PSI Life, Accident and Health Practice
Exam Questions
____________ is the initial step of the total process of insuring a health risk.
✓field underwriting
_______________ is the process of selection, classification and rating, and
determining if someone is insurable. ✓home office underwriting
"Person" means all of the following EXCEPT
1
an association.
2
a corporation.
3
a business trust.
4
an organizational trust. ✓4
an organizational trust.
A ____________ places insurance with a non-admitted insurer when
insurance cannot be placed with an admitted insurer ✓surplus lines
producer
A ______________ Insurance Company is directed by officers and directors
and has a stated amount of capital stock owned by stockholders ✓Stock
,A beneficiary receives ample income each month from the interest earned
while the insurance company retains the principal. This is referred to as:
✓capital conservation
A licensed life agent may __________ on behalf of a life insurer for which
the life agent is not specifically appointed. ✓Present a proposal for
insurance to a prospective policyholder
A Life and Disability Analyst cannot be employed or paid by the insurer
and must meet all of the following requirements, except:
1
Be a resident of the state of California
2
Be at least age 18
3
Pass a written examination prepared by the Commissioner
4
Have worked as a life licensee or employee of a licensee for 5 years ✓2
Be at least age 18
A loss exposure is best defined as: ✓the possibility of a loss
A person licensed to write insurance coverage with non-admitted insurers
when such coverage cannot be placed with an admitted insurer is a(n):
✓Surplus lines broker
A policy shall specify all of the following EXCEPT
1
the property or life insured.
,2
the parties between whom the contract is made.
3
the period during which the insurance is to continue.
4
the method in which the coverage amount was calculated. ✓4
the method in which the coverage amount was calculated.
A producer gathers information about the applicant for the insurer in order
to avoid adverse selection. This is considered to be: ✓field underwriting
A Property & Casualty Broker-Agent who is also licensed as a Life-Only
agent may not charge a fee to a consumer for: ✓Analyzing a person's
universal life insurance policy
A small business owner used her life insurance policy as collateral for a
bank loan. The face amount of the whole life policy was $100,000 and the
original amount of the loan was $20,000. If the outstanding loan balance
at the time the small business owner died was $10,000, how much will the
policy's named beneficiary receive? ✓$90,000
A Straight Whole Life Policy has a _________ __________ premium and face
value for the life of the insured ✓level guaranteed
A(n) ___________ designed to produce leads must prominently disclose that
'an insurance agent will contact you', if that is the case. ✓advertisement
According to CIC Section 1711, an organization ceases to exist as an
entity eligible to hold a license EXCEPT
1
upon dissolution of a corporation.
, 2
upon the termination of all contracts.
3
upon dissolution of a copartnership.
4
upon the termination of an association. ✓2
upon the termination of all contracts.
After receiving a claim, the insurer must correspond with the claimant at
intervals of not less than how many days until the claim is resolved? ✓30
After what time period is the policy considered to have been delivered in
an acceptable way if premiums have been paid?
1
after 6 months if the premiums have been paid
2
after 1 year if the premiums have been paid by the insured
3
30 days after the first premium has been received by the insurer
4
only if a written receipt is obtained at the time of delivery, regardless of
paid premiums ✓1
after 6 months if the premiums have been paid
Albert owns a printing business in which he, at times, prints counterfeit
money. One day while processing counterfeit bills, his arm is severely
damaged. His insurance will: ✓Not cover the claim since he was involved
in an illegal act at the time of injury
Exam Questions
____________ is the initial step of the total process of insuring a health risk.
✓field underwriting
_______________ is the process of selection, classification and rating, and
determining if someone is insurable. ✓home office underwriting
"Person" means all of the following EXCEPT
1
an association.
2
a corporation.
3
a business trust.
4
an organizational trust. ✓4
an organizational trust.
A ____________ places insurance with a non-admitted insurer when
insurance cannot be placed with an admitted insurer ✓surplus lines
producer
A ______________ Insurance Company is directed by officers and directors
and has a stated amount of capital stock owned by stockholders ✓Stock
,A beneficiary receives ample income each month from the interest earned
while the insurance company retains the principal. This is referred to as:
✓capital conservation
A licensed life agent may __________ on behalf of a life insurer for which
the life agent is not specifically appointed. ✓Present a proposal for
insurance to a prospective policyholder
A Life and Disability Analyst cannot be employed or paid by the insurer
and must meet all of the following requirements, except:
1
Be a resident of the state of California
2
Be at least age 18
3
Pass a written examination prepared by the Commissioner
4
Have worked as a life licensee or employee of a licensee for 5 years ✓2
Be at least age 18
A loss exposure is best defined as: ✓the possibility of a loss
A person licensed to write insurance coverage with non-admitted insurers
when such coverage cannot be placed with an admitted insurer is a(n):
✓Surplus lines broker
A policy shall specify all of the following EXCEPT
1
the property or life insured.
,2
the parties between whom the contract is made.
3
the period during which the insurance is to continue.
4
the method in which the coverage amount was calculated. ✓4
the method in which the coverage amount was calculated.
A producer gathers information about the applicant for the insurer in order
to avoid adverse selection. This is considered to be: ✓field underwriting
A Property & Casualty Broker-Agent who is also licensed as a Life-Only
agent may not charge a fee to a consumer for: ✓Analyzing a person's
universal life insurance policy
A small business owner used her life insurance policy as collateral for a
bank loan. The face amount of the whole life policy was $100,000 and the
original amount of the loan was $20,000. If the outstanding loan balance
at the time the small business owner died was $10,000, how much will the
policy's named beneficiary receive? ✓$90,000
A Straight Whole Life Policy has a _________ __________ premium and face
value for the life of the insured ✓level guaranteed
A(n) ___________ designed to produce leads must prominently disclose that
'an insurance agent will contact you', if that is the case. ✓advertisement
According to CIC Section 1711, an organization ceases to exist as an
entity eligible to hold a license EXCEPT
1
upon dissolution of a corporation.
, 2
upon the termination of all contracts.
3
upon dissolution of a copartnership.
4
upon the termination of an association. ✓2
upon the termination of all contracts.
After receiving a claim, the insurer must correspond with the claimant at
intervals of not less than how many days until the claim is resolved? ✓30
After what time period is the policy considered to have been delivered in
an acceptable way if premiums have been paid?
1
after 6 months if the premiums have been paid
2
after 1 year if the premiums have been paid by the insured
3
30 days after the first premium has been received by the insurer
4
only if a written receipt is obtained at the time of delivery, regardless of
paid premiums ✓1
after 6 months if the premiums have been paid
Albert owns a printing business in which he, at times, prints counterfeit
money. One day while processing counterfeit bills, his arm is severely
damaged. His insurance will: ✓Not cover the claim since he was involved
in an illegal act at the time of injury
