PSI - LIFE, ACCIDENT, AND HEALTH – FULL EXAM QUESTIONS AND ANSWERS

PSI - LIFE, ACCIDENT, AND HEALTH – FULL EXAM QUESTIONS AND ANSWERS



1. What happens under a misstatement of age clause on a disability policy? 1.
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The policy would be terminated and all premiums would be returned to the policy owner.
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2.
The policy would be terminated and all premiums would be retained by the insurance com
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pany.
3.
All amounts payable under this policy shall be what the premium originally would have pu
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chased and been paid at the correct age.
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4.
Prior to any benefits being payable, the insured shall rate and pay the differ-
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uence in premiums based upon his correct age: All amounts payable under this policy shall
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e what the premium originally would have purchased and been paid at the correct age.
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2. Whether admitted or nonadmitted, how does a "foreign" insurer differ from an "alien" o
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domestic" insurer? u


1.
A "foreign" insurer is organized under the laws of another country. 2.
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A "foreign" insurer is prohibited from transacting insurance with the State of California.
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3.
A "foreign" insurer is organized under the laws of another state within the United States.
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4.
A "foreign" insurer transacts business in multiple languages not spoken in the United Sta
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tes.: A "foreign" insurer is organized under the laws of another state within the United States.
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3. Which of the following is TRUE regarding nonadmitted insurers? 1.
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A felony is committed by the agent in the state of a nonadmitted insurer. 2.
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Acting as an agent for a nonadmitted insurer is considered a misdemeanor. 3.
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The agent shall pay $1,000 in addition to any fees involving the commission of a felony.
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4.

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,Specific penalties shall be determined by the Insurance Commissioner on a
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,case by case basis.: Acting as an agent for a nonadmitted insurer is considered a misdemean
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r.
4. What happens if an owner requests an immediate investment of monies in a variable
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annuity policy be returned during the 30 day cancellation period? 1.
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The owner shall forfeit any money invested. 2.
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The owner shall receive the market value at the time of the cancellation. 3.
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The owner shall receive a refund of premium but nothing earned during cancellation perio
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.
4.
The owner shall receive a full refund of premium, plus the market value, minus any commi
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ssion fees.: The owner shall receive the market value at the time of the cancellation.
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5. Can any life insurer issue group life insurance with premium rates less than the usual ra
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tes for such insurance?
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1.
Yes, when the Department of Insurance has requested they do so. 2.
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Yes, if the insurer has filed an exemption form to do so. 3.
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Yes, they may do so on any group plan, with or without annuities. 4.
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No, there are no circumstances when this is allowed.: Yes, they may do so on any group pla
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n, with or without annuities
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6. Which of the following is TRUE regarding the use of fictitious names for business?
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1.
Fictitious names do not need to be reported like actual personal or business names.
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2.
The actual and fictitious business names must be registered with the commis- sioner.
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3.
The licensee may register 3 or more fictitious names in addition to their real name the firs
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year.
4.
A licensee may continue to use for 10 days a fictitious name prohibited by the
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, commissioner until notification.: The actual and fictitious business names must be register
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ed with the commissioner
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7. Which is TRUE regarding a life and health agent who has not been specifi-
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ucally appointed by the insurer?
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1.
The insurer is obliged to accept the application for underwriting from the life agent.
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2.
If a policy is issued, the agent is required to forfeit any commission unless appointed.
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3.
The insurer is required to report the agent appointment within 21 days of the policy issue.
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4.
If a policy is issued, the insurer is considered to have authorized the agent to act on its be
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half.: If a policy is issued, the insurer is considered to have authorized the agent to act on its
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behalf
8. Except as provided by sections 10203.5 and 10203.8 in the CIC, the insurer shall provi
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de which document to be delivered by the employer to the employ- ee?
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1.
A copy of the insurance policy. 2.
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An individual certificate of insurance. 3.
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A vestment schedule showing what the policy will be worth. 4.
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An individual packet including the application and the policy.: An individual certificate of in
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urance.
9. After what time period is the policy considered to have been delivered in an acceptable
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way if premiums have been paid?
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1.
after 6 months if the premiums have been paid 2.
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after 1 year if the premiums have been paid by the insured 3.
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30 days after the first premium has been received by the insurer 4.
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