PSI - LIFE, ACCIDENT, AND HEALTH - FULL

What is the maximum fine for a person who transacts insurance without a valid license? 1. $10,000 and/or probation for 1 year. 2. $25,000 and/or imprisonment for a period not exceeding 6 months. 3. $50,000 and/or imprisonment for a period not exceeding one year. 4. $100,000 and/or imprisonment for a period not exceeding three years.

$50,000 and/or imprisonment for a period not exceeding one year.

How long does an employee in a group insurance policy have to exercise the conversion privilege after employment is terminated? 1. 0 days with no eligible coverage once the employment is terminated 2. 31 days to use the conversion privilege and begin an individual life insurance policy. 3. 90 days to convert to an individual policy equal to the coverage under the group policy 4. 6 months to exercise the conversion privilege after termination if the employee was ill-treated

31 days to use the conversion privilege and begin an individual life insurance policy.

Whether admitted or nonadmitted, how does a "foreign" insurer differ from an "alien" or "domestic" insurer? 1. A "foreign" insurer is organized under the laws of another country. 2. A "foreign" insurer is prohibited from transacting insurance with the State of California. 3. A "foreign" insurer is organized under the laws of another state within the United States. 4. A "foreign" insurer transacts business in multiple languages not spoken in the United States.

A "foreign" insurer is organized under the laws of another state within the United States.

When a replacement policy is being considered, what is required from an insurer? 1. A notarized statement acknowledging reasons for replacement and identification information, signed by the applicant and the agent are required. 2. A price comparison breaking down the cost of the new coverage and the coverage that it will replace, including annual dividend statements is required to avoid penalties. 3. The agent is required to send a replacement notice within 60 days of the application to the insurer for any existing coverage that may be replaced by the new policy. 4. 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.

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.

Which is an INACCURATE statement regarding coverage for domestic partnerships? 1. A group health policy shall provide equal coverage for registered domestic partners. 2. A policyholder may not require that a domestic partnership be registered to qualify for coverage. 3. A policy shall not cover a domestic partner if it is unequal to the coverage provided to the spouse of an employee, insured, or policyholder. 4. Equal coverage shall be offered to the registered domestic partner of an employee, insured, or policyholder in terms as those provided to a spouse.

A policyholder may not require that a domestic partnership be registered to qualify for coverage.

An "insurance agent" means a person authorized, by and on behalf of an insurer, to transact which of the following class of insurance? 1. Annuities. 2. Disability insurance. 3. Health insurance. 4. Life Policy.

Annuities.

Which of the following is TRUE regarding nonadmitted insurers? 1. A felony is committed by the agent in the state of a nonadmitted insurer. 2. Acting as an agent for a nonadmitted insurer is considered a misdemeanor. 3. The agent shall pay $1,000 in addition to any fees involving the commission of a felony. 4. Specific penalties shall be determined by the Insurance Commissioner on a case by case basis.

Acting as an agent for a nonadmitted insurer is considered a misdemeanor.

What happens under a misstatement of age clause on a disability policy? 1. The policy would be terminated and all premiums would be returned to the policy owner. 2. The policy would be terminated and all premiums would be retained by the insurance company. 3. All amounts payable under this policy shall be what the premium originally would have purchased and been paid at the correct age. 4. Prior to any benefits being payable, the insured shall rate and pay the difference in premiums based upon his correct age

All amounts payable under this policy shall be what the premium originally would have purchased and been paid at the correct age.

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? 1. A copy of the insurance policy. 2. An individual certificate of insurance. 3. A vestment schedule showing what the policy will be worth. 4. An individual packet including the application and the policy.

An individual certificate of insurance.

When may a representation be altered or withdrawn? 1. Before the insurance is effected. 2. After the insurance is effected. 3. At the time of contract renewal. 4. After a contract has been interpreted.

Before the insurance is effected.

How can a licensee surrender any license for cancellation? 1. By posting a written statement on their website. 2. By calling the Department of Insurance and advising them verbally. 3. By submitting written notice or by delivering the license to the commissioner. 4. By submitting written notice to all contracted insurers and existing policyholders.

