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