Insurance Practice Test Questions and Answers (Verified Answers) Latest Update 2025 GRADED, Exams of Nursing

Download Insurance Practice Test Questions and Answers (Verified Answers) Latest Update 2025 GRADED and more Exams Nursing in PDF only on Docsity!

Answers) Latest Update 2025 GRADED A+

Which is TRUE regarding a life and health agent who has not been specifically appointed by the insurer? - Correct Answer ✅If a policy is issued, the insurer is considered 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? - Correct Answer ✅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? - Correct Answer ✅Rescind the contract. Which is an INACCURATE statement regarding a life settlement contract? - Correct Answer ✅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 - Correct Answer ✅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? - Correct Answer ✅Acting as an agent for a nonadmitted insurer is considered a misdemeanor.

Insurance Practice Test Questions and Answers (Verified

Answers) Latest Update 2025 GRADED A+

When working on behalf of an insurer for which they are not specifically appointed, what may a licensed agent do? - Correct Answer ✅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? - Correct Answer ✅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? - Correct Answer ✅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 - Correct Answer ✅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? - Correct Answer ✅A "foreign" insurer is organized under the laws of another state within the United States.

Insurance Practice Test Questions and Answers (Verified

Answers) Latest Update 2025 GRADED A+

All of the following are examples of representation EXCEPT - Correct Answer ✅it may be altered after the insurance is effected. A policy shall specify all of the following EXCEPT - Correct Answer ✅the method in which the coverage amount was calculated. Which of the following actions is considered part of the insurance sales process? - Correct Answer ✅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? - Correct Answer ✅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? - Correct Answer ✅The actual and fictitious business names must be registered with the commissioner.

Insurance Practice Test Questions and Answers (Verified

Answers) Latest Update 2025 GRADED A+

"Person" means all of the following EXCEPT - Correct Answer ✅an organizational trust. Which of the following is a party to a contract of insurance bound to communicate EXCEPT - Correct Answer ✅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? - Correct Answer ✅paid-in capital Which circumstances in a pretext interview determine if the questions are permissible? - Correct Answer ✅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 - Correct Answer ✅complete a total of 10 hours of continuing education if licensed before January 1st, 2002.

Insurance Practice Test Questions and Answers (Verified

Answers) Latest Update 2025 GRADED A+

Which of the following provisions of free insurance offered as an incentive to purchase or rent property is TRUE? - Correct Answer ✅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 - Correct Answer ✅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? - Correct Answer ✅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? - Correct Answer ✅Negotiations preliminary to execution

Insurance Practice Test Questions and Answers (Verified

Answers) Latest Update 2025 GRADED A+

How can a licensee surrender any license for cancellation? - Correct Answer ✅By submitting written notice or by delivering the license to the commissioner. Where shall an express warranty be made? - Correct Answer ✅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? - Correct Answer ✅proof of claim What is the maximum fine for a person who transacts insurance without a valid license? - Correct Answer ✅$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 - Correct Answer ✅every licensee or claims agent shall transmit notice of the claim to the insurer in no more than 5 calendar days.

Insurance Practice Test Questions and Answers (Verified

Answers) Latest Update 2025 GRADED A+

When may a surplus line broker solicit and place insurance for a home state insured with a nonadmitted insurer? - Correct Answer ✅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? - Correct Answer ✅tax return When is a representation false? - Correct Answer ✅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? - Correct Answer ✅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? - Correct Answer ✅survivors of the Holocaust

Insurance Practice Test Questions and Answers (Verified

Answers) Latest Update 2025 GRADED A+

As used in the insurance code, the word "shall" is mandatory and the word "may" is permissive EXCEPT - Correct Answer ✅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 - Correct Answer ✅upon the termination of all contracts "Notice of legal action" can mean all of the following EXCEPT - Correct Answer ✅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? - Correct Answer ✅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? - Correct Answer ✅Group long-term care

Insurance Practice Test Questions and Answers (Verified

Answers) Latest Update 2025 GRADED A+

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? - Correct Answer ✅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? - Correct Answer ✅a duty of honesty, good faith, and fair dealing All of the following are types of licenses EXCEPT - Correct Answer ✅accident and health solicitor. A permitted form of group disability insurance that conforms to the CIC meets all of the following conditions EXCEPT - Correct Answer ✅the group numbers not less than 5 new entrants yearly.

