
bmethod bin bwhich bthe bcoverage bamount bwas bcalculated
A bclaimant bcan bbe bany bof bthe bfollowing bEXCEPT b- bcorrect banswers✔✔a bperson
bwho bis bconducting ban binvestigation bof ba bclaim bon bbehalf bof ban binsurer.
Which bof bthe bfollowing bis bTRUE bregarding bcontinuing beducation brequirements bof
ban bagent bor bbroker? b- bcorrect banswers✔✔any blicensee bshall bsatisfactorily
bcomplete b24 bhours bof binstruction bprior bto blicense brenewal
According bto bCIC bSection b1711, ban borganization bceases bto bexist bas ban bentity
beligible bto bhold ba blicense bEXCEPT b- bcorrect banswers✔✔upon bthe btermination bof
ball bcontracts
, Which bof bthe bfollowing bprovisions bof bfree binsurance boffered bas ban bincentive bto
bpurchase bor brent bproperty bis bTRUE? b- bcorrect banswers✔✔it brequires ba bseparate
bcharge bor bfee
When bmay ba brepresentation bbe baltered bor bwithdrawn? b- bcorrect banswers✔✔before
bthe binsurance bis beffected
Which bof bthe bfollowing bis ba bparty bto ba bcontract bof binsurance bbound bto
bcommunicate bEXCEPT b- bcorrect banswers✔✔those bwhich bthe bother bwould bknow
bby bretaining ba bconsultant bwith bspecialized bknowledge bin binsurance bmatters
When bmay ba bsurplus bline bbroker bsolicit band bplace binsurance bfor ba bhome bstate
binsured bwith ba bnonadmitted binsurer? b- bcorrect banswers✔✔if bthe bsame binsurance
bcoverage bcannot bbe bprocured bfrom ban badmitted binsurer
Which bof bthe bfollowing bis ban binsurer ballowed bto bdo bin bthe bevent bof ba bclaim? b-
bcorrect banswers✔✔request ba bmedical bexamination bfor bthe bpurpose bof bdetermining
bliability bunder ba bpolicy bprovision
When bcan ba bperson bact bas bagent bof ban binsurer? b- bcorrect banswers✔✔when bthe
binsurer bhas bfiled ba bnotice bof bappointment bwith bthe bcommissioner
According bto bthe bAdministrative bProcedures bAct, bwhat bis brequired bto bmake
bchanges bto bthe bCalifornia bInsurance bCode? b- bcorrect banswers✔✔the bDepartment
bof bInsurance bis brequired bto bpublish bproposed bchanges bat bleast b45 bdays bprior bto
bthe bhearing bor bdecision bto badopt bthe bchange.
Which bform bof bnegotiation bis bcovered bunder bthe bdefinition bof b"transact" bas bapplied
bto binsurance? b- bcorrect banswers✔✔negotiations bpreliminary bto bexecution.
What bis ba bsolicitor bemployed bto bdo bfor ba bpolicy bother bthan blife? b- bcorrect
banswers✔✔to baid ba bproperty band bcasualty bagent bor bbroker bin btransacting
binsurance.
ALL bof bthe bfollowing bare bTRUE bregarding bthe bprocess bto bchange bthe bCalifornia
bCode bof bRegulations bEXCEPT b- bcorrect banswers✔✔the bOffice bof bAdministrative
bLaw b(OAL) bmay bsubstitute bits bown bjudgment bfor bthat bof bthe brulemaking bagency.
Which bstatement bdescribes bthe bintent bof bthe bCalifornia bFinancial bInformation
bPrivacy bAct? b- bcorrect banswers✔✔it bprovides bgreater bprivacy bprotections bthan
bthose bprovided bin bthe bfederal bGramm-Leach-Bliley bAct.
The bInsurance bCommissioner bmay bdeny ban bapplication bfor bany blicense bissued bfor
bany bof bthe bfollowing bEXCEPT b- bcorrect banswers✔✔the bapplicant bis blacking bin
bgood bjudgment.
Test Questions And Correct Answers
Which bwould bpermit ban binsurer bto bescape binsolvency? b- bcorrect
banswers✔✔possession bof bassets bequal bto bthe btotal bpaid-in bcapital bafter ball
bliabilities band breinsurance
When bshould ban binsurer bprovide bfor bthe bcontinuous boperation bof ba bunit bor
bdivision bto binvestigate bpossible bfraudulent bclaims? b- bcorrect banswers✔✔if badmitted
bto bdo bbusiness bin bthis btate, bexcept bthose botherwise bexempted
What bis bthe bmaximum bfine bfor ba bperson bwho btransacts binsurance bwithout ba bvalid
blicense? b- bcorrect banswers✔✔$50,000 band/or bimprisonment bfor ba bperiod bnot
bexceeding bone byear.
