Hi,
As you guessed, all sources with TYPE='PSF' get SERSIC=0.
It's important to understand that the catalogs contain "above-the-atmosphere" shape estimates for galaxies -- we're reporting what we think you would see in perfect seeing, not what we actually observed in a variety of conditions in many different images.
As such, sources identified with PSF are the ones we really think are point-like. We do a model-selection test, first PSF again REX -- categorizing objects as point-like or maybe resolved -- and then for resolved things, we fit DEV and EXP, and if one of those is accepted as a better fit, we try SERsic.
(Also: for Sersic, large n are the sharper profiles.)
cheers,
dustin