PSI Life, Accident, Health Practice Exam Questions & Answers-Which is an ACCURATE statement regarding benefits of Medicare supplement and Medicare select p... [Show More] lans?
1
The insurer is able to cancel, or deny renewal of an existing policy, based solely on the health of the insured.
2
There is no restriction for benefits after the coverage has been in effect for six months when involving a preexisting condition.
3
The coverage for a loss from an illness or disease is treated differently than for a loss resulting from an injury due to an accident.
4
The coverage for a spouse cannot be terminated for any reason, including for nonpayment of premiums. - 2
There is no restriction for benefits after the coverage has been in effect for six months when involving a preexisting condition.
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. - 1
Elected by the people.
An insurance agent is a person who transacts all of the following types of insurance EXCEPT:
1
annuities.
2
homeowners.
3
auto insurance.
4
life insurance. - 4
life insurance.
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. - 2
lack of educational resources for children and their parents leads to increased 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. - 1
It integrates workers compensation medical care with the care provided by group health insurance.
How does an "admitted" person differ from an "nonadmitted" person, as it pertains to insurance?
1
An "admitted" person has admitted to a crime or fraud, while a "nonadmitted" person has not.
2
An "admitted" person has been granted admission to an insurance association, while a "nonadmitted" person has not been accepted.
3
An "admitted" person has been admitted to an accreditation program, while a "nonadmitted" person has yet to earn the credits.
4
An "admitted" person has the right to transact insurance business within the state, while a "nonadmitted" person is not entitled to this action. - 4
An "admitted" person has the right to transact insurance business within the state, while a "nonadmitted" person is not entitled to this action.
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 - 3
at any time
When does a disability policy become incontestable as to the statements contained in the application?
1
After this policy been in force for a period of one year during the lifetime of the insured.
2
After this policy been in force for a period of two years during the lifetime of the insured.
3
When the company has confirmed all of the statements and issued a binding contract.
4
Two years after the date of the application when a conditional receipt has been issued. - 2
After this policy been in force for a period of two years during the lifetime of the insured.
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. - 3
It provides greater privacy protections than those provided in the federal Gramm-Leach-Bliley Act.
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. - 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.
All of the following are a duty of an insurer in regards to claims on file and record documentation EXCEPT
1
maintaining claim data so that an insurer shall be able to provide the claim number, line of coverage, and other pertinent data.
2
recording the date the licensee received, date(s) the licensee processed and date the licensee transmitted or mailed every material and relevant document in the file.
3
maintaining any sales material, which had a material impact on the claims process.
4
maintaining claim files that are accessible, legible, and claim of duplication. - 3
maintaining any sales material, which had a material impact on the claims process.
"Person" means all of the following EXCEPT
1
an association.
2
a corporation.
3
a business trust.
4
an organizational trust. - 4
an organizational trust.
Which of the following may be insured against?
1
Disability.
2
Accidental death.
3
Wagering losses.
4
Catastrophic losses. - 3
Wagering losses.
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 - 1
by the insurer, for administrative purposes only, when it is clear that the applicant has not made the insertions
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. - 3
The coverage must not exceed more than 100 percent of the coverage for the insured employee.
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.
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. - 3
By submitting written notice or by delivering the license to the commissioner.
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. - 4
Negotiations preliminary to execution. [Show Less]
