PSI - LIFE, ACCIDENT, AND HEALTH questions
with correct 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 Correct 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. Correct Answer-A "foreign" insurer is organized
under the laws of another state within the United States.
Which of the following is TRUE regarding nonadmitted insurers?
1.
A felony is committed by the agent in the state of a nonadmitted insurer.
2.
Acting as an agent for a nonadmitted insurer is considered a
misdemeanor.
3.
The agent shall pay $1,000 in addition to any fees involving the
commission of a felony.
4.
Specific penalties shall be determined by the Insurance Commissioner
on a case by case basis. Correct Answer-Acting as an agent for a
nonadmitted insurer is considered a misdemeanor.
What happens if an owner requests an immediate investment of monies
in a variable annuity policy be returned during the 30 day cancellation
period?
1.
,The owner shall forfeit any money invested.
2.
The owner shall receive the market value at the time of the cancellation.
3.
The owner shall receive a refund of premium but nothing earned during
cancellation period.
4.
The owner shall receive a full refund of premium, plus the market value,
minus any commission fees. Correct Answer-The owner shall receive
the market value at the time of the cancellation.
Can any life insurer issue group life insurance with premium rates less
than the usual rates for such insurance?
1.
Yes, when the Department of Insurance has requested they do so.
2.
Yes, if the insurer has filed an exemption form to do so.
3.
Yes, they may do so on any group plan, with or without annuities.
4.
No, there are no circumstances when this is allowed. Correct Answer-
Yes, they may do so on any group plan, with or without annuities
Which of the following is TRUE regarding the use of fictitious names
for business?
, 1.
Fictitious names do not need to be reported like actual personal or
business names.
2.
The actual and fictitious business names must be registered with the
commissioner.
3.
The licensee may register 3 or more fictitious names in addition to their
real name the first year.
4.
A licensee may continue to use for 10 days a fictitious name prohibited
by the commissioner until notification. Correct Answer-The actual and
fictitious business names must be registered with the commissioner
Which is TRUE regarding a life and health agent who has not been
specifically appointed by the insurer?
1.
The insurer is obliged to accept the application for underwriting from the
life agent.
2.
If a policy is issued, the agent is required to forfeit any commission
unless appointed.
3.
The insurer is required to report the agent appointment within 21 days of
the policy issue.
4.
with correct 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 Correct 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. Correct Answer-A "foreign" insurer is organized
under the laws of another state within the United States.
Which of the following is TRUE regarding nonadmitted insurers?
1.
A felony is committed by the agent in the state of a nonadmitted insurer.
2.
Acting as an agent for a nonadmitted insurer is considered a
misdemeanor.
3.
The agent shall pay $1,000 in addition to any fees involving the
commission of a felony.
4.
Specific penalties shall be determined by the Insurance Commissioner
on a case by case basis. Correct Answer-Acting as an agent for a
nonadmitted insurer is considered a misdemeanor.
What happens if an owner requests an immediate investment of monies
in a variable annuity policy be returned during the 30 day cancellation
period?
1.
,The owner shall forfeit any money invested.
2.
The owner shall receive the market value at the time of the cancellation.
3.
The owner shall receive a refund of premium but nothing earned during
cancellation period.
4.
The owner shall receive a full refund of premium, plus the market value,
minus any commission fees. Correct Answer-The owner shall receive
the market value at the time of the cancellation.
Can any life insurer issue group life insurance with premium rates less
than the usual rates for such insurance?
1.
Yes, when the Department of Insurance has requested they do so.
2.
Yes, if the insurer has filed an exemption form to do so.
3.
Yes, they may do so on any group plan, with or without annuities.
4.
No, there are no circumstances when this is allowed. Correct Answer-
Yes, they may do so on any group plan, with or without annuities
Which of the following is TRUE regarding the use of fictitious names
for business?
, 1.
Fictitious names do not need to be reported like actual personal or
business names.
2.
The actual and fictitious business names must be registered with the
commissioner.
3.
The licensee may register 3 or more fictitious names in addition to their
real name the first year.
4.
A licensee may continue to use for 10 days a fictitious name prohibited
by the commissioner until notification. Correct Answer-The actual and
fictitious business names must be registered with the commissioner
Which is TRUE regarding a life and health agent who has not been
specifically appointed by the insurer?
1.
The insurer is obliged to accept the application for underwriting from the
life agent.
2.
If a policy is issued, the agent is required to forfeit any commission
unless appointed.
3.
The insurer is required to report the agent appointment within 21 days of
the policy issue.
4.
