CA - Life, Accident, and Health or Sickness
Practice Exam 2, PSI: LIFE, ACCIDENT, AND
HEALTH PRACTICE EXAM
How does an "admitted" person differ from an "nonadmitted" person, as it pertains to insurance
O O O O O O O O O O O O O O
?- O
OANSWER An "admitted" person has the right to transact insurance business within the state, wh
O O O O O O O O O O O O O O
ile a "nonadmitted" person is not entitled to this action.
O O O O O O O O O
Which of the following provisions of free insurance offered as an incentive to purchase or rent p
O O O O O O O O O O O O O O O O
roperty is TRUE? - ANSWER It requires a separate charge or fee.
O O O O O O O O O O O
Which statement accurately describes de-mutualization? -
O O O O O
ANSWER a mutual insurance company that decides to convert to a stock company
O O O O O O O O O O O O O
When should an insurer provide for the continuous operation of a unit or division to investigate
O O O O O O O O O O O O O O O O
possible fraudulent claims? -
O O O
ANSWER If admitted to do business in this state, except those otherwise exempted.
O O O O O O O O O O O O O
A claimant can be any of the following EXCEPT -
O O O O O O O O O
ANSWER a person who is conducting an investigation of a claim on behalf of an insurer.
O O O O O O O O O O O O O O O O
When can a person act as an agent of the insurer? -
O O O O O O O O O O O
ANSWER when the insurer has filed with the commissioner a notice of appointment
O O O O O O O O O O O O O
When working on behalf of an insurer for which they are not specifically appointed, what may a
O O O O O O O O O O O O O O O O O
licensed agent do? - O O O
OANSWER present a proposal for insurance and transmit an application to the insurer
O O O O O O O O O O O O
,What does concealment, whether intentional or unintentional, entitle the injured party to? -
O O O O O O O O O O O O
ANSWER The insurer may rescind the contract on the basis of misrepresentation, concealment,
O O O O O O O O O O O O O O
or fraud by the insured.
O O O O
All of the following define insolvency EXCEPT -
O O O O O O O
ANSWER revocation of certificate of authority by the commissioner.
O O O O O O O O O
Which of the following is TRUE regarding continuing education requirements of an agent or brok
O O O O O O O O O O O O O O
er? - O
ANSWER Any licensee shall satisfactorily complete 24 hours of instruction prior to license renew
O O O O O O O O O O O O O O
al.
Which of the following actions is considered part of the insurance sales process? -
O O O O O O O O O O O O O
ANSWER Transaction of matters subsequent to execution of the contract and arising out of it.
O O O O O O O O O O O O O O O
All the following are requirements for an agent who advertises and transacts business on the Int
O O O O O O O O O O O O O O O
ernet EXCEPT - ANSWER his or her most recent license and appointment date.
O O O O O O O O O O O O
A person who does NOT hold a valid license may do which of the following -
O O O O O O O O O O O O O O O
ANSWER examine contracts of insurance.
O O O O O
As used in the insurance code, the word "shall" is mandatory and the word "may" is permissive
O O O O O O O O O O O O O O O O O
EXCEPT - ANSWER unless otherwise apparent from the context.
O O O O O O O O
Which of the following is TRUE regarding the use of fictitious names for business? -
O O O O O O O O O O O O O O
ANSWER The actual and fictitious business names must be registered with the commissioner.
O O O O O O O O O O O O O
It is unlawful to do any of the following EXCEPT -
O O O O O O O O O O
OANSWER make or cause to made a knowingly false or fraudulent or material representation for
O O O O O O O O O O O O O O O
the purpose of encouraging an injured worker to claim benefits.
O O O O O O O O O
, An insurance agent is a person who transacts all of the following types of insurance EXCEPT -
O O O O O O O O O O O O O O O O
ANSWER life insurance.
O O O
Which of the following is TRUE regarding nonadmitted insurers? -
O O O O O O O O O
ANSWER Acting as an agent for a nonadmitted insurer is considered a misdemeanor.
O O O O O O O O O O O O O
According to CIC Section 1711, an organization ceases to exist as an entity eligible to hold a licen
O O O O O O O O O O O O O O O O O
se EXCEPT - ANSWER upon the termination of all contracts.
O O O O O O O O O
What is a solicitor employed to do for a policy other than life? -
O O O O O O O O O O O O O
ANSWER To aid a property and casualty agent or broker in transacting insurance.
O O O O O O O O O O O O O
Which of the following is the method wherein a contract of insurance is finalized as relates to th
O O O O O O O O O O O O O O O O O
e sales process? - ANSWER Execution of a contract of insurance
O O O O O O O O O O
When may a surplus line broker solicit and place insurance for a home state insured with a nona
O O O O O O O O O O O O O O O O O
dmitted insurer? - O O
ANSWER If the same insurance coverage cannot be procured from an admitted insurer.
O O O O O O O O O O O O O
Which circumstances in a pretext interview determine if the questions are permissible? -
O O O O O O O O O O O O
ANSWER When an insured is consulted by a person who hides his true identity on purpose whe
O O O O O O O O O O O O O O O O O
n fraud for a claim is suspected.
O O O O O O
Which of the following is an insurer allowed to do in the event of a claim? -
O O O O O O O O O O O O O O O O
ANSWER request a medical examination for the purpose of determining liability under a policy
O O O O O O O O O O O O O O O
provision
Concealment, whether intentional or unintentional, entitles the injured party to? -
O O O O O O O O O O
ANSWER Rescind insurance.
