PSI Practice Test 150 Questions with Complete Solutions Which of the following is the method wherein a contract of insurance is finalized as relates to the sales process?
- Rescission of the contract.
- Transaction of unrelated matters that are made by the same parties.
- Transaction of matters subsequent to the execution of the contract and arising out of
- Termination of future sales of the contract. - Correct Answer Execution of a contract
- Correct Answer $50,000 and/or imprisonment for a period not exceeding one year.
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of insurance Concealment, whether intentional or unintentional, entitles the injured party to? - Correct Answer Rescind insurance.A policy shall specify all of the following EXCEPT - Correct Answer the method in which the coverage amount was calculated.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 How is an insurance policy defined? - Correct Answer The written instrument, in which a contract of insurance is set forth.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take possession of offices, books and property immediately without court order.When may a representation be altered or withdrawn? - Correct Answer Before the insurance is effected.What is the maximum fine for a person who transacts insurance without a valid license?
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.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 1 / 2
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 Who is eligible to be an insurer? - Correct Answer Any person, company, organization, or corporation that is capable of making a contract.Which of the following is TRUE regarding nonadmitted insurers? - Correct Answer Acting as an agent for a nonadmitted insurer is considered a misdemeanor.All of the following define insolvency EXCEPT - Correct Answer revocation of certificate of authority by the commissioner.All of the following are a duty of an insurer in regards to claims on file and record documentation EXCEPT - Correct Answer maintaining any sales material, which had a material impact on the claims process.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.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.Which of the following is TRUE regarding change of address for a licensee? - Correct Answer The commissioner must be notified immediately of any change in the personal, business, or email address.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.Which statement accurately describes de-mutualization? - Correct Answer a mutual insurance company that decides to convert to a stock company Which of the following is an insurer allowed to do in the event of a claim? - Correct Answer request a medical examination for the purpose of determining liability under a policy provision 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.
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