By submitting written notice or by delivering the license to the commissioner.

Which coverage is a life insurance licensee NOT authorized to produce? 1. Coverage on human lives. 2. Coverage for sickness, bodily injury, or accidental death. 3. Coverage for major medical expenses. 4. 24-hour care coverage.

Coverage for major medical expenses.

Which is NOT a requirement of a Medicare Supplement provider? 1. Establishing auditable procedures for maintaining compliance. 2. Establishing marketing procedures to make sure excessive insurance is not sold or issued. 3. Displaying prominently on the first page of the policy the disclosure that the policy "will cover all of the medical expenses." 4. Inquiring and making every reasonable effort to discover if the prospective applicant already has health insurance, and the types and amounts of that insurance.

Displaying prominently on the first page of the policy the disclosure that the policy "will cover all of the medical expenses."

Which of the following provisions of free insurance offered as an incentive to purchase or rent property is TRUE? 1. It is permitted with no charge. 2. It requires a separate charge or fee. 3. If offered as a guarantee of the performance of goods, it is prohibited. 4. If issued by credit unions or with newspaper subscriptions, it is limited under Statute 777.2.

It requires a separate charge or fee.

Which is TRUE regarding a life and health agent who has not been specifically appointed by the insurer? 1. The insurer is obliged to accept the application for underwriting from the life agent. 2. If a policy is issued, the agent is required to forfeit any commission unless appointed. 3. The insurer is required to report the agent appointment within 21 days of the policy issue. 4. If a policy is issued, the insurer is considered to have authorized the agent to act on its behalf.

If a policy is issued, the insurer is considered to have authorized the agent to act on its behalf

When should an insurer provide for the continuous operation of a unit or division to investigate possible fraudulent claims? 1. At the time the potentially fraudulent claim occurs. 2. If admitted to do business in this state, except those otherwise exempted. 3. After the insurer has received notice from the state to set up such a unit. 4. If admitted to do business in any state, when the claim occurs in this state.

If admitted to do business in this state, except those otherwise exempted.

When may a surplus line broker solicit and place insurance for a home state insured with a nonadmitted insurer? 1. If the same insurance coverage cannot be procured from an admitted insurer. 2. If the nonadmitted insurer is a domestic rather than an alien or foreign company. 3. Only when the nonadmitted insurer signs an agreement to become an admitted insurer. 4. Only when the proposed insured petitions for the right to be offered the coverage by the broker.

If the same insurance coverage cannot be procured from an admitted insurer.

Which is an INACCURATE statement regarding standards to avoid unfair underwriting for applicants at risk for auto immune deficiency, human immunodeficiency virus, or AIDS related conditions? 1. Insurers must maintain strict confidentiality regarding personal information obtained as the results of any medical testing. 2. Insurers are permitted to schedule AIDS and HIV testing without the specific consent of the individual applying for insurance. 3. Insurers must establish performance standards to avoid making unfair distinctions between individuals in the same underwriting class. 4. Establish standards that allow for adequate assessment through underwriting to determine if a life or health policy can be issued to the applicant.

Insurers are permitted to schedule AIDS and HIV testing without the specific consent of the individual applying for insurance.

Which of the following BEST defines the general concept of the 24-hour care plan? 1. It integrates workers? compensation medical care with the care provided by group health insurance. 2. It provides immediate medical care from any source for injuries on which occur on the job. 3. It permits non job related injuries to be treated through the worker?s compensation program. 4. It pays any medical bill from a job related injury for services within the first 24 hours of the injury.

It integrates workers? compensation medical care with the care provided by group health insurance.

Which statement describes the intent of the California Financial Information Privacy Act? 1. It enables and authorizes the Gramm-Leach-Bliley Act into California legal system. 2. It permits civil lawsuits against financial institutions who violate the Gramm-Leach-Bliley Act. 3. It provides greater privacy protections than those provided in the federal Gramm-Leach-Bliley Act. 4. It permits greater flexibility to financial institutions than privacy protections enacted in Gramm-Leach-Bliley Act.

