CA - Life, Accident, and Health or Sickness Practice
Exam 2, PSI: LIFE, ACCIDENT, AND HEALTH
PRACTICE Exam Questions and Answers (Latest
Update 2026) Verified Answers (100% Questions)
How does an "admitted" person differ from an "nonadmitted" person, as it pertains to insurance? -
CORRECT ANSWERS An "admitted" person has the right to transact insurance business within
the state, while a "nonadmitted" person is not entitled to this action.
Which of the following provisions of free insurance offered as an incentive to purchase or rent property
is TRUE? - CORRECT ANSWERS It requires a separate charge or fee.
Which statement accurately describes de-mutualization? - CORRECT ANSWERS a mutual
insurance company that decides to convert to a stock company
When should an insurer provide for the continuous operation of a unit or division to investigate possible
fraudulent claims? - CORRECT ANSWERS If admitted to do business in this state, except those
otherwise exempted.
A claimant can be any of the following EXCEPT - CORRECT ANSWERS a person who is
conducting an investigation of a claim on behalf of an insurer.
When can a person act as an agent of the insurer? - CORRECT ANSWERS when the insurer has
filed with the commissioner a notice of appointment
When working on behalf of an insurer for which they are not specifically appointed, what may a licensed
agent do? - CORRECT ANSWERS present a proposal for insurance and transmit an application
to the insurer
What does concealment, whether intentional or unintentional, entitle the injured party to? - CORRECT
ANSWERS The insurer may rescind the contract on the basis of misrepresentation,
concealment, or fraud by the insured.
All of the following define insolvency EXCEPT - CORRECT ANSWERS revocation of certificate of
authority by the commissioner.
Which of the following is TRUE regarding continuing education requirements of an agent or broker? -
CORRECT ANSWERS Any licensee shall satisfactorily complete 24 hours of instruction prior to
license renewal.
Which of the following actions is considered part of the insurance sales process? - CORRECT ANSWERS
Transaction of matters subsequent to execution of the contract and arising out of it.
All the following are requirements for an agent who advertises and transacts business on the Internet
EXCEPT - CORRECT ANSWERS his or her most recent license and appointment date.
, A person who does NOT hold a valid license may do which of the following - CORRECT ANSWERS
examine contracts of insurance.
As used in the insurance code, the word "shall" is mandatory and the word "may" is permissive EXCEPT -
CORRECT ANSWERS unless otherwise apparent from the context.
Which of the following is TRUE regarding the use of fictitious names for business? - CORRECT ANSWERS
The actual and fictitious business names must be registered with the commissioner.
It is unlawful to do any of the following EXCEPT - CORRECT 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.
An insurance agent is a person who transacts all of the following types of insurance EXCEPT - CORRECT
ANSWERS life insurance.
Which of the following is TRUE regarding nonadmitted insurers? - CORRECT ANSWERS Acting
as an agent for a nonadmitted insurer is considered a misdemeanor.
According to CIC Section 1711, an organization ceases to exist as an entity eligible to hold a license
EXCEPT - CORRECT ANSWERS upon the termination of all contracts.
What is a solicitor employed to do for a policy other than life? - CORRECT ANSWERS To aid a
property and casualty agent or broker in transacting insurance.
Which of the following is the method wherein a contract of insurance is finalized as relates to the sales
process? - CORRECT ANSWERS Execution of a contract of insurance
When may a surplus line broker solicit and place insurance for a home state insured with a nonadmitted
insurer? - CORRECT ANSWERS If the same insurance coverage cannot be procured from an
admitted insurer.
Which circumstances in a pretext interview determine if the questions are permissible? - CORRECT
ANSWERS When an insured is consulted by a person who hides his true identity on purpose
when fraud for a claim is suspected.
Which of the following is an insurer allowed to do in the event of a claim? - CORRECT ANSWERS
request a medical examination for the purpose of determining liability under a policy provision
Concealment, whether intentional or unintentional, entitles the injured party to? - CORRECT ANSWERS
Rescind insurance.
All of the following are to be specified in an insurance policy EXCEPT - CORRECT ANSWERS the
financial rating of the insured.
How is an insurance policy defined? - CORRECT ANSWERS The written instrument, in which a
contract of insurance is set forth.
