PSI Practice Test
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
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.
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.
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 continuing education requirements of an agent or broker? 1. Any licensee shall satisfactorily complete 24 hours of instruction prior to license renewal. 2. Any licensee in good standing for 10 years may apply for exemption to the continuing education requirement if reputation has been proven. 3. An agent or broker licensed in life and health requires more continuing education hours than an agent or broker licensed in property and casualty. 4. A licensee who is 65 years or older shall be exempt from continuing education hours if reputation of agent or broker is in good standing for 25 years.
Any licensee shall satisfactorily complete 24 hours of instruction prior to license renewal.
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.
How is the insurance commissioner chosen? 1. Elected by the people. 2. Appointed by the Governor 3. Selected by a vote in the House and the Senate. 4. Randomly selected from a list of qualified candidates.
Elected by the people.
Which of the following is an INACCURATE statement regarding replacement for long-term care coverage? 1. The policy must materially improve the position of the insured. 2. The sales commission is limited to the percentage of sale normally paid for renewal of long-term care policies. 3. Group long-term care policies have the same rules regarding replacement as individual long-term care policies. 4. Replacement commission is based on the difference between the annual premium of the replacement and the original policy.
Group long-term care policies have the same rules regarding replacement as individual long-term care policies.
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 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 is considered unnecessary replacement for long-term coverage unless as a means to consolidate policies with one insurer? 1. Issuing 3 or more policies within a 12 month period. 2. Issuing a policy for more than twice the current income of the insured. 3. Issuing a policy that adequately meets the long term needs of the insured. 4. Replacing one policy with another at a substantially better premium pric
Issuing 3 or more policies within a 12 month period.
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
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
As long as employment continues, which is the ONLY reason the validity of a group life insurance policy can be contested? 1. Non-payment of premiums after the policy has been in force for two years. 2. A disability claim after the policy has been in force for more than two years. 3. Changes in union regulations after the policy has been in force for three years. 4. Omitting crucial details on the application after the policy has been in force for two years.
Non-payment of premiums after the policy has been in force for two years.
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 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
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.
Premiums for the coverage under a franchise agreement may be written for more than the usual rates for such insurance.
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
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
Which is an ACCURATE statement regarding dependent coverage under a group insurance policy? 1. The coverage lasts from birth until age 18. 2. The coverage must not exceed more than 50 percent of the coverage for the insured employee. 3. The coverage must not exceed more than 100 percent of the coverage for the insured employee. 4. The coverage is not intended to cover preexisting medical conditions for the proposed dependent.
The coverage must not exceed more than 100 percent of the coverage for the insured employee.
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.
Which of the following is TRUE of the conversion privileges for the insured in group life insurance? 1. The coverage amount without proof of insurability can be changed. 2. The option to name a new beneficiary can be exercised by the owner. 3. The owner can change the ownership of the policy but not the name of a beneficiary. 4. The policy can be transferred into an endowment or liquidated for its proceeds by the owner.
The option to name a new beneficiary can be exercised by the owner.
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 of the following is TRUE regarding advertisements or printed matter used by an agent or broker? 1. A life agent or broker has a different set of requirements than a casualty agent or broker. 2. The agent has three clear options for listing his relationship to the insurance agency or brokerage. 3. Freedom of speech usually allows advertisements that may mislead the public by creative expression. 4. The printed material must accurately show the relationship between the agent or broker and the agency.
The printed material must accurately show the relationship between the agent or broker and the agency.
Materiality to be solely determined by which of the following? 1. The probability that a certain occurrence of events will result in a claim. 2. The importance of the facts to the insurer and insured in making an underwriting decision. 3. The probable and reasonable influence of the facts upon the party to whom the communication is due. 4. The certainty that material provided to the insurer is truthful in all manners regardless of any mitigating circumstances.
The probable and reasonable influence of the facts upon the party to whom the communication is due.
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 of the following actions is considered part of the insurance sales process? 1. Rescission of the contract. 2. Transaction of unrelated matters that are made by the same parties. 3. Transaction of matters subsequent to execution of the contract and arising out of it. 4. Termination of future sales of the contract.
Transaction of matters subsequent to execution of the contract and arising out of it.
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.
In which situation is a person or other entity that provides coverage for medical expenses NOT subject to the jurisdiction of the insurance department? 1. When coverage is only offered to members of associations, unions and similar groups. 2. When the amount of coverage is limited to under $500,000. 3. When they have received an exemption from the insurance commissioner. 4. When they are subject to the jurisdiction of another agency of this or another state or the federal government.
When they are subject to the jurisdiction of another agency of this or another state or the federal government.
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.
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 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
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
Person" means all of the following EXCEPT 1. an association. 2. a corporation. 3. a business trust. 4. an organizational trust.
an organizational trust.
All of the following are permitted to have blanket insurance policies with specific restrictions EXCEPT 1. any union with dues-paying members. 2. a volunteer or governmental fire department. 3. a newspaper. 4. an institution of learning.
any union with dues-paying members.
When may a licensee surrender for cancellation any license under which they are permitted to act? 1. upon renewal of the license 2. within 60 days of renewal of their license 3. at any time 4. when they no longer have any clients with policies in force
at any time
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.