It provides greater privacy protections than those provided in the federal Gramm-Leach-Bliley Act

What type of licensee can receive a fee from any person or source other than an insurer? 1. Life and Disability Insurance Analyst 2. Life and Disability Insurance Agent 3. Life Insurance Broker 4. Insurance Solicitor

Life and Disability Insurance Analyst

Which form of negotiation is covered under the definition of "transact" as applied to insurance? 1. Negotiations on contract modifications. 2. Negotiations regarding an agent contract/ 3. Negotiations following execution. 4. Negotiations preliminary to execution.

Negotiations preliminary to execution.

Which are accepted practices for the sale and replacement of Medicare Supplement policies? 1. Using the terms "Medicare Supplement" , "Medigap" and "Medicare Wrap-Around" without limitation. 2. Cold lead advertising, which allows marketing without disclosing that contact will be made by an insurance agent or broker. 3. Offering a fair and accurate comparison of the product offered with any current insurance policies the prospective customer may have. 4. High pressure tactics, through the use of an explicit or implied threat designed to frighten or threaten the prospective client into taking action.

Offering a fair and accurate comparison of the product offered with any current insurance policies the prospective customer may have.

Insurance is which type of contract? 1. An individual undertakes to provide protection against a known risk. 2. A company seeks to protect against the loss of profits from competition risk. 3. One seeks to reduce the risk of loss of investment in a business venture with new partners. 4. One agrees to indemnify against loss, damage or liability arising from a contingent or unknown risk.

One agrees to indemnify against loss, damage or liability arising from a contingent or unknown risk.

Which is a requirement of an insurer who offers long-term care policies? 1. Receive a signed affidavit verifying the current health of each applicant. 2. Establish a verbal policy approved by the insurance commissioner showing compliance. 3. Provide the name, address and phone number for the local Health Insurance Counseling and Advocacy Program. 4. Display on page one of the policy or certificate the following statement "Notice to buyer, the policy will provide for all the costs associated with long-term care needs.

Provide the name, address and phone number for the local Health Insurance Counseling and Advocacy Program.

What makes a comprehensive long-term care policy unique from other long-term care policies? 1. Provides for both institutional and home care. 2. Provides for all the expenses incurred from long-term care. 3. Provides both life and long-term care for the insured individual. 4. Gives the insured the option of creating a paid up policy by paying in advance.

Provides for both institutional and home care.

Which of the following can the insurer do if the insured intentionally conceals or misrepresents a material fact concerning any coverage part? 1. Rescind the contract. 2. Charge a penalty fee. 3. Modify coverage. 4. Sue the insured.

Rescind the contract.

Concealment, whether intentional or unintentional, entitles the injured party to? 1. Modify insurance. 2. Rescind insurance. 3. Supplemental benefits. 4. Reduced cost insurance.

Rescind insurance.

Which is an INACCURATE statement on the purpose and intent of the Insurance Information and Privacy Protection Act? 1. The Act enables applicants and policyholders to obtain reasons for adverse underwriting decisions. 2. The Act permits disclosure of insurance underwriting information and claim history records. 3. The Act grants persons access to information collected in order to verify or dispute its accuracy. 4. The Act establishes standards for the collection, use and disclosure of information related to insurance.

The Act permits disclosure of insurance underwriting information and claim history records.

Who is the California Life and Health & Guarantee Association is regulated by? 1. The California Legislature. 2. The California Department of the Treasurer. 3. The California Insurance Commissioner 4. The Governor of California.

The California Insurance Commissioner

According to the Administrative Procedures Act, what is required to make changes to the California Insurance Code? 1. The proposal must first pass through the house and senate before being put to a vote by the Commission. 2. The Insurance Commissioner must originate any changes, and make most changes through executive order. 3. The Governor acknowledges the need for the change before any proposed changes are put to vote by the Commission. 4. The Department of Insurance is required to publish proposed changes at least 45 days prior to the hearing or decision to adopt the change.

