PSI Exam Property and Casualty

All of the following are examples of representation EXCEPT

It may be altered after the insurance is effected

Which statement describes the intent of the California Financial Information Privacy Act?

It provides great privacy protections than those provided in the federal gramm-leach-bliley act

Which of the following provision for free insurance offered as an incentive to purchase or rent property is TRUE?

It requires a separate charge or fee

Who is able to place business through the California Automobile Assessed Risk Program?

Only agent/brokers licensed in fire and casualty who have also been certified through CAARP

What is the required rate discount under a good driver discount policy?

20% below the rate the insured would have been charged otherwise for the same coverage

All of the following are part of the Minimum Liability Insurance Requirements for Private Passenger Vehicles EXCEPT

5k for medical services

When can a person who sells real property require the use of a specific insurance agent, broker or solicitor?

A buyer is always ale to choose their insurance representative

Under the California Vehicle Code all of the following are acceptable to satisfy the financial responsibility requirement EXCEPT

A company with an escrow account that is licensed to do business in California

What document must be provided to the insured prior to any residential insurance policy being issued or renewed?

A copy of the California Residential Property disclosure statement?

Which of the following descries a contract of reinsurance?

A first insurer issues insurance to compensate another insurer for losses on contracts issued by that second insurer

Whether admitted or nonadmitted, how does a "foreign insurer differ from alien or domestic?

A foreign insurer is organized under the laws of another state within the US

All of the following are designed as private passenger vehicles EXCEPT

A four wheel vehicle used as a taxi by an individual and not a company

Which statement accurately describes de-mutualization

A mutual insurance company that decides to convert to a stock company

A claimant can be any of the following EXCPT

A person who is conducting an investigation of a claim on behalf of the insurer

Which type of coverage protects against loss caused by earth movement?

A stand alone earthquake insurance policy specifically insuring against loss caused by land subsidence

Which of the following is TRUE regarding nonadmitted insurers?

Acting as an agent for a nonadmitted insurer is considered a misdemeanor

ALL of the following are examples of open policies EXCEPT

Agreed Value

Who is eligible to submit applications under the California Fair Access to Insurance Requirements?

All insurers authorized to transact basic property insurance in California are able to participate

Which condition is NOT required to be met for a surplus line broker to advise any home state insured or applicate that coverage has been, or will be obtained from a nonadmitted insurer?

An annual payment as been received by the insurer?

Who is legally capable to estimate the replacement value of a structure and discuss homeowners policy coverage levels?

An insurer underwriter or actuary

Which of the following is TRUE regarding continuing education requirements of an agent or broker?

Any licensee shall satisfactorily complete 24 hours of instruction prior to license renewal

Which of the following is TRUE regarding who qualifies for coverage under the California Fair Access to Insurance Requirements plan?

Any person who is unable to obtain basic property insurance through normal channels

Where must the address be printed for the principal office that is required for every broker agent and resident insurance casualty broker-agent?

Applications for license and renewals

When may a representation be altered or withdrawn?

Before the insurance is effected.

What criteria must a person meet in order to be qualified to purchase a good driver discount policy?

Being licensed to drive a motor vehicle for the previous 3 years and has not had more than 1 violation point as determined by the CIC

If fiduciary funds are received by any licensee, the funds shall be maintained in any of the following EXCEPT

Bods issued in all 50 states of the US

How can a licensee surrender any license for cancellation?

By submitted written notice or delivering the license to the commissioner

All of the following are authorized activities for the limited lines automobile insurance agents EXCEPT if the agent

Charges and collects a brokers fee for service

Which of the following must be prominently displayed so that it can be readily inspected on the licensee?

Currency and capacity

Which is NOT a duty of the Workers Compensation Bureau?

Determine which claims are approved and which are denied.

Which is TRUE regarding expectant or contingent Interest?

Expectant or contingent interest does NOT constitute insurable interest

A "personal lines" agent or broker is allowed to transact what type of insurance coverage?

Noncommercial automobile and residential property

What is the punishment for a person who refuses to deliver books, records, or assets to the commissioner when subject to a seizure order in an insolvency proceeding?

Not more than a 1k fine and/or 1 year imprisonment

Which of the following is TRUE regarding a Concurrent cause involving perils both covered and non covered?

Only the peril specified in the policy is covered.

A personal lines licensee is an agent-broker who is able to transact coverage for all the following EXCEPT

Personal Aircraft

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

Proof of claim

In conducting the business and affairs of the state compensation insurance fund it must meet all of the following criteria EXCEPT

Sell life insurance covering compensation benefits

Which of the following can the insurer do if the insured intentionally conceals or misrepresents a material fact concerning any coverage part?

Rescind the contract.

Who must be able to inspect records of insurance transactions made available by agent-brokers at any time?

The Insurance commissioner

A standard fire insurance policy contains the following details EXCEPT

The address of the insured

The Insurance Commissioner may deny an application for any license issued for any of the following EXECPT

The applicant is lacking in good judgement

While both work with an insurer, how does an "Insurance broker" differ from an "insurance agent"?

The broker does not transact on behalf of an insurer, while the agent does

Except in a case where the property is being held as a carrier or depository, what is the insurance interest is measured by?

The extent to which the insured would be damnified by loss or injury to the property

All of the following are to be specified in an insurance policy EXCEPT

The financial rating of the insured

The Managing General Agent negotiates and binds ceding insurance on behalf of whom?

The insurer

In order for an insurer to contract with the state compensation insurance fund it must meet all of the following criteria EXCEPT

The insurer has met all ration requirements for risk based capital RBC

Which two pieces of information are required to be on all business cards, printed quotes, and printed advertisements distributed exclusively within the state?

The license number of the licensee and the word "insurance"

Who is authorized to adjust or pay claims in excess of an amount determined by the comissioner?

The managing general agent

All of the following are requirements for determining an area that qualifies for Low Cost Automobile Insurance EXCEPT

The number of automobile accidents that occur within the county

All of the following are TRUE regarding the process to change the California Code of Regulations EXCPT

The office of administrative law may substitute its own judgement for that of the rulemaking agency

Unless otherwise specified in the insurance contract, all of the following are TRUE regarding return of premium EXCEPT

The premium is forfeited if the policy is cancelled

How many classes of insurance are defined under California insurance law including "miscellaneous" and "reserved"?

There are a total of 20 classes of insurance under CA insurance law with sub classes

Which of the following is a party to a contract of insurance bound to communicate EXCEPT

Those which the other would know by retaining a consultant with specialized knowledge in insurance matters.

What is the primary function of the California Automotive Assigned Risk Plan? CARRP

To put people who have trouble obtaining insurance in touch with insurers who may be required by law to insure them.

Which of the following actions is considered part of the insurance sales process?

Transaction of matters subsequent to execution of the contract and arising out of it

As used in the insurance code, the word "Shall" is mandatory and the word "may" is permissive EXCEPT

Unless otherwise apparent from the context

Which circumstances in a pretext interview determine if the questions are permissible?

When an insured is consulted by a person who hides his true identify on purpose when fraud for a claim is suspected

At which point is a person licensed as a broker-agent deemed to be acting as an insurance agent?

when a notice of appointment is filed with the insurance commissioner

When can a rate be denied by the Department?

when it is inadequate and excessive