CALIFORNIA PSI LIFE INSURANCE EXAM QUESTIONS
AND ANSWERS VERIFIED 100% CORRECT
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.
How does an "admitted" person differ from an "non-admitted" person, as it
pertains to insurance? - ANSWER -An "admitted" person has the right to transact
insurance business within the state, while a "non admitted" person is not entitled to
this action.
All of the following conditions provide a basis for group life insurance coverage
EXCEPT - ANSWER -amounts of insurance may be selected as needed per
individuals personal need.
Which is an INACCURATE statement regarding underwriting based on genetic
testing? - ANSWER -The proposed insured must pay for the cost of the testing.
Which of the following can the insurer do if the insured intentionally conceal or
misrepresents a material fact concerning any coverage part? - ANSWER -Rescind
the contract
, Which of the following is TRUE of the conversion privileges for the insured in
group life insurance? - ANSWER -The option to name a new beneficiary can be
exercised by the owner.
What are the requirements for notices required by any provision of the insurance
code to a person unless expressly provided otherwise? - ANSWER -They should
be sent to a mailing notice at their residence or place of business.
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.
While both work with an insurer, how does an "insurance broker" differ from an
"insurance agent"? - ANSWER -The broker does not transact on behalf of an
insurer, while the agent does.
The insurance commissioner may deny an application for any license issued for
any of the following EXCEPT - ANSWER -the applicant is lacking in good
judgement.
Which is an INACCURATE statement regarding coverage for domestic
partnerships? - ANSWER -A policyholder may not require that a domestic
partnership be registered to qualify for coverage.
Which of the following is an insurer allowed to do in the event of a claim? -
ANSWER -request a medical examination for the purpose of determining liability
under a policy provision
When a replacement policy is being considered, which is required from an
insurer? - ANSWER -A list of existing policies replacement notice signed by the
applicant and the agent, and a notice sent to any existing insurers that replacement
is possible are all requirements.
All of the following are included as definitions of "transact" as applied to
insurance EXCEPT - ANSWER -underwriting
Which of the following provisions applied in the event of misstatement of age for
a covered employee of the group life policy? - ANSWER -There shall be an
equitable adjustment of premium or in the amount of insurance.
AND ANSWERS VERIFIED 100% CORRECT
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.
How does an "admitted" person differ from an "non-admitted" person, as it
pertains to insurance? - ANSWER -An "admitted" person has the right to transact
insurance business within the state, while a "non admitted" person is not entitled to
this action.
All of the following conditions provide a basis for group life insurance coverage
EXCEPT - ANSWER -amounts of insurance may be selected as needed per
individuals personal need.
Which is an INACCURATE statement regarding underwriting based on genetic
testing? - ANSWER -The proposed insured must pay for the cost of the testing.
Which of the following can the insurer do if the insured intentionally conceal or
misrepresents a material fact concerning any coverage part? - ANSWER -Rescind
the contract
, Which of the following is TRUE of the conversion privileges for the insured in
group life insurance? - ANSWER -The option to name a new beneficiary can be
exercised by the owner.
What are the requirements for notices required by any provision of the insurance
code to a person unless expressly provided otherwise? - ANSWER -They should
be sent to a mailing notice at their residence or place of business.
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.
While both work with an insurer, how does an "insurance broker" differ from an
"insurance agent"? - ANSWER -The broker does not transact on behalf of an
insurer, while the agent does.
The insurance commissioner may deny an application for any license issued for
any of the following EXCEPT - ANSWER -the applicant is lacking in good
judgement.
Which is an INACCURATE statement regarding coverage for domestic
partnerships? - ANSWER -A policyholder may not require that a domestic
partnership be registered to qualify for coverage.
Which of the following is an insurer allowed to do in the event of a claim? -
ANSWER -request a medical examination for the purpose of determining liability
under a policy provision
When a replacement policy is being considered, which is required from an
insurer? - ANSWER -A list of existing policies replacement notice signed by the
applicant and the agent, and a notice sent to any existing insurers that replacement
is possible are all requirements.
All of the following are included as definitions of "transact" as applied to
insurance EXCEPT - ANSWER -underwriting
Which of the following provisions applied in the event of misstatement of age for
a covered employee of the group life policy? - ANSWER -There shall be an
equitable adjustment of premium or in the amount of insurance.
