PSI EXAM PROPERTY AND CASUALTY
Q AND A
Allvyofvythevyfollowingvyarevyauthorizedvyactivitiesvyforvythevylimitedvylinesvyautomobilevyinsu
rancevyagentsvyEXCEPTvyifvythevyagentvy-vyanswer--
Chargesvyandvycollectsvyavybrokersvyfeevyforvyservice
Whichvyofvythevyfollowingvydescriesvyavycontractvyofvyreinsurance?vy-vyanswer--
Avyfirstvyinsurervyissuesvyinsurancevytovycompensatevyanothervyinsurervyforvylossesvyonvyco
ntractsvyissuedvybyvythatvysecondvyinsurer
Avypersonalvylinesvylicenseevyisvyanvyagent-
brokervywhovyisvyablevytovytransactvycoveragevyforvyallvythevyfollowingvyEXCEPTvy-
vyanswer--PersonalvyAircraft
AllvyofvythevyfollowingvyarevyrequirementsvyforvydeterminingvyanvyareavythatvyqualifiesvyforvyL
owvyCostvyAutomobilevyInsurancevyEXCEPTvy-vyanswer--
Thevynumbervyofvyautomobilevyaccidentsvythatvyoccurvywithinvythevycounty
Whatvycriteriavymustvyavypersonvymeetvyinvyordervytovybevyqualifiedvytovypurchasevyavygoodvy
drivervydiscountvypolicy?vy-vyanswer--
Beingvylicensedvytovydrivevyavymotorvyvehiclevyforvythevypreviousvy3vyyearsvyandvyhasvynotvyh
advymorevythanvy1vyviolationvypointvyasvydeterminedvybyvythevyCIC
Whichvyofvythevyfollowingvymustvybevyprominentlyvydisplayedvysovythatvyitvycanvybevyreadilyvy
inspectedvyonvythevylicensee?vy-vyanswer--Currencyvyandvycapacity
WhatvyisvythevyprimaryvyfunctionvyofvythevyCaliforniavyAutomotivevyAssignedvyRiskvyPlan?
vyCARRPvy-vyanswer--
Tovyputvypeoplevywhovyhavevytroublevyobtainingvyinsurancevyinvytouchvywithvyinsurersvywho
vymayvybevyrequiredvybyvylawvytovyinsurevythem.
WhichvyisvyNOTvyavydutyvyofvythevyWorkersvyCompensationvyBureau?vy-vyanswer--
Determinevywhichvyclaimsvyarevyapprovedvyandvywhichvyarevydenied.
Whenvycanvyavypersonvywhovysellsvyrealvypropertyvyrequirevythevyusevyofvyavyspecificvyinsura
ncevyagent,vybrokervyorvysolicitor?vy-vyanswer--
Avybuyervyisvyalwaysvyalevytovychoosevytheirvyinsurancevyrepresentative
Atvywhichvypointvyisvyavypersonvylicensedvyasvyavybroker-
agentvydeemedvytovybevyactingvyasvyanvyinsurancevyagent?vy-vyanswer--
whenvyavynoticevyofvyappointmentvyisvyfiledvywithvythevyinsurancevycommissioner
Whovymustvybevyablevytovyinspectvyrecordsvyofvyinsurancevytransactionsvymadevyavailablevy
byvyagent-brokersvyatvyanyvytime?vy-vyanswer--ThevyInsurancevycommissioner
, Wherevymustvythevyaddressvybevyprintedvyforvythevyprincipalvyofficevythatvyisvyrequiredvyforvy
everyvybrokervyagentvyandvyresidentvyinsurancevycasualtyvybroker-agent?vy-vyanswer--
Applicationsvyforvylicensevyandvyrenewals
HowvymanyvyclassesvyofvyinsurancevyarevydefinedvyundervyCaliforniavyinsurancevylawvyincl
udingvy"miscellaneous"vyandvy"reserved"?vy-vyanswer--
Therevyarevyavytotalvyofvy20vyclassesvyofvyinsurancevyundervyCAvyinsurancevylawvywithvysubv
yclasses
WhenvycanvyavyratevybevydeniedvybyvythevyDepartment?vy-vyanswer--
whenvyitvyisvyinadequatevyandvyexcessive
Avy"personalvylines"vyagentvyorvybrokervyisvyallowedvytovytransactvywhatvytypevyofvyinsuranc
evycoverage?vy-vyanswer--Noncommercialvyautomobilevyandvyresidentialvyproperty
Whatvyisvythevyrequiredvyratevydiscountvyundervyavygoodvydrivervydiscountvypolicy?vy-
vyanswer--
20%vybelowvythevyratevythevyinsuredvywouldvyhavevybeenvychargedvyotherwisevyforvythevysa
mevycoverage
WhichvyconditionvyisvyNOTvyrequiredvytovybevymetvyforvyavysurplusvylinevybrokervytovyadvisevy
anyvyhomevystatevyinsuredvyorvyapplicatevythatvycoveragevyhasvybeen,vyorvywillvybevyobtaine
dvyfromvyavynonadmittedvyinsurer?vy-vyanswer--
Anvyannualvypaymentvyasvybeenvyreceivedvybyvythevyinsurer?
