CALIFORNIA PSI - LIFE INSURANCE EXAM TEST PRACTICE QUESTIONS WITH WELL
DETAILED ANSWERS- GRADED A+
When is a representation false?
when the facts fail to correspond with its assertions or stipulations
Which of the following is TRUE regarding the use of fictitious names for business?
The actual and fictitious business names must be registered with the commissioner
Which is an ACCURATE statement regarding dependent coverage under a group insurance
policy?
The coverage must not exceed more than 100 percent of the coverage for the insured
employee
According to CIC Section 1711, an organization ceases to exist as an entity eligible to hold
a license EXCEPT
upon the termination of all contracts
As long as employment continues, which is the ONLY reason the validity of a group life
insurance policy can be contested?
Non-payment of premiums after the policy has bee in force for two years.
,All of the following are TRUE about the rules regarding the sale of life insurance and
annuities to seniors age 65 or older EXCEPT
The agent, broker, or insurer is required to show a copy of their insurance license with
name, address, and phone number when conducting business in the senior home
What is a solicitor employed to do for a policy other than life?
To aid a property and casualty agent or broker in transacting insurance
All of the following are examples of representation except
It may be altered after the insurance is effected
Except as provided by sections 10203.5 and 10203.8 in the CIC, the insurer shall provide
which document to be delivered by the employer to the employee?
An individual certification of insurance
What is the purpose of creating minimum underwriting standards for those testing positive
for Acquired Immune Deficiency Syndrome, Human Immunodeficiency Virus or Aids
Related Complex?
To avoid discrimination between individuals in the same rating class who have been
diagnosed with the conditions of AIDS, ARC or HIV
Which of the following is TRUE regarding continuing eduction requirements of an agent or
broker?
, Any licensee shall satisfactorily complete 24 hours of instruction prior to license renewal.
Which of the following provisions of free insurance offered as incentive to purchase or rent
property is TRUE?
It requires a separate charge or fee.
Which is the maximum fine for a person who transacts insurance without a valid license?
$50,000 and/or imprisonment for a period not exceeding one year.
Which of the following is TRUE regarding non-admitted insurers?
Acting as an agent for a nonadmitted insurer is considered a misdemeanor.
A policy shall specify all of the following EXCEPT
The method in which the coverage amount was calculated
How long does an employee in a group insurance policy have to exercise the conversion
privilege after employment is terminated?
31 days to use the conversion privilege and begin an individual life insurance policy
Which group of people is offered additional protection by the Unfair Practices Act that
regulates trade practices in the business of insurance?
DETAILED ANSWERS- GRADED A+
When is a representation false?
when the facts fail to correspond with its assertions or stipulations
Which of the following is TRUE regarding the use of fictitious names for business?
The actual and fictitious business names must be registered with the commissioner
Which is an ACCURATE statement regarding dependent coverage under a group insurance
policy?
The coverage must not exceed more than 100 percent of the coverage for the insured
employee
According to CIC Section 1711, an organization ceases to exist as an entity eligible to hold
a license EXCEPT
upon the termination of all contracts
As long as employment continues, which is the ONLY reason the validity of a group life
insurance policy can be contested?
Non-payment of premiums after the policy has bee in force for two years.
,All of the following are TRUE about the rules regarding the sale of life insurance and
annuities to seniors age 65 or older EXCEPT
The agent, broker, or insurer is required to show a copy of their insurance license with
name, address, and phone number when conducting business in the senior home
What is a solicitor employed to do for a policy other than life?
To aid a property and casualty agent or broker in transacting insurance
All of the following are examples of representation except
It may be altered after the insurance is effected
Except as provided by sections 10203.5 and 10203.8 in the CIC, the insurer shall provide
which document to be delivered by the employer to the employee?
An individual certification of insurance
What is the purpose of creating minimum underwriting standards for those testing positive
for Acquired Immune Deficiency Syndrome, Human Immunodeficiency Virus or Aids
Related Complex?
To avoid discrimination between individuals in the same rating class who have been
diagnosed with the conditions of AIDS, ARC or HIV
Which of the following is TRUE regarding continuing eduction requirements of an agent or
broker?
, Any licensee shall satisfactorily complete 24 hours of instruction prior to license renewal.
Which of the following provisions of free insurance offered as incentive to purchase or rent
property is TRUE?
It requires a separate charge or fee.
Which is the maximum fine for a person who transacts insurance without a valid license?
$50,000 and/or imprisonment for a period not exceeding one year.
Which of the following is TRUE regarding non-admitted insurers?
Acting as an agent for a nonadmitted insurer is considered a misdemeanor.
A policy shall specify all of the following EXCEPT
The method in which the coverage amount was calculated
How long does an employee in a group insurance policy have to exercise the conversion
privilege after employment is terminated?
31 days to use the conversion privilege and begin an individual life insurance policy
Which group of people is offered additional protection by the Unfair Practices Act that
regulates trade practices in the business of insurance?
