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PSI Exam Questions and Answers | Latest Version | 2025/2026 | Correct & Verified
What is the purpose of "contents coverage" in homeowners insurance?✔✔It protects personal belongings inside the home from damage or theft
What is "personal injury protection (PIP)" in auto insurance?✔✔It covers medical expenses and lost wages for the insured and passengers regardless of fault
What is "blanket coverage" in property insurance?✔✔It covers multiple properties or types of property under one policy
What is "insurance fraud"?✔✔It is the act of providing false information to an insurer to receive benefits or coverage that isn’t deserved
What does "loss payee" mean in an insurance policy? 1 / 3
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✔✔It is a person or entity designated to receive payment for claims, typically in a situation where a loan or mortgage is involved
What is the role of "claims adjusters" in the settlement process?✔✔They evaluate insurance claims and determine the appropriate payout based on the policy terms
What does "medical expense coverage" include in homeowners insurance?✔✔It covers medical costs for injuries that occur on the insured property, regardless of fault
What is the "insurance policy period"?✔✔The specific time frame during which the insurance policy provides coverage
What is "cash value" in property insurance?✔✔It refers to the depreciated value of an item, which is what the insurer will pay after considering depreciation
What is the purpose of "temporary vehicle replacement" in auto insurance? 2 / 3
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✔✔It provides coverage for a rental car if your vehicle is damaged or in the shop for repairs
What is a "loss ratio" in insurance?✔✔It is a measure of the claims paid by an insurer compared to the premiums earned
What does "occurrence-based coverage" refer to in insurance?✔✔It covers claims that arise from events that happen during the policy period, regardless of when the claim is filed
What does "claims-made coverage" refer to in insurance?✔✔It covers claims that are made during the policy period, regardless of when the event causing the claim occurred
What is "collision insurance" for vehicles?✔✔It covers damage to the insured vehicle resulting from a collision, regardless of fault
What is the purpose of "earthquake insurance" in property coverage?✔✔It provides financial protection for property damage caused by earthquakes
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