PSI PRACTICE EXAM PERSONAL LINES
BROKER-AGENT 60
WHEN AN AGENT TRIES TO CONVINCE A POLICYHOLDER TO REPLACE
AN EXISTING POLICY TO BUY ANOTHER ONE, WHAT ARE THEY
PRACTICING? - CORRECT ANSWER-MISREPRESENTATION
WHICH OF THE FOLLOWING IS A FORM OF INSURANCE COMPANY
ORGANIZATION THAT CONSISTS OF MEMBERS WHO SHARE LOSSES
WITH EACH OTHER? - CORRECT ANSWER-RECIPROCAL
WHAT POLICY PROVISION SPECIFIES A CERTAIN VALUE THAT WILL MEET
THE COINSURANCE REQUIREMENT? - CORRECT ANSWER-AGREED
VALUE
ALL OF THE FOLLOWING ARE CORRECT FOR EXCESS LINES CARRIERS
EXCEPT - CORRECT ANSWER-THEY OFFER BETTER CONTRACTS AT
LOWER RATES.
HOW MANY BUSINESS DAYS DOES A BUSINESS HAVE TO HONOR A
REQUESTED EMAIL OPT-OUT ACCORDING TO THE 2003 CAN-SPAM, ACT?
- CORRECT ANSWER-10
WHICH OF THE FOLLOWING IS ONE OF THE OBJECTIVES OF THE
TERRORISM RISK INSURANCE ACT OF 2002? - CORRECT ANSWER-IT
LIMITS THE EXPOSURE OF INDIVIDUAL INSURERS AND THE INSURANCE
INDUSTRY AS A WHOLE.
ALL OF THE FOLLOWING ARE EXAMPLES OF CONDUCT OF AN AGENT
THAT IS REGULATED BY DEPARTMENT OF INSURANCE EXCEPT -
CORRECT ANSWER-MISAPPROPRIATION OR CONVERSION OF FUNDS BY
AN INSURANCE AGENT
THE GRAMM-LEACH-BLILEY ACT WAS ENACTED TO PROTECT
CONSUMER'S RIGHT TO PRIVACY AND MADE MANDATORY WHICH OF
, THE FOLLOWING? - CORRECT ANSWER-FINANCIAL INSTITUTIONS MUST
HAVE A PRIVACY POLICY IN PLACE
WHICH OF THE FOLLOWING IS EXEMPT FROM THE TELEMARKETING
SALES RULE THAT ESTABLISHED THE NATIONAL DO NOT CALL
REGISTRY? - CORRECT ANSWER-CALLS FROM OR ON BEHALF OF
POLITICAL CAMPAIGNS OR ORGANIZATIONS AND CHARITIES.
THE FAIR CREDIT REPORTING ACT PERMITS CONSUMER REPORTING
AGENCIES TO INCLUDE APPLICANT INFORMATION ABOUT
BANKRUPTCIES MORE THAN 10 YEARS OLD UNDER WHICH OF THE
FOLLOWING CIRCUMSTANCES: - CORRECT ANSWER-THE APPLICANT IS
SEEKING A TRANSACTION GREATER THAN $150,000.
WHAT IS AN EXAMPLE OF DIRECT LOSS? - CORRECT ANSWER-A HOUSE
BEING DAMAGED IN A SEVERE WINDSTORM.
WHICH OF THE FOLLOWING TYPES OF CRIME BEST DESCRIBE THE
UNLAWFUL ACT OF TAKING PROPERTY FROM THE CARE AND CUSTODY
OF ANOTHER PERSON WHILE THREATENING TO CAUSE BODILY HARM? -
CORRECT ANSWER-ROBBERY
ALL THE FOLLOWING DEMONSTRATE INSURABLE INTEREST EXCEPT? -
CORRECT ANSWER-INSURING AN ENGAGEMENT RING GIVEN TO A
FIANCEE.
ALL THE FOLLOWING ARE TRUE REGARDING BINDERS EXCEPT: -
CORRECT ANSWER-A BINDER GUARENTEES THAT A POLICY WILL BE
ISSUED.