Exam 2, PSI: LIFE, ACCIDENT, AND HEALTH
PRACTICE Exam Questions and Answers (Latest
Update 2026) Verified Answers (100% Questions)
How does an "admitted" person differ from an "nonadmitted" person, as it pertains to insurance? -
CORRECT ANSWERS An "admitted" person has the right to transact insurance business within
the state, while a "nonadmitted" person is not entitled to this action.
Which of the following provisions of free insurance offered as an incentive to purchase or rent property
is TRUE? - CORRECT ANSWERS It requires a separate charge or fee.
Which statement accurately describes de-mutualization? - CORRECT ANSWERS a mutual
insurance company that decides to convert to a stock company
When should an insurer provide for the continuous operation of a unit or division to investigate possible
fraudulent claims? - CORRECT ANSWERS If admitted to do business in this state, except those
otherwise exempted.
A claimant can be any of the following EXCEPT - CORRECT ANSWERS a person who is
conducting an investigation of a claim on behalf of an insurer.
When can a person act as an agent of the insurer? - CORRECT ANSWERS when the insurer has
filed with the commissioner a notice of appointment
When working on behalf of an insurer for which they are not specifically appointed, what may a licensed
agent do? - CORRECT ANSWERS present a proposal for insurance and transmit an application
to the insurer
What does concealment, whether intentional or unintentional, entitle the injured party to? - CORRECT
ANSWERS The insurer may rescind the contract on the basis of misrepresentation,
concealment, or fraud by the insured.
All of the following define insolvency EXCEPT - CORRECT ANSWERS revocation of certificate of
authority by the commissioner.
Which of the following is TRUE regarding continuing education requirements of an agent or broker? -
CORRECT ANSWERS Any licensee shall satisfactorily complete 24 hours of instruction prior to
license renewal.
Which of the following actions is considered part of the insurance sales process? - CORRECT ANSWERS
Transaction of matters subsequent to execution of the contract and arising out of it.
All the following are requirements for an agent who advertises and transacts business on the Internet
EXCEPT - CORRECT ANSWERS his or her most recent license and appointment date.
, A person who does NOT hold a valid license may do which of the following - CORRECT ANSWERS
examine contracts of insurance.
As used in the insurance code, the word "shall" is mandatory and the word "may" is permissive EXCEPT -
CORRECT ANSWERS unless otherwise apparent from the context.
Which of the following is TRUE regarding the use of fictitious names for business? - CORRECT ANSWERS
The actual and fictitious business names must be registered with the commissioner.
It is unlawful to do any of the following EXCEPT - CORRECT 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.
An insurance agent is a person who transacts all of the following types of insurance EXCEPT - CORRECT
ANSWERS life insurance.
Which of the following is TRUE regarding nonadmitted insurers? - CORRECT ANSWERS Acting
as an agent for a nonadmitted insurer is considered a misdemeanor.
According to CIC Section 1711, an organization ceases to exist as an entity eligible to hold a license
EXCEPT - CORRECT ANSWERS upon the termination of all contracts.
What is a solicitor employed to do for a policy other than life? - CORRECT ANSWERS To aid a
property and casualty agent or broker in transacting insurance.
Which of the following is the method wherein a contract of insurance is finalized as relates to the sales
process? - CORRECT ANSWERS Execution of a contract of insurance
When may a surplus line broker solicit and place insurance for a home state insured with a nonadmitted
insurer? - CORRECT ANSWERS If the same insurance coverage cannot be procured from an
admitted insurer.
Which circumstances in a pretext interview determine if the questions are permissible? - CORRECT
ANSWERS When an insured is consulted by a person who hides his true identity on purpose
when fraud for a claim is suspected.
Which of the following is an insurer allowed to do in the event of a claim? - CORRECT ANSWERS
request a medical examination for the purpose of determining liability under a policy provision
Concealment, whether intentional or unintentional, entitles the injured party to? - CORRECT ANSWERS
Rescind insurance.
All of the following are to be specified in an insurance policy EXCEPT - CORRECT ANSWERS the
financial rating of the insured.
How is an insurance policy defined? - CORRECT ANSWERS The written instrument, in which a
contract of insurance is set forth.