The Department of Insurance is required to publish proposed changes at least 45 days prior to the hearing or decision to adopt the change

Which of the following is TRUE regarding the use of fictitious names for business? 1. Fictitious names do not need to be reported like actual personal or business names. 2. The actual and fictitious business names must be registered with the commissioner. 3. The licensee may register 3 or more fictitious names in addition to their real name the first year. 4. A licensee may continue to use for 10 days a fictitious name prohibited by the commissioner until notification.

The actual and fictitious business names must be registered with the commissioner

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? 1. The commissioner must make application to the Superior Court and obtain a court order. 2. The commissioner may take possession of offices, books and property immediately without court order. 3. The Superior Court shall authorize a receiver at the request of the Commissioner without delay. 4. The commissioner shall file a petition with the United States Secretary of the Treasury for appointment of a receiver.

The commissioner may take possession of offices, books and property immediately without court order.

Which of the following is TRUE regarding change of address for a licensee? 1. A licensee must notify the commissioner of an address change, but a license applicant does not. 2. The law only applies to the physical mailing address, for changes in email addresses are exempt. 3. The commissioner must be notified immediately of any change in the personal, business, or email address. 4. A licensee or applicant has 30 days to notify the commissioner of any change in email or physical address.

The commissioner must be notified immediately of any change in the personal, business, or email address.

Which is an ACCURATE statement regarding long-term care advertisements and the "cold lead device" disclosure? 1. An ad designed to promote leads does not have to disclose the fact that an agent will call. 2. The fact that a cold lead device was used must be immediately announced to the customer. 3. The ad designed to promote cold leads must be retained by the insurer for at least 365 days. 4. Any insurer providing long-term care coverage shall provide a copy of any advertisement for inspection by the commissioner at least 90 days prior to any planned implementation.

The fact that a cold lead device was used must be immediately announced to the customer.

When an insured under age 60 purchases a new policy, how much time do they have to cancel and receive a full refund of premiums? 1. The insured has 90 days to decide they want to cancel a new policy and receive a partial refund of premiums paid. 2. The insured has only 5 days and not more than 20 days to inform the insurer they want to cancel a new policy and receive a full premium refund. 3. The insured has 60 days to cancel, but the insurer is not required to refund the full premium amount paid for the policy. 4. The insured has a period of not less than 10, and not more than 30 days, during which they may cancel and receive a full refund for the premiums paid.

The insured has a period of not less than 10, and not more than 30 days, during which they may cancel and receive a full refund for the premiums paid.

Which is an INACCURATE statement regarding a life settlement contract? 1. The owner receives a guarantee of the future settlement value. 2. It includes a finance loan made for a policy on or before the issuance of the policy. 3. The loan proceeds are used to solely pay premiums for the policy and any expenses incurred. 4. The owner agrees to sell the policy or any portion of the death benefit following the policy issue.

The loan proceeds are used to solely pay premiums for the policy and any expenses incurred.

What happens if an owner requests an immediate investment of monies in a variable annuity policy be returned during the 30 day cancellation period? 1. The owner shall forfeit any money invested. 2. The owner shall receive the market value at the time of the cancellation. 3. The owner shall receive a refund of premium but nothing earned during cancellation period. 4. The owner shall receive a full refund of premium, plus the market value, minus any commission fees.

The owner shall receive the market value at the time of the cancellation.

Which is an INACCURATE statement regarding underwriting based on genetic testing? 1. The proposed insured must pay for the cost of the testing. 2. The proposed insured must provide informed consent prior to the testing. 3. The test results can be provided to the proposed insured, or to their physician to whom the individual should consult. 4. The purpose is to create standards classified by risks to avoid discrimination among proposed insureds with similar genetic markers.

The proposed insured must pay for the cost of the testing.

Which is an INACCURATE statement regarding inflation protection for long-term care insurance? 1. Increases are compounded annually at a rate not less than 5 percent. 2. Guarantees the insured individual the right to periodically increase benefit levels. 3. The protection covers a specified percentage of actual or reasonable charges, and includes a maximum specified indemnity amount. 4. Insurers shall offer to each policyholder or certificate holder the option to add an inflation protection feature with their policy at the time of purchase.

The protection covers a specified percentage of actual or reasonable charges, and includes a maximum specified indemnity amount.

