PSI Practice Exam 2026 Questions and
Answers
Who is eligible to be an insurer? - Correct answer-The direct writing distribution
model utilizes:Any person, company, organization, or corporation that is capable of
making a contract.
Which is an INACCURATE statement on the purpose and intent of the Insurance
Information and Privacy Protection Act? - Correct answer-The Act permits
disclosure of insurance underwriting information and claim history records.
Which of the following provisions of free insurance offered as an incentive to
purchase or rent property is TRUE? - Correct answer-It requires a separate charge
or fee.
Which group of people is offered additional protection by the Unfair Practices Act
that regulates trade practices in the business of insurance? - Correct answer-
survivors of the Holocaust
An "insurance agent" means a person authorized, by and on behalf of an insurer, to
transact which of the following class of insurance? - Correct answer-Annuities
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, Which circumstances in a pretext interview determine if the questions are
permissible? - Correct answer-When an insured is consulted by a person who hides
his true identity on purpose when fraud for a claim is suspected.
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? - Correct answer-Proof
of claim
If fiduciary funds are received by any licensee, the funds shall be maintained in
any of the following EXCEPT - Correct answer-bonds issued in all 50 states of the
United States.
Which of the following is TRUE regarding change of address for a licensee? -
Correct answer-The commissioner must be notified immediately of any change in
the personal, business, or email address.
All of the following define insolvency EXCEPT - Correct answer-revocation of
certificate of authority by the commissioner.
When should an insurer provide for the continuous operation of a unit or division
to investigate possible fraudulent claims? - Correct answer-If admitted to do
business in this state, except those otherwise exempted.
©COPYRIGHT 2025 ALL RIGHTS RESERVED 2
Answers
Who is eligible to be an insurer? - Correct answer-The direct writing distribution
model utilizes:Any person, company, organization, or corporation that is capable of
making a contract.
Which is an INACCURATE statement on the purpose and intent of the Insurance
Information and Privacy Protection Act? - Correct answer-The Act permits
disclosure of insurance underwriting information and claim history records.
Which of the following provisions of free insurance offered as an incentive to
purchase or rent property is TRUE? - Correct answer-It requires a separate charge
or fee.
Which group of people is offered additional protection by the Unfair Practices Act
that regulates trade practices in the business of insurance? - Correct answer-
survivors of the Holocaust
An "insurance agent" means a person authorized, by and on behalf of an insurer, to
transact which of the following class of insurance? - Correct answer-Annuities
©COPYRIGHT 2025 ALL RIGHTS RESERVED 1
, Which circumstances in a pretext interview determine if the questions are
permissible? - Correct answer-When an insured is consulted by a person who hides
his true identity on purpose when fraud for a claim is suspected.
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? - Correct answer-Proof
of claim
If fiduciary funds are received by any licensee, the funds shall be maintained in
any of the following EXCEPT - Correct answer-bonds issued in all 50 states of the
United States.
Which of the following is TRUE regarding change of address for a licensee? -
Correct answer-The commissioner must be notified immediately of any change in
the personal, business, or email address.
All of the following define insolvency EXCEPT - Correct answer-revocation of
certificate of authority by the commissioner.
When should an insurer provide for the continuous operation of a unit or division
to investigate possible fraudulent claims? - Correct answer-If admitted to do
business in this state, except those otherwise exempted.
©COPYRIGHT 2025 ALL RIGHTS RESERVED 2
