Download PSI CA Property and Casualty Examination 2025: 75 Questions and Answers and more Exams Real Estate Management in PDF only on Docsity!
PSI CA PROPERTY AND CASUALTY
EXAMINATION 2025/ ACTUAL 75Qs&As|LATEST
UPDATE|A+GRADE
Can a lender, as a condition of making a loan, require that any insurance be placed through a particular insurance agent or broker? ANSWER The loan recipient may always select a particular agent or broker of their choosing A claimant can be any of the following APART FROM? ANSWER a person who is conducting an investigation of a claim on behalf of an insurer 1 All of the following are to be specified in an insurance policy APART FROM? ANSWER the financial rating of the insured 2 Which of the following provisions of free insurance offered as an incentive to purchase or rent property is CORRECT? ANSWER It requires a separate charge or fee What is the method used for placing business with the California Automobile Assigned Risk Program? ANSWER The percentage of CAARP policies required is equal to the percentage of regular insurance policies the insurer has issued within the State 3 Whether admitted or nonadmitted, how does a "foreign" insurer differ from an "alien" or "domestic" insurer? ANSWER A "foreign" insurer is organized under the laws of another state within the United States All of the following are reasons employers liability insurance is needed in addition to workers' compensation insurance APART FROM? ANSWER to pay medical bills
What is the purpose of the experience modification system in the California workers' compensation experience rating system? ANSWER It expresses a particular company's loss or claims history as a percentage to all other companies in the industry 4 Which form of negotiation is covered under the definition of "transact" as applied to insurance? ANSWER Negotiations preliminary to execution 5 Which type of coverage protects against loss caused by earth movement? ANSWER A stand-alone Earthquake Insurance policy specifically insuring against loss caused by land subsidence 6 Which circumstances in a pretext interview determine if the questions are permissible? ANSWER When an insured is consulted by a person who hides his true identity on purpose when fraud for a claim is suspected 7 Which is TRUE regarding expectant or contingent interest? ANSWER Expectant or contingent interest does NOT constitute insurable interest 8 "Person" means all of the following APART FROM? ANSWER an organizational trust 9 Which of the following is TRUE regarding continuing education requirements of an agent or broker? ANSWER Any licensee shall satisfactorily complete 24 hours of instruction prior to license renewal.
17 In the event of receiving notice of a claim or other claim communication, all of the following timelines are accurate APART FROM? ANSWER every licensee or claim agent shall transmit notice of the claim to the insurer in no more than 5 calendar days 18 All of the following are cause for cancellation of an automobile policy APART FROM? ANSWER discovery of a criminal record for a felony 19 All of the following are requirements for determining an area that qualifies for Low Cost Automobile Insurance APART FROM? ANSWER the number of automobile accidents that occur within the county 20 ALL of the following are examples of open policies APART FROM? ANSWER agreed value 21 The following are valid insurance classes under California Insurance Law APART FROM? ANSWER certainty, precious metals, and gems 22 An "insurance agent" means a person authorized, by and on behalf an insurer, to transact which of the following class of insurance? ANSWERAnnuities 23 All of the following are examples of representation APART FROM? ANSWER it may be altered after the insurance is effected 24 All of the following are TRUE regarding basic property insurance APART FROM?
