PSI CA Insurance Test Questions with
Verified Answers (100% Pass)
What is the procedure regarding change of address for a licensee? - Answer-The
commissioner must be notified immediately of any change in the personal, business,
or email address.
What is the punishment for a person who refuses to deliver books, records, or assets
to the commissioner when subject to a seizure order in an insolvency proceeding? -
Answer-Not more than $1000 fine and/or 1 year imprisonment
An agent or representative who issues long term care insurance must NOT do the
following - Answer-complete a total of 10 hours of continuing education if licensed
before January 1st, 2002.
According to the Administrative Procedures Act, what is required to make changes to
the California Insurance Code? - Answer-The Department of Insurance is required to
publish proposed changes at least 45 days prior to the hearing or decision to adopt
the change.
A person who does NOT hold a valid license may NOT do the following - Answer-
examine contracts of insurance.
Which of the following is TRUE regarding nonadmitted insurers? - Answer-Acting as
an agent for a nonadmitted insurer is considered a misdemeanor.
Which of the following is a party to a contract of insurance bound to communicate
EXCEPT - Answer-those which the other would know by retaining a consultant with
specialized knowledge in insurance matters.
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
Who is eligible to be an insurer? - Answer-Any person, company, organization, or
corporation that is capable of making a contract.
Whether admitted or nonadmitted, how does a "foreign" insurer differ from an "alien"
or "domestic" insurer? - Answer-A "foreign" insurer is organized under the laws of
another state within the United States.
All of the following are examples of representation EXCEPT - Answer-it may be
altered after the insurance is effected.
When examination of an insurer shows the insurer to be insolvent and a danger to
the public, which authority is granted to the Commissioner by the CIC? - Answer-The
commissioner may take possession of offices, books and property immediately
without court order.
Verified Answers (100% Pass)
What is the procedure regarding change of address for a licensee? - Answer-The
commissioner must be notified immediately of any change in the personal, business,
or email address.
What is the punishment for a person who refuses to deliver books, records, or assets
to the commissioner when subject to a seizure order in an insolvency proceeding? -
Answer-Not more than $1000 fine and/or 1 year imprisonment
An agent or representative who issues long term care insurance must NOT do the
following - Answer-complete a total of 10 hours of continuing education if licensed
before January 1st, 2002.
According to the Administrative Procedures Act, what is required to make changes to
the California Insurance Code? - Answer-The Department of Insurance is required to
publish proposed changes at least 45 days prior to the hearing or decision to adopt
the change.
A person who does NOT hold a valid license may NOT do the following - Answer-
examine contracts of insurance.
Which of the following is TRUE regarding nonadmitted insurers? - Answer-Acting as
an agent for a nonadmitted insurer is considered a misdemeanor.
Which of the following is a party to a contract of insurance bound to communicate
EXCEPT - Answer-those which the other would know by retaining a consultant with
specialized knowledge in insurance matters.
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
Who is eligible to be an insurer? - Answer-Any person, company, organization, or
corporation that is capable of making a contract.
Whether admitted or nonadmitted, how does a "foreign" insurer differ from an "alien"
or "domestic" insurer? - Answer-A "foreign" insurer is organized under the laws of
another state within the United States.
All of the following are examples of representation EXCEPT - Answer-it may be
altered after the insurance is effected.
When examination of an insurer shows the insurer to be insolvent and a danger to
the public, which authority is granted to the Commissioner by the CIC? - Answer-The
commissioner may take possession of offices, books and property immediately
without court order.
