PSI - LIFE, ACCIDENT, AND HEALTH - FULL A+ EXAM QUESTIONS & ANSWERS

What happens under a misstatement of age clause on a disability policy? 1. The policy would be terminated and all premiums would be returned to the policy owner. 2. The policy would be terminated and all premiums would be retained by the insurance company. 3. All amounts payable under this policy shall be what the premium originally would have purchased and been paid at the correct age. 4. Prior to any benefits being payable, the insured shall rate and pay the difference in premiums based upon his correct age - ANSWER-All amounts payable under this policy shall be what the premium originally would have purchased and been paid at the correct age. Whether admitted or nonadmitted, how does a "foreign" insurer differ from an "alien" or "domestic" insurer? 1. A "foreign" insurer is organized under the laws of another country. 2. A "foreign" insurer is prohibited from transacting insurance with the State of California. 3. A "foreign" insurer is organized under the laws of another state within the United States. 4. A "foreign" insurer transacts business in multiple languages not spoken in the United States. - ANSWER-A "foreign" insurer is organized under the laws of another state within the United States.