Which is TRUE regarding a life and health agent who has not been specifically appointed by the insurer?
If a policy is issued, the insurer is considered
... [Show More] to have authorized the agent to act on its behalf.
What are the requirements for notices required by any provision of the insurance code to a person unless expressly provided otherwise?
They should be sent to a mailing notice at their residence or place of business.
Which of the following can the insurer do if the insured intentionally conceals or misrepresents a material fact concerning any coverage part?
Rescind the contract.
Which is an INACCURATE statement regarding a life settlement contract?
The loan proceeds are used to solely pay premiums for the policy and any expenses incurred.
All of the following are TRUE regarding regulation and use of an agency name EXCEPT
a name would not be denied on the basis of being too similar to other company names.
Which of the following is TRUE regarding nonadmitted insurers?
Acting as an agent for a nonadmitted insurer is considered a misdemeanor.
When working on behalf of an insurer for which they are not specifically appointed, what may a licensed agent do?
present a proposal for insurance and transmit an application to the insurer
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?
The commissioner may take possession of offices, books and property immediately without court order.
When can a person act as an agent of the insurer?
when the insurer has filed with the commissioner a notice of appointment
The following are all penalties for unlawfully acting as an insurer without a certificate of authority EXCEPT
the individual will be banned from practicing insurance for a period of 5 years.
Whether admitted or nonadmitted, how does a "foreign" insurer differ from an "alien" or "domestic" insurer?
A "foreign" insurer is organized under the laws of another state within the United States.
All of the following are examples of representation EXCEPT
it may be altered after the insurance is effected.
A policy shall specify all of the following EXCEPT
the method in which the coverage amount was calculated.
Which of the following actions is considered part of the insurance sales process?
Transaction of matters subsequent to execution of the contract and arising out of it.
According to the Administrative Procedures Act, what is required to make changes to the California Insurance Code?
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?
The actual and fictitious business names must be registered with the commissioner.
"Person" means all of the following EXCEPT
an organizational trust.
Which of the following is a party to a contract of insurance bound to communicate EXCEPT
those which the other would know by retaining a consultant with specialized knowledge in insurance matters.
Which are assets that are in excess of an insurer's liability for reported losses, expenses, taxes, and reinsurance of outstanding risks?
paid-in capital
Which circumstances in a pretext interview determine if the questions are permissible?
When an insured is consulted by a person who hides his true identity on purpose when fraud for a claim is suspected.
An agent or representative who issues long term care insurance must do all of the following EXCEPT
complete a total of 10 hours of continuing education if licensed before January 1st, 2002.
Which of the following provisions of free insurance offered as an incentive to purchase or rent property is TRUE?
It requires a separate charge or fee
If fiduciary funds are received by any licensee, the funds shall be maintained in any of the following EXCEPT
bonds issued in all 50 states of the United States.
What is the punishment for a person who refuses to deliver books, records, or assets to the commissioner when subject to a seizure order in an insolvency proceeding?
Not more than $1000 fine and/or 1 year imprisonment
Which form of negotiation is covered under the definition of "transact" as applied to insurance?
Negotiations preliminary to execution
How can a licensee surrender any license for cancellation?
By submitting written notice or by delivering the license to the commissioner.
Where shall an express warranty be made?
in the policy itself
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?
proof of claim
What is the maximum fine for a person who transacts insurance without a valid license?
$50,000 and/or imprisonment for a period not exceeding one year.
In the event of receiving notice of a claim or other claim communication, all of the following timelines are accurate EXCEPT
every licensee or claims agent shall transmit notice of the claim to the insurer in no more than 5 calendar days.
When may a surplus line broker solicit and place insurance for a home state insured with a nonadmitted insurer?
If the same insurance coverage cannot be procured from an admitted insurer.
Which is considered nonpublic personal information as defined by the California Financial Code?
tax return
When is a representation false?
when the facts fail to correspond with its assertions or stipulations
Which of the following is the method wherein a contract of insurance is finalized as relates to the sales process?
Execution of a contract of insurance
Which group of people is offered additional protection by the Unfair Practices Act that regulates trade practices in the business of insurance?
survivors of the Holocaust
As used in the insurance code, the word "shall" is mandatory and the word "may" is permissive EXCEPT
unless otherwise apparent from the context.
According to CIC Section 1711, an organization ceases to exist as an entity eligible to hold a license EXCEPT
upon the termination of all contracts
"Notice of legal action" can mean all of the following EXCEPT
notice of action against the agent
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?
Insurers are permitted to schedule AIDS and HIV testing without the specific consent of the individual applying for insurance.
Which of the following is an INACCURATE statement regarding replacement for long-term care coverage?
Group long-term care policies have the same rules regarding replacement as individual long-term care policies.
Which is an ACCURATE statement regarding benefits of Medicare supplement and Medicare select plans?
There is no restriction for benefits after the coverage has been in effect for six months when involving a preexisting condition.
What do all long-term care insurers, agents, and brokers owe to the policyholder or prospective policyholder?
a duty of honesty, good faith, and fair dealing
All of the following are types of licenses EXCEPT
accident and health solicitor.
A permitted form of group disability insurance that conforms to the CIC meets all of the following conditions EXCEPT
the group numbers not less than 5 new entrants yearly.
Which coverage is a life insurance licensee NOT authorized to produce?
Coverage for major medical expenses
When does a disability policy become incontestable as to the statements contained in the application?
After this policy been in force for a period of two years during the lifetime of the insured.
When is a person acting as a licensee allowed to act as an agent of the insurer?
when the insurer has filed with the commissioner a notice of appointment
All of the following are requirements for an applicant to be licensed as a life & disability insurance analyst EXCEPT
having been employed by an insurance company.
Who is the California Life and Health & Guarantee Association is regulated by?
The California Insurance Commissioner
When does a license become inactive for a broker?
upon the termination of all appointments, or all endorsements
Life and Disability Insurance Analysts must provide an agreement with a statement that includes all of the following EXCEPT
that fees can be received for servicing a policy on which they were the selling agent.
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
during a 30 day period in which to accept the terms of the new policy.
All of the following are covered under the Access for Infants and Mothers Program EXCEPT
any mother who resides in the State of California whether or not she has applied
All of the following are permitted to have blanket insurance policies with specific restrictions EXCEPT
any union with dues-paying members
All of the following may be eligible to qualify for enrollment in the Healthy Families Program EXCEPT
children who fail to meet citizenship or immigration rules.
Which of the following regarding the Pre-Existing Condition Program (PCIP) is TRUE?
The State of California has transitioned their PCIP to the Federally run PCIP
What makes a comprehensive long-term care policy unique from other long-term care policies?
Provides for both institutional and home care.
Which of the following BEST defines the general concept of the 24-hour care plan?
It integrates workers? compensation medical care with the care provided by group health insurance.
Which of the following may insurers use in their underwriting?
family medical history
When shall an individual certificate be deemed to be "individualized" within the meaning of the CIC?
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
Which is considered unnecessary replacement for long-term coverage unless as a means to consolidate policies with one insurer?
Issuing 3 or more policies within a 12 month period
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?
to avoid discrimination between individuals in the same rating class who have been diagnosed with the condition of AIDS, ARC or HIV [Show Less]