PSI Life, Accident, Health Practice Exam - Questions and Answers Which of the following is TRUE of the conversion privileges for the insured in group
... [Show More] 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. 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. 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 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 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 All of the following are TRUE regarding regulation and use of an agency name EXCEPT 1 the use of the name must not mislead the public in any way. 2 the company must file with the commissioner and request approval of the name. 3 a name would not be denied on the basis of being too similar to other company names. 4 the name may not imply the agency offers services for which it is not licensed or approved. What do all long-term care insurers, agents, and brokers owe to the policyholder or prospective policyholder? 1 a duty of honesty, good faith, and fair dealing 2 a duty to provide courteous and confidential service 3 a duty to provide the best price available for the coverage 4 a duty of integrity, compassion, and considerate service 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 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. 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 What are the requirements for notices required by any provision of the insurance code to a person unless expressly provided otherwise? 1 They should be made by telephone on a recorded line. 2 They should be received by email to their registered email address. 3 They should be sent to a mailing notice at their residence or place of business. 4 They should be prioritized with overnight express at their residence or place of business. 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 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. 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. 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. 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. 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. 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. When can a person act as an agent of the insurer? 1 when the agent participates in an insurer workshop 2 when the agent receives a compliance illustration from the insurer 3 when the insurer has accepted contracting paperwork from the agent 4 when the insurer has filed with the commissioner a notice of appointment 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. 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. [Show Less]