Can any life insurer issue group life insurance with premium rates less than the usual rates for such insurance? 1. Yes, when the Department of Insurance has requested they do so. 2. Yes, if the insurer has filed an exemption form to do so. 3. Yes, they may do so on any group plan, with or without annuities. 4. No, there are no circumstances when this is allowed.

Yes, they may do so on any group plan, with or without annuities

Which of the following may be insured against? 1. Disability. 2. Accidental death. 3. Wagering losses. 4. Catastrophic losses.

Wagering losses.

Which circumstances in a pretext interview determine if the questions are permissible? 1. When an insured is questioned prior to the application to determine the best recommendations for coverage. 2. When an insured is consulted by a person who hides his true identity on purpose when fraud for a claim is suspected. 3. When questions are asked to help underwriting decide on coverage for the insured when health problems are suspected. 4. When questions are posed by a person who refuses to identify himself or his relation to the company prior to a policy being underwritten.

When an insured is consulted by a person who hides his true identity on purpose when fraud for a claim is suspected.

Are dependents eligible for any premium refunds or dividends paid under any policy of group disability insurance? 1. Yes, insured employees are generally eligible as well as their dependents. 2. Yes, dependents are eligible when the employee has filed a written statement affirming their status. 3. Yes, when the insurance company for the employee is domiciled in the United States. 4. No, as they are not the employee and are therefore not eligible.

Yes, insured employees are generally eligible as well as their dependents.

Which statement accurately describes de-mutualization? 1. a mutual insurance company that decides to convert to a stock company 2. a reinsurer which no longer feels the business relationship is mutually beneficial 3. two companies which reach a mutual decision that they will no longer transact business 4. an individual who decides its relationship with an insurer is no longer a mutually beneficial one

a mutual insurance company that decides to convert to a stock company

A claimant can be any of the following EXCEPT 1. any person who asserts a right of recovery under a surety bond. 2. a person who is conducting an investigation of a claim on behalf of an insurer. 3. any person authorized by operation of law to represent the claimant. 4. an attorney.

a person who is conducting an investigation of a claim on behalf of an insurer

After what time period is the policy considered to have been delivered in an acceptable way if premiums have been paid? 1. after 6 months if the premiums have been paid 2. after 1 year if the premiums have been paid by the insured 3. 30 days after the first premium has been received by the insurer 4. only if a written receipt is obtained at the time of delivery, regardless of paid premiums

after 6 months if the premiums have been paid

All of the following conditions provide a basis for group life insurance coverage EXCEPT 1. insurance may be issued with or with out medical examinations of each applicant. 2. for a group plan the coverage must be provided for not less than two employees. 3. coverage is offered to all employees if premiums are paid jointly by employer and employees. 4. amounts of insurance may be selected as needed per individuals personal need.

amounts of insurance may be selected as needed per individuals personal need.

When should an agent provide an applicant the effective date of coverage, if known, or the circumstances under which coverage will be effective? 1. when a proposal is presented 2. at the time underwriting has been completed 3. at the time of application or receipt of premium 4. when applicant has verbally committed to applying for coverage

at the time of application or receipt of premium

If fiduciary funds are received by any licensee, the funds shall be maintained in any of the following EXCEPT 1. bonds issued in all 50 states of the United States. 2. United States government bonds and treasury certificates. 3. certificates of deposit of banks or savings and loan associations licensed by any state. 4. repurchase agreements collateralized by securities issued by the United States government.

bonds issued in all 50 states of the United States.

All of the following may be eligible to qualify for enrollment in the Healthy Families Program EXCEPT 1. children up to the age of 19 years. 2. children whose permanent residence is in California. 3. children who are NOT eligible for no-cost Medi-Cal. 4. children who fail to meet citizenship or immigration rules.

children who fail to meet citizenship or immigration rules.

An agent or representative who issues long term care insurance must do all of the following EXCEPT 1. establish marketing procedures to ensure that excessive coverage is not issued or sold. 2. complete a total of 10 hours of continuing education if licensed before January 1st, 2002. 3. complete the training requirements prior to soliciting customers for the sale of long term care products. 4. establish accounting procedures within 1 year to verify compliance with the insurance statutes of California.

complete a total of 10 hours of continuing education if licensed before January 1st, 2002.

