One knows if he or she is pansexual if one does not entirely regard gender, race, creed, etc.
Pansexuality is attraction on a more spiritual level, one might say, and focuses on who the target of affection is, rather than "what," as do other sexualities.
That being said, pansexuality and physical attraction--or a compulsion toward one sex more than the other--are not mutually exclusive; a pansexual can be attracted to someone physically and can have gender preferences for these attractions, just as those more concerned with physical attributes and/or genders often will additionally regard spiritual or personal attributes of potential lovers.
In summary, pansexuality is love for a person simply for who he or she is, with little to no concern for what he or she is.
Pansexual - Pan (all) + sexual; possible misnomer
Person 2 - Ewww, so you fuck dogs?!
Person 2 - No. Pansexuality doesn't involve beastiality at all.