PSI PRACTICE EXAM GUIDE
QUESTIONS WITH COMPLETE
ANSWERS
Charges and collects a broker's fee for service. - answer-all of the following are
authorized activities for the limited lines automobile insurance agent except if the agent
The managing general agent - answer-who is authorized to adjust or pay claims in
excess of an amount determined by the commissioner?
Delivering policies to the insured - answer-all of the following are duties of a managing
general agent except
The percentage of caarp policies required is equal to the percentage of regular
insurance policies the insurer has issued within the state. - answer-what is the method
used for placing business with the california automobile assigned risk program?
It remains valid until a policy has been delivered. - answer-all of the following are true in
reference to an insurance binder except
An annual payment has been received by the insurer. - answer-which condition is not
required to be met for a surplus line broker to advise any home state insured or
applicant that coverage has been, or will be obtained from a nonadmitted insurer?
30 days - answer-how many days prior to policy expiration is an insurer required to mail
a nonrenewal notice to the named insured?
$5,000 for medical services. - answer-all of the following are part of the minimum liability
insurance requirements for private passenger vehicles except
Determine which claims are approved and which are denied. - answer-which is not a
duty of the workers compensation bureau?
The broker-agent's financial status - answer-which of the following shall every property
broker-agent and casualty broker-agent disclose prior to arranging premium financing
for the purchase of a policy?
Personal aircraft. - answer-a personal lines licensee is an agent-broker who is able to
transact coverage for all of the following except
That the rate for the placed insurance must be the lowest option. - answer-all of the
following conditions must be met before a surplus lines broker may place insurance with
a nonadmitted insurer except
, At the time of application or receipt of premium moneys - answer-when shall a life
agent, a property broker-agent or a casualty broker-agent provide to all insureds or
applicants the effective date of coverage?
When it is inadequate and excessive - answer-when can a rate be denied by the
department?
Sell life insurance covering compensation benefits. - answer-in conducting the business
and affairs of the state compensation insurance fund, the president of the fund may do
any of the following except
To pay medical bills. - answer-all of the following are reasons employers liability
insurance is needed in addition to workers' compensation insurance except
Sixty days - answer-how long after the expiration date may a licensee who has met all
the requirements to renew a license be allowed to operate under the existing license?
When it is from the same insured for unpaid premiums on the same or any other policy -
answer-when may a property broker-agent, casualty broker-agent or surplus lines agent
offset funds due an insured for return premiums?
They can recommend that an automobile be repaired at a specific repair shop unless
other requirements have been met. - answer-which of the following may an insurer do in
an automobile claim?
A company with an escrow account that is licensed to do business in california. -
answer-under the california vehicle code all of the following are acceptable to satisfy the
financial responsibility requirement except
Applications for license and renewals - answer-where must the address be printed for
the principal office that is required for every broker agent and resident insurance
casualty broker-agent?
Being licensed to drive a motor vehicle for the previous 3 years and has not had more
than one violation point count as determined by the cic. - answer-what criteria must a
person meet in order to be qualified to purchase a good driver discount policy?
Currency and capacity - answer-which of the following must be prominently displayed
so that it can be readily inspected on the license?
The fees and process are the same as for a personal lines licensee. - answer-which of
the following is true regarding the application and renewal of the limited lines automobile
insurance agent license?
QUESTIONS WITH COMPLETE
ANSWERS
Charges and collects a broker's fee for service. - answer-all of the following are
authorized activities for the limited lines automobile insurance agent except if the agent
The managing general agent - answer-who is authorized to adjust or pay claims in
excess of an amount determined by the commissioner?
Delivering policies to the insured - answer-all of the following are duties of a managing
general agent except
The percentage of caarp policies required is equal to the percentage of regular
insurance policies the insurer has issued within the state. - answer-what is the method
used for placing business with the california automobile assigned risk program?
It remains valid until a policy has been delivered. - answer-all of the following are true in
reference to an insurance binder except
An annual payment has been received by the insurer. - answer-which condition is not
required to be met for a surplus line broker to advise any home state insured or
applicant that coverage has been, or will be obtained from a nonadmitted insurer?
30 days - answer-how many days prior to policy expiration is an insurer required to mail
a nonrenewal notice to the named insured?
$5,000 for medical services. - answer-all of the following are part of the minimum liability
insurance requirements for private passenger vehicles except
Determine which claims are approved and which are denied. - answer-which is not a
duty of the workers compensation bureau?
The broker-agent's financial status - answer-which of the following shall every property
broker-agent and casualty broker-agent disclose prior to arranging premium financing
for the purchase of a policy?
Personal aircraft. - answer-a personal lines licensee is an agent-broker who is able to
transact coverage for all of the following except
That the rate for the placed insurance must be the lowest option. - answer-all of the
following conditions must be met before a surplus lines broker may place insurance with
a nonadmitted insurer except
, At the time of application or receipt of premium moneys - answer-when shall a life
agent, a property broker-agent or a casualty broker-agent provide to all insureds or
applicants the effective date of coverage?
When it is inadequate and excessive - answer-when can a rate be denied by the
department?
Sell life insurance covering compensation benefits. - answer-in conducting the business
and affairs of the state compensation insurance fund, the president of the fund may do
any of the following except
To pay medical bills. - answer-all of the following are reasons employers liability
insurance is needed in addition to workers' compensation insurance except
Sixty days - answer-how long after the expiration date may a licensee who has met all
the requirements to renew a license be allowed to operate under the existing license?
When it is from the same insured for unpaid premiums on the same or any other policy -
answer-when may a property broker-agent, casualty broker-agent or surplus lines agent
offset funds due an insured for return premiums?
They can recommend that an automobile be repaired at a specific repair shop unless
other requirements have been met. - answer-which of the following may an insurer do in
an automobile claim?
A company with an escrow account that is licensed to do business in california. -
answer-under the california vehicle code all of the following are acceptable to satisfy the
financial responsibility requirement except
Applications for license and renewals - answer-where must the address be printed for
the principal office that is required for every broker agent and resident insurance
casualty broker-agent?
Being licensed to drive a motor vehicle for the previous 3 years and has not had more
than one violation point count as determined by the cic. - answer-what criteria must a
person meet in order to be qualified to purchase a good driver discount policy?
Currency and capacity - answer-which of the following must be prominently displayed
so that it can be readily inspected on the license?
The fees and process are the same as for a personal lines licensee. - answer-which of
the following is true regarding the application and renewal of the limited lines automobile
insurance agent license?
