PSI Life, Accident, Health Practice Exam Questions|210 Questions and Answers, 100% Verifie, Exams of Insurance Economics

Download PSI Life, Accident, Health Practice Exam Questions|210 Questions and Answers, 100% Verifie and more Exams Insurance Economics in PDF only on Docsity!

PSI Life, Accident, Health Practice Exam

Questions|210 Questions and Answers, 100%

Verified| Latest 2023/

Which is an ACCURATE statement regarding benefits of Medicare supplement and Medicare select plans?

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?

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?

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?

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

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?

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?

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. 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. 2 It requires a separate charge or fee. When is a person acting as a licensee allowed to act as an agent of the insurer?

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 2 when the insurer has filed with the commissioner a notice of appointment

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. 3 The loan proceeds are used to solely pay premiums for the policy and any expenses incurred. What makes a comprehensive long-term care policy unique from other long-term care policies?

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. 1 Provides for both institutional and home care. 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 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. 3 Transaction of matters subsequent to execution of the contract and arising out of it. While both work with an insurer, how does an "Insurance broker" differ from an "insurance agent"?

1 The broker gets paid by commission, but the agent does not. 2 The broker does not transact on behalf of an insurer, while the agent does. 3 The broker has to be licensed, but the agent meets less stringent requirements. 4 The broker is unable to provide the same competitive prices that an agent provides. 2 The broker does not transact on behalf of an insurer, while the agent does. Materiality to be solely determined by which of the following?

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 of the following is an insurer allowed to do in the event of a claim?

1 request or require an insured to submit to a polygraph examination when the claimant has a criminal record. 2 discriminate based upon the claimant's territory of the property insured 3 request a medical examination for the purpose of determining liability under a policy provision 4 attempt to settle a claim by a making a settlement offer that is unreasonably low 3 request a medical examination for the purpose of determining liability under a policy provision 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. 1 every licensee or claims agent shall transmit notice of the claim to the insurer in no more than 5 calendar days. What does concealment, whether intentional or unintentional, entitle the injured party to?

Once the policy has been accepted, it may only be cancelled by the insured under

very specific circumstances. 2 The insurer may rescind the contract on the basis of misrepresentation, concealment, or fraud by the insured. 3 Legal damages, not in excess of double the premiums paid. 4 A waiver of responsibility to meet contractual obligations. 2 The insurer may rescind the contract on the basis of misrepresentation, concealment, or fraud by the insured. According to CIC Section 1711, an organization ceases to exist as an entity eligible to hold a license EXCEPT

1 upon dissolution of a corporation. 2 upon the termination of all contracts. 3 upon dissolution of a copartnership. 4 upon the termination of an association. 2 upon the termination of all contracts. 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. Which is an INACCURATE statement regarding blanket life insurance?

1 The premium is remitted by the policyholder. 2 The policy is for the benefit of the policyholder. 3 The insurance is written under a policy issued to a newspaper, magazine or other periodical. 4 The policy insures without any requirement of individual enrollment or individual commitment. 2 The policy is for the benefit of the policyholder. 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?

1 The commissioner must make application to the Superior Court and obtain a court order. 2 The commissioner may take possession of offices, books and property immediately without court order. 3 The Superior Court shall authorize a receiver at the request of the Commissioner without delay. 4 The commissioner shall file a petition with the United States Secretary of the Treasury for appointment of a receiver. 2 The commissioner may take possession of offices, books and property immediately without court order. Which of the following is an INACCURATE statement regarding replacement for long-term care coverage?

The policy must materially improve the position of the insured.

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. 3 Group long-term care policies have the same rules regarding replacement as individual long-term care policies. 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. 1 Non-payment of premiums after the policy has been in force for two years. Which of the following is TRUE regarding change of address for a licensee?

A licensee must notify the commissioner of an address change, but a license applicant does not. 2 The law only applies to the physical mailing address, for changes in email addresses are exempt. 3 The commissioner must be notified immediately of any change in the personal, business, or email address. 4 A licensee or applicant has 30 days to notify the commissioner of any change in email or physical address.

The commissioner must be notified immediately of any change in the personal, business, or email address. An agent or representative who issues long term care insurance must do all of the following EXCEPT

1 establish marketing procedures to ensure that excessive coverage is not issued or sold. 2 complete a total of 10 hours of continuing education if licensed before January 1st,

3 complete the training requirements prior to soliciting customers for the sale of long term care products. 4 establish accounting procedures within 1 year to verify compliance with the insurance statutes of California. 2 complete a total of 10 hours of continuing education if licensed before January 1st,

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. 1 The proposed insured must pay for the cost of the testing. What happens under a misstatement of age clause on a disability policy?

The policy would be terminated and all premiums would be returned to the policy

owner. 2 The policy would be terminated and all premiums would be retained by the insurance company. 3 All amounts payable under this policy shall be what the premium originally would have purchased and been paid at the correct age. 4 Prior to any benefits being payable, the insured shall rate and pay the difference in premiums based u 1 The policy would be terminated and all premiums would be returned to the policy owner. 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. 3 Yes, they may do so on any group plan, with or without annuities. 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?

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. 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. All of the following are requirements for an applicant to be licensed as a life & disability insurance analyst EXCEPT

1 having a thorough knowledge of life or disability insurance products. 2 having been employed by an insurance company. 3 being a fit and proper person to hold the license applied for. 4 being of good business reputation and of good general reputation. 2 having been employed by an insurance company. 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. 3 The California Insurance Commissioner 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.

an institution of learning. 1 any union with dues-paying members. 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. 3 $50,000 and/or imprisonment for a period not exceeding one year. 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. 3 the applicant is lacking in good judgment. Concealment, whether intentional or unintentional, entitles the injured party to?

1 Modify insurance. 2 Rescind insurance. 3 Supplemental benefits. 4 Reduced cost insurance.

Rescind insurance. 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. 2 Insurers are permitted to schedule AIDS and HIV testing without the specific consent of the individual applying for insurance. 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. 4 When they are subject to the jurisdiction of another agency of this or another state or the federal government. 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 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 3 to avoid discrimination between individuals in the same rating class who have been diagnosed with the condition of AIDS, ARC or HIV Which of the following may insurers use in their underwriting?

ancestry 2 family medical history 3 genetic characteristics 4 national origin 2 family medical history 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. 2 The option to name a new beneficiary can be exercised 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. 1 the Office of Administrative Law (OAL) may substitute its own judgment for that of the rulemaking agency. 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. 2 When an insured is consulted by a person who hides his true identity on purpose when fraud for a claim is suspected.

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 2 upon the termination of all appointments, or all endorsements 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 3 coverage for a minor child under age 18 or a corporate owned policy on an employee 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. 3 a name would not be denied on the basis of being too similar to other company names. 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 1 a duty of honesty, good faith, and fair dealing 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 1 after 6 months if the premiums have been paid 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. 3 The protection covers a specified percentage of actual or reasonable charges, and includes a maximum specified indemnity amount. 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 2 31 days to use the conversion privilege and begin an individual life insurance policy. What are the requirements for notices required by any provision of the insurance code to a person unless expressly provided otherwise?

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. 3 They should be sent to a mailing notice 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 1 a mutual insurance company that decides to convert to a stock company 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. 3 that fees can be received for servicing a policy on which they were the selling agent. 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.