Whovyisvyauthorizedvytovyadjustvyorvypayvyclaimsvyinvyexcessvyofvyanvyamountvydeterminedvy
byvythevycomissioner?vy-vyanswer--Thevymanagingvygeneralvyagent
Invyordervyforvyanvyinsurervytovycontractvywithvythevystatevycompensationvyinsurancevyfundvyi
tvymustvymeetvyallvyofvythevyfollowingvycriteriavyEXCEPTvy-vyanswer--
ThevyinsurervyhasvymetvyallvyrationvyrequirementsvyforvyriskvybasedvycapitalvyRBC
Invyconductingvythevybusinessvyandvyaffairsvyofvythevystatevycompensationvyinsurancevyfun
dvyitvymustvymeetvyallvyofvythevyfollowingvycriteriavyEXCEPTvy-vyanswer--
Sellvylifevyinsurancevycoveringvycompensationvybenefits
WhovyisvyablevytovyplacevybusinessvythroughvythevyCaliforniavyAutomobilevyAssessedvyRis
kvyProgram?vy-vyanswer--Onlyvyagent/
brokersvylicensedvyinvyfirevyandvycasualtyvywhovyhavevyalsovybeenvycertifiedvythroughvyCAA
RP
UndervythevyCaliforniavyVehiclevyCodevyallvyofvythevyfollowingvyarevyacceptablevytovysatisfyvy
thevyfinancialvyresponsibilityvyrequirementvyEXCEPTvy-vyanswer--
AvycompanyvywithvyanvyescrowvyaccountvythatvyisvylicensedvytovydovybusinessvyinvyCaliforni
a
Whichvytwovypiecesvyofvyinformationvyarevyrequiredvytovybevyonvyallvybusinessvycards,vyprint
edvyquotes,vyandvyprintedvyadvertisementsvydistributedvyexclusivelyvywithinvythevystate?vy-
vyanswer--Thevylicensevynumbervyofvythevylicenseevyandvythevywordvy"insurance"
Q AND A
Allvyofvythevyfollowingvyarevyauthorizedvyactivitiesvyforvythevylimitedvylinesvyautomobilevyinsu
rancevyagentsvyEXCEPTvyifvythevyagentvy-vyanswer--
Chargesvyandvycollectsvyavybrokersvyfeevyforvyservice
Whichvyofvythevyfollowingvydescriesvyavycontractvyofvyreinsurance?vy-vyanswer--
Avyfirstvyinsurervyissuesvyinsurancevytovycompensatevyanothervyinsurervyforvylossesvyonvyco
ntractsvyissuedvybyvythatvysecondvyinsurer
Avypersonalvylinesvylicenseevyisvyanvyagent-
brokervywhovyisvyablevytovytransactvycoveragevyforvyallvythevyfollowingvyEXCEPTvy-
vyanswer--PersonalvyAircraft
AllvyofvythevyfollowingvyarevyrequirementsvyforvydeterminingvyanvyareavythatvyqualifiesvyforvyL
owvyCostvyAutomobilevyInsurancevyEXCEPTvy-vyanswer--
Thevynumbervyofvyautomobilevyaccidentsvythatvyoccurvywithinvythevycounty
Whatvycriteriavymustvyavypersonvymeetvyinvyordervytovybevyqualifiedvytovypurchasevyavygoodvy
drivervydiscountvypolicy?vy-vyanswer--
Beingvylicensedvytovydrivevyavymotorvyvehiclevyforvythevypreviousvy3vyyearsvyandvyhasvynotvyh
advymorevythanvy1vyviolationvypointvyasvydeterminedvybyvythevyCIC
Whichvyofvythevyfollowingvymustvybevyprominentlyvydisplayedvysovythatvyitvycanvybevyreadilyvy
inspectedvyonvythevylicensee?vy-vyanswer--Currencyvyandvycapacity
WhatvyisvythevyprimaryvyfunctionvyofvythevyCaliforniavyAutomotivevyAssignedvyRiskvyPlan?
vyCARRPvy-vyanswer--
Tovyputvypeoplevywhovyhavevytroublevyobtainingvyinsurancevyinvytouchvywithvyinsurersvywho
vymayvybevyrequiredvybyvylawvytovyinsurevythem.
