Exam (elaborations)
PSI Property and Casualty Practice Test - California EXAM
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PSI Property and Casualty Practice Test - California EXAM
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PSI Property and Casualty Practice Test -California EXAM
1. How does an "admitted" person differ from a "non-admitted" person, as it
pertains to insurance? - CORRECT ANSWER-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.
2. A claimant can be any of the following EXCEPT? - CORRECT ANSWER-o a
person who is conducting an investigation of a claim on behalf of an insurer.
3. When should an insurer provide for the continuous operation of a unit or
division to investigate possible fraudulent claims? - CORRECT ANSWER-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 ANSWER-o Upon the
termination of all contracts
5. All of the following define insolvency EXCEPT? - CORRECT ANSWER-o
revocation of certificate of authority by the commissioner.
6. As used in the insurance code, the word "shall" is mandatory and the word
"may" is permissive EXCEPT? - CORRECT ANSWER-o unless otherwise
apparent from the context.
7. 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-o Poof of claim
8. 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 ANSWER-o The commissioner may take possession of offices,
books and property immediately without court order.
, 9. An insurance agent is a person who transacts all of the following types of
insurance EXCEPT - CORRECT ANSWER-o Life insurance
10. Which of the following is TRUE regarding continuing education requirements
of an agent or broker? - CORRECT ANSWER-o Any licensee shall satisfactorily
complete 24 hours of instruction prior to license renewal.
11. All of the following are included as definitions of "transact" as applied to
insurance EXCEPT? - CORRECT ANSWER-o Underwriting
12. Which group of people is offered additional protection by the Unfair Practices
Act that regulates trade practices in the business of insurance? - CORRECT
ANSWER-o Survivors of the Holocaust
13. Which of the following can the insurer do if the insured intentionally conceals
or misrepresents a material fact concerning any coverage part? - CORRECT
ANSWER-o Rescind the contract
14. While both work with an insurer, how does an "Insurance broker" differ from
an "insurance agent"? - CORRECT ANSWER-o The broker does not transact on
behalf of an insurer, while the agent does.
15. How can a licensee surrender any license for cancellation? - CORRECT
ANSWER-o By submitting written notice or by delivering the license to the
commissioner
16. The following are all penalties for unlawfully acting as an insurer without a
certificate of authority EXCEPT? - CORRECT ANSWER-The individual will be
banned from practicing insurance for a period of 5 years
17. Materiality to be solely determined by which of the following? - CORRECT
ANSWER-o The probable and reasonable influence of the facts upon the party to
whom the communication is due
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