PSI - LIFE, ACCIDENT, AND HEALTH - LONG

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.

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 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 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 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.

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.

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.

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.

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.

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.

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.

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.

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

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 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

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.

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 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.

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

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.

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.

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 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.

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

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.

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.

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.

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.

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.

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.