PSI Practice Exam
Who is eligible to be an insurer? - CORRECT ANSWER-The direct writing
distribution model utilizes:Any person, company, organization, or corporation that
is capable of making a contract.
Which is an INACCURATE statement on the purpose and intent of the Insurance
Information and Privacy Protection Act? - CORRECT ANSWER-The Act permits
disclosure of insurance underwriting information and claim history records.
Which of the following provisions of free insurance offered as an incentive to
purchase or rent property is TRUE? - CORRECT ANSWER-It requires a
separate charge or fee.
Which group of people is offered additional protection by the Unfair Practices Act
that regulates trade practices in the business of insurance? - CORRECT
ANSWER-survivors of the Holocaust
An "insurance agent" means a person authorized, by and on behalf of an insurer,
to transact which of the following class of insurance? - CORRECT
ANSWER-Annuities
Which circumstances in a pretext interview determine if the questions are
permissible? - CORRECT 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 terms refers to any evidence or documentation in the
possession of the insurer that provides any evidence of a claim and that
reasonably supports the magnitude or the amount of the claimant loss? -
CORRECT ANSWER-Proof of claim
If fiduciary funds are received by any licensee, the funds shall be maintained in
any of the following EXCEPT - CORRECT ANSWER-bonds issued in all 50
states of the United States.
, Which of the following is TRUE regarding change of address for a licensee? -
CORRECT ANSWER-The commissioner must be notified immediately of any
change in the personal, business, or email address.
All of the following define insolvency EXCEPT - CORRECT ANSWER-revocation
of certificate of authority by the commissioner.
When should an insurer provide for the continuous operation of a unit or division
to investigate possible fraudulent claims? - CORRECT ANSWER-If admitted to
do business in this state, except those otherwise exempted.
According to CIC Section 1711, an organization ceases to exist as an entity
eligible to hold a license EXCEPT - CORRECT ANSWER-upon the termination of
all contracts.
Concealment, whether intentional or unintentional, entitles the injured party to? -
CORRECT ANSWER-Rescind insurance.
How is the insurance commissioner chosen? - CORRECT ANSWER-Elected by
the people.
What is the maximum fine for a person who transacts insurance without a valid
license? - CORRECT ANSWER-$50,000 and/or imprisonment for a period not
exceeding one year.
As used in the insurance code, the word "shall" is mandatory and the word "may"
is permissive EXCEPT - CORRECT ANSWER-unless otherwise apparent from
the context.
Which of the following is a party to a contract of insurance bound to communicate
EXCEPT - CORRECT ANSWER-those which the other would know by retaining
a consultant with specialized knowledge in insurance matters.
What makes a comprehensive long-term care policy unique from other long-term
care policies? - CORRECT ANSWER-Provides for both institutional and home
care.
Who is eligible to be an insurer? - CORRECT ANSWER-The direct writing
distribution model utilizes:Any person, company, organization, or corporation that
is capable of making a contract.
Which is an INACCURATE statement on the purpose and intent of the Insurance
Information and Privacy Protection Act? - CORRECT ANSWER-The Act permits
disclosure of insurance underwriting information and claim history records.
Which of the following provisions of free insurance offered as an incentive to
purchase or rent property is TRUE? - CORRECT ANSWER-It requires a
separate charge or fee.
Which group of people is offered additional protection by the Unfair Practices Act
that regulates trade practices in the business of insurance? - CORRECT
ANSWER-survivors of the Holocaust
An "insurance agent" means a person authorized, by and on behalf of an insurer,
to transact which of the following class of insurance? - CORRECT
ANSWER-Annuities
Which circumstances in a pretext interview determine if the questions are
permissible? - CORRECT 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 terms refers to any evidence or documentation in the
possession of the insurer that provides any evidence of a claim and that
reasonably supports the magnitude or the amount of the claimant loss? -
CORRECT ANSWER-Proof of claim
If fiduciary funds are received by any licensee, the funds shall be maintained in
any of the following EXCEPT - CORRECT ANSWER-bonds issued in all 50
states of the United States.
, Which of the following is TRUE regarding change of address for a licensee? -
CORRECT ANSWER-The commissioner must be notified immediately of any
change in the personal, business, or email address.
All of the following define insolvency EXCEPT - CORRECT ANSWER-revocation
of certificate of authority by the commissioner.
When should an insurer provide for the continuous operation of a unit or division
to investigate possible fraudulent claims? - CORRECT ANSWER-If admitted to
do business in this state, except those otherwise exempted.
According to CIC Section 1711, an organization ceases to exist as an entity
eligible to hold a license EXCEPT - CORRECT ANSWER-upon the termination of
all contracts.
Concealment, whether intentional or unintentional, entitles the injured party to? -
CORRECT ANSWER-Rescind insurance.
How is the insurance commissioner chosen? - CORRECT ANSWER-Elected by
the people.
What is the maximum fine for a person who transacts insurance without a valid
license? - CORRECT ANSWER-$50,000 and/or imprisonment for a period not
exceeding one year.
As used in the insurance code, the word "shall" is mandatory and the word "may"
is permissive EXCEPT - CORRECT ANSWER-unless otherwise apparent from
the context.
Which of the following is a party to a contract of insurance bound to communicate
EXCEPT - CORRECT ANSWER-those which the other would know by retaining
a consultant with specialized knowledge in insurance matters.
What makes a comprehensive long-term care policy unique from other long-term
care policies? - CORRECT ANSWER-Provides for both institutional and home
care.