Which bof bthe bfollowing bis bTRUE bregarding bnon badmitted binsurers? b- bcorrect
banswers✔✔acting bas ban bagent bfor ba bnon badmitted binsurer bis bconsidered ba
bmisdemeanor
Which bcircumstances bin ba bpretext binterview bdetermine bif bthe bquestions bare
bpermissible? b- bcorrect banswers✔✔when ban binsured bis bconsulted bby ba bperson
bwho bhides bhis btrue bidentity bon bpurpose bwhen bfraud bfor ba bclaim bis bsuspected
A bpolicy bshall bspecify ball bof bthe bfollowing bEXCEPT b- bcorrect banswers✔✔the
bmethod bin bwhich bthe bcoverage bamount bwas bcalculated
A bclaimant bcan bbe bany bof bthe bfollowing bEXCEPT b- bcorrect banswers✔✔a bperson
bwho bis bconducting ban binvestigation bof ba bclaim bon bbehalf bof ban binsurer.
Which bof bthe bfollowing bis bTRUE bregarding bcontinuing beducation brequirements bof
ban bagent bor bbroker? b- bcorrect banswers✔✔any blicensee bshall bsatisfactorily
bcomplete b24 bhours bof binstruction bprior bto blicense brenewal
According bto bCIC bSection b1711, ban borganization bceases bto bexist bas ban bentity
beligible bto bhold ba blicense bEXCEPT b- bcorrect banswers✔✔upon bthe btermination bof
ball bcontracts
, Which bof bthe bfollowing bprovisions bof bfree binsurance boffered bas ban bincentive bto
bpurchase bor brent bproperty bis bTRUE? b- bcorrect banswers✔✔it brequires ba bseparate
bcharge bor bfee
When bmay ba brepresentation bbe baltered bor bwithdrawn? b- bcorrect banswers✔✔before
bthe binsurance bis beffected
Which bof bthe bfollowing bis ba bparty bto ba bcontract bof binsurance bbound bto
bcommunicate bEXCEPT b- bcorrect banswers✔✔those bwhich bthe bother bwould bknow
bby bretaining ba bconsultant bwith bspecialized bknowledge bin binsurance bmatters
When bmay ba bsurplus bline bbroker bsolicit band bplace binsurance bfor ba bhome bstate
binsured bwith ba bnonadmitted binsurer? b- bcorrect banswers✔✔if bthe bsame binsurance
bcoverage bcannot bbe bprocured bfrom ban badmitted binsurer
Which bof bthe bfollowing bis ban binsurer ballowed bto bdo bin bthe bevent bof ba bclaim? b-
bcorrect banswers✔✔request ba bmedical bexamination bfor bthe bpurpose bof bdetermining
bliability bunder ba bpolicy bprovision
When bcan ba bperson bact bas bagent bof ban binsurer? b- bcorrect banswers✔✔when bthe
binsurer bhas bfiled ba bnotice bof bappointment bwith bthe bcommissioner
According bto bthe bAdministrative bProcedures bAct, bwhat bis brequired bto bmake
bchanges bto bthe bCalifornia bInsurance bCode? b- bcorrect banswers✔✔the bDepartment
bof bInsurance bis brequired bto bpublish bproposed bchanges bat bleast b45 bdays bprior bto
bthe bhearing bor bdecision bto badopt bthe bchange.
Which bform bof bnegotiation bis bcovered bunder bthe bdefinition bof b"transact" bas bapplied
bto binsurance? b- bcorrect banswers✔✔negotiations bpreliminary bto bexecution.
What bis ba bsolicitor bemployed bto bdo bfor ba bpolicy bother bthan blife? b- bcorrect
banswers✔✔to baid ba bproperty band bcasualty bagent bor bbroker bin btransacting
binsurance.
ALL bof bthe bfollowing bare bTRUE bregarding bthe bprocess bto bchange bthe bCalifornia
bCode bof bRegulations bEXCEPT b- bcorrect banswers✔✔the bOffice bof bAdministrative
bLaw b(OAL) bmay bsubstitute bits bown bjudgment bfor bthat bof bthe brulemaking bagency.
Which bstatement bdescribes bthe bintent bof bthe bCalifornia bFinancial bInformation
bPrivacy bAct? b- bcorrect banswers✔✔it bprovides bgreater bprivacy bprotections bthan
bthose bprovided bin bthe bfederal bGramm-Leach-Bliley bAct.
The bInsurance bCommissioner bmay bdeny ban bapplication bfor bany blicense bissued bfor
bany bof bthe bfollowing bEXCEPT b- bcorrect banswers✔✔the bapplicant bis blacking bin
bgood bjudgment.