Which of the following types of coverage must have a proven insurable interest at the time of the application? 1. coverage for oneself 2. coverage for a spouse or domestic partner if the policy is less than $100,000 3. coverage for a minor child under age 18 or a corporate owned policy on an employee 4. coverage for any person upon whose life any estate or interest vested in him is dependent

coverage for a minor child under age 18 or a corporate owned policy on an employee

A policy with a life insurance benefit for a disabled employee includes an extension of benefits upon its discontinuance when all of the following are met EXCEPT 1. during a 30 day period in which to accept the terms of the new policy. 2. when such discontinuance does not affect the disability benefit within the first 10 days. 3. that any amounts of life insurance provided have no disability provision applied as described in the CIC. 4. the rights of conversion shall apply to the amount the individual is insured for at the termination of the policy.

during a 30 day period in which to accept the terms of the new policy.

In the event of receiving notice of a claim or other claim communication, all of the following timelines are accurate EXCEPT 1. every licensee or claims agent shall transmit notice of the claim to the insurer in no more than 5 calendar days. 2. every licensee shall immediately, but in no more than 15 calendar days, furnish them a complete response. 3. every license or claims agent shall immediately transmit notice of claim to insurer. 4. every insurer shall within15 calendar days acknowledge receipt and provide to the claimant the necessary forms.

every licensee or claims agent shall transmit notice of the claim to the insurer in no more than 5 calendar days.

A person who does NOT hold a valid license may do which of the following 1. effect contracts of insurance. 2. examine contracts of insurance. 3. negotiate contracts of insurance. 4. solicit contracts of insurance.

examine contracts of insurance.

Which of the following may insurers use in their underwriting? 1. ancestry 2. family medical history 3. genetic characteristics 4. national origin

family medical history

All of the following are requirements for an applicant to be licensed as a life & disability insurance analyst EXCEPT 1. having a thorough knowledge of life or disability insurance products. 2. having been employed by an insurance company. 3. being a fit and proper person to hold the license applied for. 4. being of good business reputation and of good general reputation.

having been employed by an insurance company.

When shall an individual certificate be deemed to be "individualized" within the meaning of the CIC? 1. only if it contains the full legal name of the person covered 2. if it contains either the name of the person covered or some other means of identifying to the individual covered that it is his individual certificate 3. if there is an attached statement from the insurance company stating that the certificate provides coverage to that individual 4. if it contains the name of the person covered along with at least two other types of identifying information

if it contains either the name of the person covered or some other means of identifying to the individual covered that it is his individual certificate

Where shall an express warranty be made? 1. in the policy itself 2. on a specimen copy in the contract 3. on an illustration provided to the policy owner 4. in a brochure of the policy that is described in detail

in the policy itself

The California Legislature declared all of the following when creating the Healthy Families Program EXCEPT 1. that most uninsured children come from low-income families. 2. lack of educational resources for children and their parents leads to increased medical expenses. 3. that lack of insurance coverage for children results in reduced access to medical services. 4. when a child is seriously ill or injured, the costs of needed medical care can force families into financial ruin.

lack of educational resources for children and their parents leads to increased medical expenses.

Losses arising from all of the following conditions may be excluded from group life policies EXCEPT 1. aviation. 2. acts of war. 3. military service. 4. natural disasters.

natural disasters.

It is unlawful to do any of the following EXCEPT 1. knowingly assist, abet, conspire with, or solicit a person in an unlawful act under this section of the insurance code. 2. make or cause to made a knowingly false or fraudulent or material representation for the purpose of obtaining or denying any compensation. 3. make or cause to made a knowingly false or fraudulent or material representation for the purpose of encouraging an injured worker to claim benefits. 4. present or cause to be presented a knowingly false or fraudulent written or oral material statement in support of, or in opposition to, a claim for compensation.

make or cause to made a knowingly false or fraudulent or material representation for the purpose of encouraging an injured worker to claim benefits.