Insurance Practice Test Questions and Answers (Verified

Answers) Latest Update 2025 GRADED A+

Which coverage is a life insurance licensee NOT authorized to produce? - Correct Answer ✅Coverage for major medical expenses When does a disability policy become incontestable as to the statements contained in the application? - Correct Answer ✅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? - Correct Answer ✅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 - Correct Answer ✅having been employed by an insurance company. Who is the California Life and Health & Guarantee Association is regulated by? - Correct Answer ✅The California Insurance Commissioner

Insurance Practice Test Questions and Answers (Verified

Answers) Latest Update 2025 GRADED A+

When does a license become inactive for a broker? - Correct Answer ✅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 - Correct Answer ✅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 - Correct Answer ✅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 - Correct Answer ✅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 - Correct Answer ✅any union with dues-paying members

Insurance Practice Test Questions and Answers (Verified

Answers) Latest Update 2025 GRADED A+

All of the following may be eligible to qualify for enrollment in the Healthy Families Program EXCEPT - Correct Answer ✅children who fail to meet citizenship or immigration rules. Which of the following regarding the Pre-Existing Condition Program (PCIP) is TRUE? - Correct Answer ✅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? - Correct Answer ✅Provides for both institutional and home care. Which of the following BEST defines the general concept of the 24-hour care plan? - Correct Answer ✅It integrates workers? compensation medical care with the care provided by group health insurance. Which of the following may insurers use in their underwriting? - Correct Answer ✅family medical history

Insurance Practice Test Questions and Answers (Verified

Answers) Latest Update 2025 GRADED A+

When shall an individual certificate be deemed to be "individualized" within the meaning of the CIC? - Correct Answer ✅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? - Correct Answer ✅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? - Correct Answer ✅to avoid discrimination between individuals in the same rating class who have been diagnosed with the condition of AIDS, ARC or HIV How long does an employee in a group insurance policy have to exercise the conversion privilege after employment is terminated? - Correct Answer ✅ 31 days to use the conversion privilege and begin an individual life insurance policy

Insurance Practice Test Questions and Answers (Verified

Answers) Latest Update 2025 GRADED A+

After what time period is the policy considered to have been delivered in an acceptable way if premiums have been paid? - Correct Answer ✅after 6 months if the premiums have been paid When a replacement policy is being considered, what is required from an insurer? - Correct Answer ✅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. Which of the following is TRUE of the conversion privileges for the insured in group life insurance? - Correct Answer ✅The option to name a new beneficiary can be exercised by the owner. Losses arising from all of the following conditions may be excluded from group life policies EXCEPT - Correct Answer ✅natural disasters

Insurance Practice Test Questions and Answers (Verified

Answers) Latest Update 2025 GRADED A+

Except as provided by sections 10203.5 and 10203.8 in the CIC, the insurer shall provide which document to be delivered by the employer to the employee? - Correct Answer ✅An individual certificate of insurance All of the following are TRUE about the rules regarding the sale of life insurance and annuities to seniors age 65 or older EXCEPT - Correct Answer ✅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. Which is an INACCURATE statement regarding underwriting based on genetic testing? - Correct Answer ✅The proposed insured must pay for the cost of the testing. Which of the following types of coverage must have a proven insurable interest at the time of the application? - Correct Answer ✅coverage for a minor child under age 18 or a corporate owned policy on an employee

Insurance Practice Test Questions and Answers (Verified

Answers) Latest Update 2025 GRADED A+

As long as employment continues, which is the ONLY reason the validity of a group life insurance policy can be contested? - Correct Answer ✅Non- payment of premiums after the policy has been in force for two years. 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? - Correct Answer ✅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 blanket life insurance? - Correct Answer ✅The policy is for the benefit of the policyholder. What happens if an owner requests an immediate investment of monies in a variable annuity policy be returned during the 30 day cancellation period? - Correct Answer ✅The owner shall receive the market value at the time of the cancellation

Insurance Practice Test Questions and Answers (Verified