PSI LIFE INSURANCE EXAM LATEST REAL EXAM 100+
QUESTIONS AND CORRECT ANSWERS|AGRADE
When is a representation false? - ANSWER: 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? -
ANSWER: 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? - ANSWER: 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 - ANSWER: 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? - ANSWER: 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 - ANSWER: 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? - ANSWER: To aid a
property and casualty agent or broker in transacting insurance
All of the following are examples of representation except - ANSWER: 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? -
ANSWER: 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? - ANSWER: 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? - ANSWER: 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? - ANSWER: It requires a separate charge or fee.
Which is the maximum fine for a person who transacts insurance without a valid
license? - ANSWER: $50,000 and/or imprisonment for a period not exceeding one
year.
Which of the following is TRUE regarding non-admitted insurers? - ANSWER: Acting
as an agent for a nonadmitted insurer is considered a misdemeanor.
A policy shall specify all of the following EXCEPT - ANSWER: 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? - ANSWER: 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? - ANSWER: Survivors of
the Holocaust
Which of the following is TRUE regarding advertisements or printed matter used by
an agent or broker? - ANSWER: The printer material must accurately show the
relationship between the agent or broker and the agency.
Which circumstances in a pretext interview determine if the questions are
permissible? - ANSWER: When a insured is consulted by a person who hides his true
identity on purpose when fraud for a claim is suspected.
An "insurance agent" means a person authorized, by and on behalf of an insurer, to
transact which of the following class of insurance? - ANSWER: Annuities
Which form of negotiation is covered under the definition of "transact" as applied to
insurance? - ANSWER: Negotiations preliminary to execution
All of the following are to be specified in an insurance policy EXCEPT - ANSWER: The
financial rating of the insured.
How can a licensee surrender any license for cancellation? - ANSWER: By submitted
written notice or by delivering the license to the commissioner
How is an insurance policy defined? - ANSWER: The written instrument, in which a
contract of insurance is set forth
When may a surplus line broker solicit and place insurance for a home state insured
with a nonadmitted insurer? - ANSWER: If the same insurance coverage cannot be
produced from an admitted insurer.
QUESTIONS AND CORRECT ANSWERS|AGRADE
When is a representation false? - ANSWER: 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? -
ANSWER: 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? - ANSWER: 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 - ANSWER: 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? - ANSWER: 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 - ANSWER: 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? - ANSWER: To aid a
property and casualty agent or broker in transacting insurance
All of the following are examples of representation except - ANSWER: 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? -
ANSWER: 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? - ANSWER: 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? - ANSWER: 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? - ANSWER: It requires a separate charge or fee.
Which is the maximum fine for a person who transacts insurance without a valid
license? - ANSWER: $50,000 and/or imprisonment for a period not exceeding one
year.
Which of the following is TRUE regarding non-admitted insurers? - ANSWER: Acting
as an agent for a nonadmitted insurer is considered a misdemeanor.
A policy shall specify all of the following EXCEPT - ANSWER: 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? - ANSWER: 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? - ANSWER: Survivors of
the Holocaust
Which of the following is TRUE regarding advertisements or printed matter used by
an agent or broker? - ANSWER: The printer material must accurately show the
relationship between the agent or broker and the agency.
Which circumstances in a pretext interview determine if the questions are
permissible? - ANSWER: When a insured is consulted by a person who hides his true
identity on purpose when fraud for a claim is suspected.
An "insurance agent" means a person authorized, by and on behalf of an insurer, to
transact which of the following class of insurance? - ANSWER: Annuities
Which form of negotiation is covered under the definition of "transact" as applied to
insurance? - ANSWER: Negotiations preliminary to execution
All of the following are to be specified in an insurance policy EXCEPT - ANSWER: The
financial rating of the insured.
How can a licensee surrender any license for cancellation? - ANSWER: By submitted
written notice or by delivering the license to the commissioner
How is an insurance policy defined? - ANSWER: The written instrument, in which a
contract of insurance is set forth
When may a surplus line broker solicit and place insurance for a home state insured
with a nonadmitted insurer? - ANSWER: If the same insurance coverage cannot be
produced from an admitted insurer.
