PSI Exam Property and Casualty
questions and answers 2025\2026 A+
grade
All of the following are authorized activities for the limited lines automobile insurance agents EXCEPT if
the agent
- correct answer Charges and collects a brokers fee for service
Which of the following descries a contract of reinsurance?
- correct answer 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 answer Personal Aircraft
All of the following are requirements for determining an area that qualifies for Low Cost Automobile
Insurance EXCEPT
- correct answer 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 answer 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 answer Currency and capacity
, What is the primary function of the California Automotive Assigned Risk Plan? CARRP
- correct answer 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 answer 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 answer 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 answer 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 answer 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 answer Applications for license and renewals
How many classes of insurance are defined under California insurance law including "miscellaneous" and
"reserved"?
- correct answer 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 answer when it is inadequate and excessive
A "personal lines" agent or broker is allowed to transact what type of insurance coverage?
- correct answer Noncommercial automobile and residential property
questions and answers 2025\2026 A+
grade
All of the following are authorized activities for the limited lines automobile insurance agents EXCEPT if
the agent
- correct answer Charges and collects a brokers fee for service
Which of the following descries a contract of reinsurance?
- correct answer 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 answer Personal Aircraft
All of the following are requirements for determining an area that qualifies for Low Cost Automobile
Insurance EXCEPT
- correct answer 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 answer 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 answer Currency and capacity
, What is the primary function of the California Automotive Assigned Risk Plan? CARRP
- correct answer 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 answer 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 answer 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 answer 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 answer 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 answer Applications for license and renewals
How many classes of insurance are defined under California insurance law including "miscellaneous" and
"reserved"?
- correct answer 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 answer when it is inadequate and excessive
A "personal lines" agent or broker is allowed to transact what type of insurance coverage?
- correct answer Noncommercial automobile and residential property