ALL OF THE FOLLOWING ARE USED TO ESTABLISH NEGLIGENCE
EXCEPT: - CORRECT ANSWER-COST OF DAMAGES
THE INSURED PURCHASED A CAR FOR %40,000 AND ADDED $5,000 IN
INSURED MODIFICATIONS. FOUR YEARS LATER IT IS WORTH $24,000
WHEN IT WAS TOTALED IN A CRASH. ACCORDING TO THE PRINCIPLE OF
BROKER-AGENT 60
WHEN AN AGENT TRIES TO CONVINCE A POLICYHOLDER TO REPLACE
AN EXISTING POLICY TO BUY ANOTHER ONE, WHAT ARE THEY
PRACTICING? - CORRECT ANSWER-MISREPRESENTATION
WHICH OF THE FOLLOWING IS A FORM OF INSURANCE COMPANY
ORGANIZATION THAT CONSISTS OF MEMBERS WHO SHARE LOSSES
WITH EACH OTHER? - CORRECT ANSWER-RECIPROCAL
WHAT POLICY PROVISION SPECIFIES A CERTAIN VALUE THAT WILL MEET
THE COINSURANCE REQUIREMENT? - CORRECT ANSWER-AGREED
VALUE
ALL OF THE FOLLOWING ARE CORRECT FOR EXCESS LINES CARRIERS
EXCEPT - CORRECT ANSWER-THEY OFFER BETTER CONTRACTS AT
LOWER RATES.
HOW MANY BUSINESS DAYS DOES A BUSINESS HAVE TO HONOR A
REQUESTED EMAIL OPT-OUT ACCORDING TO THE 2003 CAN-SPAM, ACT?
- CORRECT ANSWER-10
WHICH OF THE FOLLOWING IS ONE OF THE OBJECTIVES OF THE
TERRORISM RISK INSURANCE ACT OF 2002? - CORRECT ANSWER-IT
LIMITS THE EXPOSURE OF INDIVIDUAL INSURERS AND THE INSURANCE
INDUSTRY AS A WHOLE.
ALL OF THE FOLLOWING ARE EXAMPLES OF CONDUCT OF AN AGENT
THAT IS REGULATED BY DEPARTMENT OF INSURANCE EXCEPT -
CORRECT ANSWER-MISAPPROPRIATION OR CONVERSION OF FUNDS BY
AN INSURANCE AGENT
THE GRAMM-LEACH-BLILEY ACT WAS ENACTED TO PROTECT
CONSUMER'S RIGHT TO PRIVACY AND MADE MANDATORY WHICH OF
, THE FOLLOWING? - CORRECT ANSWER-FINANCIAL INSTITUTIONS MUST
HAVE A PRIVACY POLICY IN PLACE
WHICH OF THE FOLLOWING IS EXEMPT FROM THE TELEMARKETING
SALES RULE THAT ESTABLISHED THE NATIONAL DO NOT CALL
REGISTRY? - CORRECT ANSWER-CALLS FROM OR ON BEHALF OF
POLITICAL CAMPAIGNS OR ORGANIZATIONS AND CHARITIES.
THE FAIR CREDIT REPORTING ACT PERMITS CONSUMER REPORTING
AGENCIES TO INCLUDE APPLICANT INFORMATION ABOUT
BANKRUPTCIES MORE THAN 10 YEARS OLD UNDER WHICH OF THE
FOLLOWING CIRCUMSTANCES: - CORRECT ANSWER-THE APPLICANT IS
SEEKING A TRANSACTION GREATER THAN $150,000.
WHAT IS AN EXAMPLE OF DIRECT LOSS? - CORRECT ANSWER-A HOUSE
BEING DAMAGED IN A SEVERE WINDSTORM.
WHICH OF THE FOLLOWING TYPES OF CRIME BEST DESCRIBE THE
UNLAWFUL ACT OF TAKING PROPERTY FROM THE CARE AND CUSTODY
OF ANOTHER PERSON WHILE THREATENING TO CAUSE BODILY HARM? -
CORRECT ANSWER-ROBBERY
ALL THE FOLLOWING DEMONSTRATE INSURABLE INTEREST EXCEPT? -
CORRECT ANSWER-INSURING AN ENGAGEMENT RING GIVEN TO A
FIANCEE.
ALL THE FOLLOWING ARE TRUE REGARDING BINDERS EXCEPT: -
CORRECT ANSWER-A BINDER GUARENTEES THAT A POLICY WILL BE
ISSUED.
ALL OF THE FOLLOWING ARE USED TO ESTABLISH NEGLIGENCE
EXCEPT: - CORRECT ANSWER-COST OF DAMAGES
THE INSURED PURCHASED A CAR FOR %40,000 AND ADDED $5,000 IN
INSURED MODIFICATIONS. FOUR YEARS LATER IT IS WORTH $24,000
WHEN IT WAS TOTALED IN A CRASH. ACCORDING TO THE PRINCIPLE OF
