PSI CA Property and Casualty Practice Examination

1 Can a lender, as a condition of making a loan, require that any insurance be placed through a particular insurance agent or broker? Correct Answers The loan recipient may always select a particular agent or broker of their choosing 2 A claimant can be any of the following EXCEPT Correct Answers EXCEPT a person who is conducting an investigation of a claim on behalf of an insurer 3 All of the following are to be specified in an insurance policy EXCEPT Correct Answers EXCEPT the financial rating of the insured 4 Which of the following provisions of free insurance offered as an incentive to purchase or rent property is TRUE? Correct Answers It requires a separate charge or fee 5 What is the method used for placing business with the California Automobile Assigned Risk Program? Correct Answers The percentage of CAARP policies required is equal to the percentage of regular insurance policies the insurer has issued within the State 6 Whether admitted or nonadmitted, how does a "foreign" insurer differ from an "alien" or "domestic" insurer? Correct Answers A "foreign" insurer is organized under the laws of another state within the United States 7 All of the following are reasons employers liability insurance is needed in addition to workers' compensation insurance EXCEPT Correct Answers EXCEPT to pay medical bills 8 What is the purpose of the experience modification system in the California workers' compensation experience rating system? Correct Answers It expresses a particular company's loss or claims history as a percentage to all other companies in the industry 9 Which form of negotiation is covered under the definition of "transact" as applied to insurance? Correct Answers Negotiations preliminary to execution 10 Which type of coverage protects against loss caused by earth movement? Correct Answers A stand-alone Earthquake Insurance policy specifically insuring against loss caused by land subsidence