CALIFORNIA PSI LIFE
INSURANCE EXAM
Insurance is which types of contract? - ANSWERS-One agrees to
indemnify against loss, damage or liability arising from a contingent
or unknown risk.
Where shall an express warranty be made? - ANSWERS-in the policy
itself
The following are all penalties for unlawfully acting as an insurer
without a certificate of authority EXCEPT - ANSWERS-the
individual will be banned from practicing insurance for a period of 5
years.
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? - ANSWERS-The commissioner may take
possession of offices, books and property immediately without court
order.
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? - ANSWERS-Not more than $1000 fine
and/or 1 year imprisonment
,When should an insurer provide for the continuous operation of a unit
or devision to investigate possible fraudulent claims? - ANSWERS-If
admitted to do business in this state, except those otherwise
exempted.
After what time period is the policy considered to have been delivered
in an acceptable way if premiums have been paid? - ANSWERS-After
6 months if the premiums have been paid
All of the following define insolvency EXCEPT - ANSWERS-
revocation of certificate of authority by the commissioner.
It is unlawful to do any of the following EXCEPT - ANSWERS-make
or cause to made a knowingly false or fraudulent or material
representation for the purpose of encouraging an injured worker to
claim benefits.
Which statement accurately describes de-mutualization? -
ANSWERS-a mutual insurance company that decides to convert to a
stock company
ALL of the following are TRUE regarding the process to change the
California Code of Regulations EXCEPT - ANSWERS-the Office of
Administrative Law (OAL) may substitute its own judgement for that
of the rulemaking agency
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? - ANSWERS-Proof of claim
When should an agent provide an applicant the effective date of
coverage, if known, or the circumstances under which coverage will
be effective? - ANSWERS-at the time of application or receipt of
premium
Which are assets that are in excess of an insurer's liability for reported
losses, expenses, taxes, and reinsurance of outstanding risks? -
ANSWERS-Paid-in capital
All of the following are examples of misrepresentations that may not
be made by an insurer, officer or agent thereof or an insurance broker
or solicitor EXCEPT - ANSWERS-the specific contract language
What does concealment, whether intentional or unintentional, entitle
the injured party to? - ANSWERS-The insurer may rescind the
contract on the basis of misrepresentation, concealment, or fraud by
the insured.
When does the guaranteed issue period for Medicare supplement end?
- ANSWERS-Sixty three days after the disenrollment of the previous
coverage
Which is considered unnecessary replacement for long-term coverage
unless as a mean to consolidate policies with one insurer? -
ANSWERS-Issuing 3 or more policies within a 12 month period
INSURANCE EXAM
Insurance is which types of contract? - ANSWERS-One agrees to
indemnify against loss, damage or liability arising from a contingent
or unknown risk.
Where shall an express warranty be made? - ANSWERS-in the policy
itself
The following are all penalties for unlawfully acting as an insurer
without a certificate of authority EXCEPT - ANSWERS-the
individual will be banned from practicing insurance for a period of 5
years.
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? - ANSWERS-The commissioner may take
possession of offices, books and property immediately without court
order.
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? - ANSWERS-Not more than $1000 fine
and/or 1 year imprisonment
,When should an insurer provide for the continuous operation of a unit
or devision to investigate possible fraudulent claims? - ANSWERS-If
admitted to do business in this state, except those otherwise
exempted.
After what time period is the policy considered to have been delivered
in an acceptable way if premiums have been paid? - ANSWERS-After
6 months if the premiums have been paid
All of the following define insolvency EXCEPT - ANSWERS-
revocation of certificate of authority by the commissioner.
It is unlawful to do any of the following EXCEPT - ANSWERS-make
or cause to made a knowingly false or fraudulent or material
representation for the purpose of encouraging an injured worker to
claim benefits.
Which statement accurately describes de-mutualization? -
ANSWERS-a mutual insurance company that decides to convert to a
stock company
ALL of the following are TRUE regarding the process to change the
California Code of Regulations EXCEPT - ANSWERS-the Office of
Administrative Law (OAL) may substitute its own judgement for that
of the rulemaking agency
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? - ANSWERS-Proof of claim
When should an agent provide an applicant the effective date of
coverage, if known, or the circumstances under which coverage will
be effective? - ANSWERS-at the time of application or receipt of
premium
Which are assets that are in excess of an insurer's liability for reported
losses, expenses, taxes, and reinsurance of outstanding risks? -
ANSWERS-Paid-in capital
All of the following are examples of misrepresentations that may not
be made by an insurer, officer or agent thereof or an insurance broker
or solicitor EXCEPT - ANSWERS-the specific contract language
What does concealment, whether intentional or unintentional, entitle
the injured party to? - ANSWERS-The insurer may rescind the
contract on the basis of misrepresentation, concealment, or fraud by
the insured.
When does the guaranteed issue period for Medicare supplement end?
- ANSWERS-Sixty three days after the disenrollment of the previous
coverage
Which is considered unnecessary replacement for long-term coverage
unless as a mean to consolidate policies with one insurer? -
ANSWERS-Issuing 3 or more policies within a 12 month period