When is it allowable for a written application for any disability policy to be altered? 1. by the insurer, for administrative purposes only, when it is clear that the applicant has not made the insertions 2. by the agent who notices an error that is in disagreement with written information on file for that applicant 3. by an agent who verbally notifies the insured, for commission adjustments, of the reasons for the suggested alterations 4. by the insurer, to record such changes as to modify the application to meet all requirements of the California Insurance Code
by the insurer, for administrative purposes only, when it is clear that the applicant has not made the insertions
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
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.
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.
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 TRUE for commissions paid to an agent for the sale of a Medicare supplement policy EXCEPT 1. gifts, bonuses, prizes, awards or finder's fees given for sales or renewals are not considered compensation. 2. commissions paid for replacing policies shall not exceed the commission paid for renewing policies. 3. first year commissions must not exceed 200 percent of commissions paid for renewing policies. 4. renewal year commissions must be the same as second year and must be for a time period of no fewer than five years.
gifts, bonuses, prizes, awards or finder's fees given for sales or renewals are not considered compensation.
All the following are requirements for an agent who advertises and transacts business on the Internet EXCEPT 1. his or her license number. 2. his or her state of business and principle residence. 3. his or her most recent license and appointment date. 4. his or her actual name and any fictitious name approved by the commissioner.
his or her most recent license and appointment date
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.
Under which situation would an individual enrolled in Medicare Part B be INELIGIBLE for open enrollment? 1. receipt of a notice of termination of an employee sponsored plan 2. receipt of a notice of loss of eligibility due to divorce or death of spouse 3. notice of end stage renal desease from the primary care physician 4. loss of benefits for a military retiree due to the closing of a military base
notice of end stage renal desease from the primary care physician
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
When working on behalf of an insurer for which they are not specifically appointed, what may a licensed agent do? 1. expect an insurer to approve a proposal for a life insurance policy 2. accept payments for a policy in the form of cash, check, or money order 3. present a proposal for insurance and transmit an application to the insurer 4. transmit an application for an insurer who requested its agents to be exclusive.
present a proposal for insurance and transmit an application to the insurer
Which of the following terms refers to any evidence or documentation in the possession of the insurer that provides any evidence of a claim and that reasonably supports the magnitude or the amount of the claimant loss? 1. proof of loss 2. proof of claim 3. notice of claim 4. evidentiary proof
proof of claim
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.
Which group of people is offered additional protection by the Unfair Practices Act that regulates trade practices in the business of insurance? 1. victims of domestic abuse 2. victims of natural disasters 3. veterans injured overseas 4. survivors of the Holocaust
survivors of the Holocaust
ALL of the following are TRUE regarding the process to change the California Code of Regulations EXCEPT 1. the Office of Administrative Law (OAL) may substitute its own judgment for that of the rulemaking agency. 2. the Administrative Procedure Act requires a minimum of 45 days for comments regarding the proposed changes. 3. the Agency may decide to change its initial proposal in response to public comments or on its own initiative after the initial public comment period. 4. the Emergency Rulemaking Process and the Regular Rulemaking Process are separate requiring different standards and procedures for proposed changes.
the Office of Administrative Law (OAL) may substitute its own judgment for that of the rulemaking agency.
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.
All of the following are to be specified in an insurance policy EXCEPT 1. the financial rating of the insured. 2. a statement of the expected premium. 3. the parties between whom the contract is made. 4. the period during which the insurance is to continue.
the financial rating of the insured.
A permitted form of group disability insurance that conforms to the CIC meets all of the following conditions EXCEPT 1. the group numbers not less than 5 new entrants yearly. 2. the amounts insured on any one debtor do not exceed those permitted by the CIC. 3. covering debtors who are or become obligated to repay an indebtedness to one creditor. 4. the policy is issued upon application of and made payable to the creditor or his successor.
the group numbers not less than 5 new entrants yearly.
The following are all penalties for unlawfully acting as an insurer without a certificate of authority EXCEPT 1. the individual will be fined with a charge for a misdemeanor. 2. the individual may be charged a fine not to exceed $50,000. 3. the individual will be banned from practicing insurance for a period of 5 years. 4. the individual may be sentenced to county jail for a period not to exceed one year.
the individual will be banned from practicing insurance for a period of 5 years.
All of the following are examples of misrepresentations that may not be made by an insurer, officer or agent thereof or an insurance broker or solicitor EXCEPT 1. the terms of a policy issued. 2. the future dividends payable. 3. the specific contract language. 4. the benefits or privileges promised.
the specific contract language.
Which of the following is a party to a contract of insurance bound to communicate EXCEPT 1. those which the other knows. 2. those which the other waives communication. 3. those which the other would know by retaining a consultant with specialized knowledge in insurance matters. 4. those which, in the exercise of ordinary care, the other ought to know, and of which the other party has no reason to suppose him ignorant.
those which the other would know by retaining a consultant with specialized knowledge in insurance matters.
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
As used in the insurance code, the word "shall" is mandatory and the word "may" is permissive EXCEPT 1. when the contract is not accepted by the commissioner. 2. with the written approval of the commissioner. 3. unless otherwise apparent from the context. 4. unless otherwise specified in a contract.
unless otherwise apparent from the context.
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 representation false? 1. when the statement is made under duress 2. when new information is provided to the insurer 3. when the facts are modified by the applicant or insured 4. when the facts fail to correspond with its assertions or stipulations
when the facts fail to correspond with its assertions or stipulations
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