O O O
Practice Exam 2, PSI: LIFE, ACCIDENT, AND
HEALTH PRACTICE EXAM
How does an "admitted" person differ from an "nonadmitted" person, as it pertains to insurance
O O O O O O O O O O O O O O
?- O
OANSWER An "admitted" person has the right to transact insurance business within the state, wh
O O O O O O O O O O O O O O
ile a "nonadmitted" person is not entitled to this action.
O O O O O O O O O
Which of the following provisions of free insurance offered as an incentive to purchase or rent p
O O O O O O O O O O O O O O O O
roperty is TRUE? - ANSWER It requires a separate charge or fee.
O O O O O O O O O O O
Which statement accurately describes de-mutualization? -
O O O O O
ANSWER a mutual insurance company that decides to convert to a stock company
O O O O O O O O O O O O O
When should an insurer provide for the continuous operation of a unit or division to investigate
O O O O O O O O O O O O O O O O
possible fraudulent claims? -
O O O
ANSWER If admitted to do business in this state, except those otherwise exempted.
O O O O O O O O O O O O O
A claimant can be any of the following EXCEPT -
O O O O O O O O O
ANSWER a person who is conducting an investigation of a claim on behalf of an insurer.
O O O O O O O O O O O O O O O O
When can a person act as an agent of the insurer? -
O O O O O O O O O O O
ANSWER when the insurer has filed with the commissioner a notice of appointment
O O O O O O O O O O O O O
When working on behalf of an insurer for which they are not specifically appointed, what may a
O O O O O O O O O O O O O O O O O
licensed agent do? - O O O
OANSWER present a proposal for insurance and transmit an application to the insurer
O O O O O O O O O O O O
,What does concealment, whether intentional or unintentional, entitle the injured party to? -
O O O O O O O O O O O O
ANSWER The insurer may rescind the contract on the basis of misrepresentation, concealment,
O O O O O O O O O O O O O O
or fraud by the insured.
O O O O
All of the following define insolvency EXCEPT -
O O O O O O O
ANSWER revocation of certificate of authority by the commissioner.
O O O O O O O O O
Which of the following is TRUE regarding continuing education requirements of an agent or brok
O O O O O O O O O O O O O O
er? - O
ANSWER Any licensee shall satisfactorily complete 24 hours of instruction prior to license renew
O O O O O O O O O O O O O O
al.
Which of the following actions is considered part of the insurance sales process? -
O O O O O O O O O O O O O
ANSWER Transaction of matters subsequent to execution of the contract and arising out of it.
O O O O O O O O O O O O O O O
All the following are requirements for an agent who advertises and transacts business on the Int
O O O O O O O O O O O O O O O
ernet EXCEPT - ANSWER his or her most recent license and appointment date.
O O O O O O O O O O O O
A person who does NOT hold a valid license may do which of the following -
O O O O O O O O O O O O O O O
ANSWER examine contracts of insurance.
O O O O O
As used in the insurance code, the word "shall" is mandatory and the word "may" is permissive
O O O O O O O O O O O O O O O O O
EXCEPT - ANSWER unless otherwise apparent from the context.
O O O O O O O O
Which of the following is TRUE regarding the use of fictitious names for business? -
O O O O O O O O O O O O O O
ANSWER The actual and fictitious business names must be registered with the commissioner.
O O O O O O O O O O O O O
It is unlawful to do any of the following EXCEPT -
O O O O O O O O O O
OANSWER make or cause to made a knowingly false or fraudulent or material representation for
O O O O O O O O O O O O O O O
the purpose of encouraging an injured worker to claim benefits.
O O O O O O O O O
, An insurance agent is a person who transacts all of the following types of insurance EXCEPT -
O O O O O O O O O O O O O O O O
ANSWER life insurance.
O O O
Which of the following is TRUE regarding nonadmitted insurers? -
O O O O O O O O O
ANSWER Acting as an agent for a nonadmitted insurer is considered a misdemeanor.
O O O O O O O O O O O O O
According to CIC Section 1711, an organization ceases to exist as an entity eligible to hold a licen
O O O O O O O O O O O O O O O O O
se EXCEPT - ANSWER upon the termination of all contracts.
O O O O O O O O O
What is a solicitor employed to do for a policy other than life? -
O O O O O O O O O O O O O
ANSWER To aid a property and casualty agent or broker in transacting insurance.
O O O O O O O O O O O O O
Which of the following is the method wherein a contract of insurance is finalized as relates to th
O O O O O O O O O O O O O O O O O
e sales process? - ANSWER Execution of a contract of insurance
O O O O O O O O O O
When may a surplus line broker solicit and place insurance for a home state insured with a nona
O O O O O O O O O O O O O O O O O
dmitted insurer? - O O
ANSWER If the same insurance coverage cannot be procured from an admitted insurer.
O O O O O O O O O O O O O
Which circumstances in a pretext interview determine if the questions are permissible? -
O O O O O O O O O O O O
ANSWER When an insured is consulted by a person who hides his true identity on purpose whe
O O O O O O O O O O O O O O O O O
n fraud for a claim is suspected.
O O O O O O
Which of the following is an insurer allowed to do in the event of a claim? -
O O O O O O O O O O O O O O O O
ANSWER request a medical examination for the purpose of determining liability under a policy
O O O O O O O O O O O O O O O
provision
Concealment, whether intentional or unintentional, entitles the injured party to? -
O O O O O O O O O O
ANSWER Rescind insurance.
O O O