"Notice of legal action" can mean all of the following EXCEPT 1. notice of action commenced against the insurer with respect to a claim. 2. notice of action against the insured received by the insurer. 3. notice of action against the principal under a bond. 4. notice of action against the agent.

notice of action against the agent.

Which are assets that are in excess of an insurer's liability for reported losses, expenses, taxes, and reinsurance of outstanding risks? 1. capital stock 2. capital assets 3. paid-in capital 4. excess investment

paid-in capital

How does insurance written under a franchise agreement or on a wholesale basis differ from standard group insurance? 1. The coverage for group insurance is broadened under a franchise agreement and more extensive. 2. The eligibility standards are more relaxed with less underwriting when group is written under a franchise agreement. 3. Premiums for the coverage under a franchise agreement may be written for more than the usual rates for such insurance. 4. Coverage offered through a franchise agreement or on a wholesale basis has a longer contestability period.

remiums for the coverage under a franchise agreement may be written for more than the usual rates for such insurance.

All of the following define insolvency EXCEPT 1. revocation of certificate of authority by the commissioner. 2. inability of the insurer to fully reinsure all outstanding risks. 3. impairment of minimum paid-in capital required in the aggregate. 4. inability of the insurer to meet its financial obligations when they are due.

revocation of certificate of authority by the commissioner.

Life and Disability Insurance Analysts must provide an agreement with a statement that includes all of the following EXCEPT 1. that information and services that can be obtained directly from the insurance company without cost. 2. that the services to be performed for which a fee is to be charged, and that fee. 3. that fees can be received for servicing a policy on which they were the selling agent. 4. that if they are also licensed as an agent, that they receive commissions from the sale of products.

that fees can be received for servicing a policy on which they were the selling agent.

All of the following are TRUE about the rules regarding the sale of life insurance and annuities to seniors age 65 or older EXCEPT 1. the senior is entitled to have others present during any presentation by an agent, broker or insurer. 2. all insurance brokers, agents, or insurers owe a prospective insured at 65 years or older a duty of honesty, good faith, and fair dealing. 3. 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's home. 4. advance notice must be provided to the senior disclosing and identifying details of the visit and the agent or broker prior to the scheduled meeting.

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's home.

The Insurance Commissioner may deny an application for any license issued for any of the following EXCEPT 1. the applicant has been convicted of a felony. 2. the applicant is not of good business reputation. 3. the applicant is lacking in good judgment. 4. the granting of the license would be against the public interest.

the applicant is lacking in good judgment.

A policy shall specify all of the following EXCEPT 1. the property or life insured. 2. the parties between whom the contract is made. 3. the period during which the insurance is to continue. 4. the method in which the coverage amount was calculated.

the method in which the coverage amount was calculated.

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? 1. to ensure the premiums are comparable to those paid by individuals without those conditions 2. to allow underwriting to administer the tests to determine if the proposed insured has a condition without the consent of the individual 3. to avoid discrimination between individuals in the same rating class who have been diagnosed with the condition of AIDS, ARC or HIV 4. to allow the insurers to provide state of the art treatment for proposed insured individuals who have tested positive for AIDS, ARC or HIV

to avoid discrimination between individuals in the same rating class who have been diagnosed with the condition of AIDS, ARC or HIV

All of the following are included as definitions of "transact" as applied to insurance EXCEPT 1. solicitation. 2. underwriting. 3. negotiations preliminary to execution. 4. execution of a contract of insurance.

underwriting.

When does a license become inactive for a broker? 1. upon the termination of his or her employment 2. upon the termination of all appointments, or all endorsements 3. upon the 365th calendar day that a policy has not been written 4. upon the termination of all existing policies for which he or she is the writing broker

upon the termination of all appointments, or all endorsements

When is a person acting as a licensee allowed to act as an agent of the insurer? 1. when the agent has completed the licensing paperwork and submitted it to the insurer 2. when the insurer has filed with the commissioner a notice of appointment 3. when the insurer has provided the agent with applications 4. when the agent has received oral approval from the insurer to transact business

when the insurer has filed with the commissioner a notice of appointment