WhichvyisvyNOTvyavydutyvyofvythevyWorkersvyCompensationvyBureau?vy-vyanswer--
Determinevywhichvyclaimsvyarevyapprovedvyandvywhichvyarevydenied.
Whenvycanvyavypersonvywhovysellsvyrealvypropertyvyrequirevythevyusevyofvyavyspecificvyinsura
ncevyagent,vybrokervyorvysolicitor?vy-vyanswer--
Avybuyervyisvyalwaysvyalevytovychoosevytheirvyinsurancevyrepresentative
Atvywhichvypointvyisvyavypersonvylicensedvyasvyavybroker-
agentvydeemedvytovybevyactingvyasvyanvyinsurancevyagent?vy-vyanswer--
whenvyavynoticevyofvyappointmentvyisvyfiledvywithvythevyinsurancevycommissioner
Whovymustvybevyablevytovyinspectvyrecordsvyofvyinsurancevytransactionsvymadevyavailablevy
byvyagent-brokersvyatvyanyvytime?vy-vyanswer--ThevyInsurancevycommissioner
, Wherevymustvythevyaddressvybevyprintedvyforvythevyprincipalvyofficevythatvyisvyrequiredvyforvy
everyvybrokervyagentvyandvyresidentvyinsurancevycasualtyvybroker-agent?vy-vyanswer--
Applicationsvyforvylicensevyandvyrenewals
HowvymanyvyclassesvyofvyinsurancevyarevydefinedvyundervyCaliforniavyinsurancevylawvyincl
udingvy"miscellaneous"vyandvy"reserved"?vy-vyanswer--
Therevyarevyavytotalvyofvy20vyclassesvyofvyinsurancevyundervyCAvyinsurancevylawvywithvysubv
yclasses
WhenvycanvyavyratevybevydeniedvybyvythevyDepartment?vy-vyanswer--
whenvyitvyisvyinadequatevyandvyexcessive
Avy"personalvylines"vyagentvyorvybrokervyisvyallowedvytovytransactvywhatvytypevyofvyinsuranc
evycoverage?vy-vyanswer--Noncommercialvyautomobilevyandvyresidentialvyproperty
Whatvyisvythevyrequiredvyratevydiscountvyundervyavygoodvydrivervydiscountvypolicy?vy-
vyanswer--
20%vybelowvythevyratevythevyinsuredvywouldvyhavevybeenvychargedvyotherwisevyforvythevysa
mevycoverage
WhichvyconditionvyisvyNOTvyrequiredvytovybevymetvyforvyavysurplusvylinevybrokervytovyadvisevy
anyvyhomevystatevyinsuredvyorvyapplicatevythatvycoveragevyhasvybeen,vyorvywillvybevyobtaine
dvyfromvyavynonadmittedvyinsurer?vy-vyanswer--
Anvyannualvypaymentvyasvybeenvyreceivedvybyvythevyinsurer?
Whovyisvyauthorizedvytovyadjustvyorvypayvyclaimsvyinvyexcessvyofvyanvyamountvydeterminedvy
byvythevycomissioner?vy-vyanswer--Thevymanagingvygeneralvyagent
Invyordervyforvyanvyinsurervytovycontractvywithvythevystatevycompensationvyinsurancevyfundvyi
tvymustvymeetvyallvyofvythevyfollowingvycriteriavyEXCEPTvy-vyanswer--
ThevyinsurervyhasvymetvyallvyrationvyrequirementsvyforvyriskvybasedvycapitalvyRBC
Invyconductingvythevybusinessvyandvyaffairsvyofvythevystatevycompensationvyinsurancevyfun
dvyitvymustvymeetvyallvyofvythevyfollowingvycriteriavyEXCEPTvy-vyanswer--
Sellvylifevyinsurancevycoveringvycompensationvybenefits
WhovyisvyablevytovyplacevybusinessvythroughvythevyCaliforniavyAutomobilevyAssessedvyRis
kvyProgram?vy-vyanswer--Onlyvyagent/
brokersvylicensedvyinvyfirevyandvycasualtyvywhovyhavevyalsovybeenvycertifiedvythroughvyCAA
RP
UndervythevyCaliforniavyVehiclevyCodevyallvyofvythevyfollowingvyarevyacceptablevytovysatisfyvy
thevyfinancialvyresponsibilityvyrequirementvyEXCEPTvy-vyanswer--
AvycompanyvywithvyanvyescrowvyaccountvythatvyisvylicensedvytovydovybusinessvyinvyCaliforni
a
Whichvytwovypiecesvyofvyinformationvyarevyrequiredvytovybevyonvyallvybusinessvycards,vyprint
edvyquotes,vyandvyprintedvyadvertisementsvydistributedvyexclusivelyvywithinvythevystate?vy-
vyanswer--Thevylicensevynumbervyofvythevylicenseevyandvythevywordvy"insurance"
