PSI Property and Casualty Practice Test

PSI Property and Casualty Practice Test – California Exam Questions and Answers (Solved Papers)

• How does an "admitted" person differ from a "non-

admitted" person, as it pertains to insurance? - Correct Answers ✅o An "admitted" person has the right to transact insurance business within the state, while a "non-admitted" person is not entitled to this action.

• A claimant can be any of the following EXCEPT? - Correct

Answers ✅o a person who is conducting an investigation of a claim on behalf of an insurer.

• When should an insurer provide for the continuous

operation of a unit or division to investigate possible fraudulent claims? - Correct Answers ✅o If admitted to do business in this state, except those otherwise exempted.According to CIC Section 1711, an organization ceases to exist as an entity eligible to hold a license EXCEPT? - Correct Answers ✅o Upon the termination of all contracts

• All of the following define insolvency EXCEPT? - Correct

Answers ✅o revocation of certificate of authority by the commissioner.

• As used in the insurance code, the word "shall" is

mandatory and the word "may" is permissive EXCEPT? - 1 / 3

PSI Property and Casualty Practice Test – California Exam Questions and Answers (Solved Papers) Correct Answers ✅o unless otherwise apparent from the context.

• 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 Answers ✅o Poof of claim

• When examination of an insurer shows the insurer to be

insolvent and a danger to the public, which authority is granted to the Commissioner by the CIC? - Correct Answers ✅o The commissioner may take possession of offices, books and property immediately without court order.

• An insurance agent is a person who transacts all of the

following types of insurance EXCEPT - Correct Answers ✅o Life insurance

• Which of the following is TRUE regarding continuing

education requirements of an agent or broker? - Correct Answers ✅o Any licensee shall satisfactorily complete 24 hours of instruction prior to license renewal. 2 / 3

PSI Property and Casualty Practice Test – California Exam Questions and Answers (Solved Papers)

• All of the following are included as definitions of

"transact" as applied to insurance EXCEPT? - Correct Answers ✅o Underwriting

• Which group of people is offered additional protection by

the Unfair Practices Act that regulates trade practices in the business of insurance? - Correct Answers ✅o Survivors of the Holocaust

• Which of the following can the insurer do if the insured

intentionally conceals or misrepresents a material fact concerning any coverage part? - Correct Answers ✅o Rescind the contract

• While both work with an insurer, how does an "Insurance

broker" differ from an "insurance agent"? - Correct Answers ✅o The broker does not transact on behalf of an insurer, while the agent does.

• How can a licensee surrender any license for

cancellation? - Correct Answers ✅o By submitting written notice or by delivering the license to the commissioner

• The following are all penalties for unlawfully acting as an

insurer without a certificate of authority EXCEPT? - Correct

• / 3