ANSWER the comprehensive plan covers both automobiles and risks associated with farming 25 Under the California Vehicle Code all of the following are acceptable to satisfy the Financial Responsibility requirement APART FROM? ANSWER a companywith an escrow account that is licensed to do business in California 26 Which of the following can the insurer do if the insured intentionally conceals or misrepresents a material fact concerning any coverage part? ANSWERRescind the contract 27 Who is eligible to submit applications under the California Fair Access to Insurance Requirements? ANSWERAll insurers authorized to transact basic property insurance in California are able to participate 28 What is the maximum coverage allowed through the California Automobile AssignedRisk Program for bodily injury and death? ANSWERThe maximum coverage per accident is limited to $30,000 of all persons as a result of any one accident 29 How many days prior to policy expiration is an insurer required to mail a nonrenewal notice to the named insured? ANSWER 30 days 30 Which of the following is a VALID reason to deny coverage or charge a higher rate or premium? ANSWERdriving history or motor vehicle record 31 How is the license of an agent or broker required to be displayed? ANSWERThe license must be displayed prominently where it can be readily inspected
45 What 2 different types of areas are served by the California Fair Access to Insurance Responsibilities plan? ANSWERBrush fire risk and inner city 44 Which of the following must be prominently displayed so that it can be readilyinspected on the license? ANSWERcurrency and capacity 46 How can a licensee surrender any license for cancellation? ANSWERBy submitting written notice or by delivering the license to the commissioner 47 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? ANSWERat the time of application or receipt of premium moneys 48 When may a surplus line broker solicit and place insurance for a home state insured with a nonadmitted insurer? ANSWERIf the same insurance coverage cannot be procured from an admitted insurer 50 Who is legally capable to estimate the replacement value of a structure and discuss homeowners policy coverage levels? ANSWERAn insurer underwriter or actuary 49 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? ANSWERthe broker-agent's financial status 51 Unless otherwise specified in the insurance contract, all of the following are TRUE
regarding return of premium APART FROM? ANSWER the premium is forfeited if the policy is cancelled 52 What criteria must a person meet in order to be qualified to purchase a Good Driver Discount policy? ANSWERBeing 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 53 When may a property broker-agent, casualty broker-agent or surplus lines agent offset funds due an insured for return premiums? ANSWERwhen it is from the same insured for unpaid premiums on the same or any other policy 54 Which is an INACCURATE statement regarding the non-standard coverage provide by surplus line brokers? ANSWERThey must provide notice to the commissioner within 14 days of providing non-standard coverage for a home state insured 55 According to CIC Section 1711, an organization ceases to exist as an entity eligible to hold a license APART FROM? ANSWER upon the termination of all contracts 56 Which type of protection can a casualty licensee offer in addition to protecting against loss or damage of property? ANSWERThey can provide coverage to protect against legal liability 57 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? ANSWERThe commissioner may take possession of offices, books and property immediately without court order
coverage amount of the policy 66 When is it possible for a commercial vehicle to be eligible for coverage under the California Automobile Assigned Risk Program? ANSWERif it is a privately owned lightweight commercial vehicle used for local service or retail deliveries within a specific geographic area 67 Which of the following modification can be made under a standard fire policy? ANSWERThe coverage can substantially be equal to or more favorable to the insured 68 All of the following conditions must be met before a surplus lines broker may place insurance with a nonadmitted insurer APART FROM? ANSWER that the ratefor the placed insurance must be the lowest option 69What is the coverage limit offered by the California Earthquake Authority for condominiums? ANSWERThe coverage is limited to $25,000 if the value is $135,000 or less, and $50,000 if the value is over $135, 70 Who is responsible for notifying the public of a proposed rate increase? ANSWERThe insurance commissioner 71 All of the following are taken into consideration for California Automobile Assigned Risk Program eligibility for applicants APART FROM? ANSWER the education of the applicant 72 What is the procedure for refusing uninsured motorist coverage in a liability policy?
ANSWERPrior to issuance or renewal, the insured may state in writing that they do not want the coverage 73 What is the main duty of an insurance adjuster? ANSWERTo assist the insurer by investigating when criminal activity is suspected in connection with a policy 74 Which of the following is a party to a contract of insurance bound to communicate APART FROM? ANSWER those which the other would know by retaining aconsultant with specialized knowledge in insurance matters 75 All of the following are reasons earthquake policy deductibles are MORE FAVORABLE than commonly used property deductibles APART FROM? ANSWER the earthquake deductible is often 10 to 15 percent higher than for other types of property coverage
