PSI Test

Which is an INACCURATE statement on the purpose and intent of the Insurance Information and Privacy Protection Act?

• A group health policy shall provide equal coverage for registered domestic partners.

• The Act permits disclosure of insurance underwriting information and claim history records.

• The Act grants persons access to information collected in order to verify or dispute its accuracy.

• The Act enables applicants and policyholders to obtain reasons for adverse underwriting decisions.

Which are assets that are in excess of an insurer's liability for reported losses, expenses, taxes, and reinsurance of

outstanding risks?

• Stock

• capital stock

• Losses

• paid-in capital

All the following are requirements for an agent who advertises and transacts business on the Internet EXCEPT

• his or her state of business or principle residence

• his or her most recent license and appointment date

• his or her actual name and any fictitious commissioner

• his or her license number

The following are all penalties for unlawfully acting as an

insurer without a certificate of authority EXCEPT

• the individual may be sentenced to county jail for a period not to exceed one year.

• the individual will be banned from practicing

  insurance for a period of 5 years.

• The individual will be fined with a charge for misdemeanor

• The individual maybe charged a fine not to exceed $50,000

Which is TRUE regarding a life and health agent who has not been specifically appointed by the insurer?

• If a policy is issued, the agent is required to forfeit any commission unless appointed.

• The insurer is obliged to accept the application for underwriting for the life agent.

• If a policy is issued, the insurer is considered to have authorized the agent to act on its behalf.

• The insurer is required to report the agent appointment within 21 days of the policy issue.

While both work with an insurer, how does an "Insurance

broker" differ from an "insurance agent"?

• No transactions

• The broker does not transact on behalf of an insurer, while the agent does.

• Broker

• The broker does transact on behalf of an insurer, while the agents does.

Insurance is which type of contract?

• Life insurance

• umbrella insurance

• Homeowner insurance

• One agrees to indemnify against loss, damage

  or liability arising from a contingent or unknown risk

A person who does NOT hold a valid license may do which of the following

• examine contracts of insurance

• Insurance

• Insurer

• Broker

How is an insurance policy defined?

• A policy that covers all of the necessary items set forth in the contract.

• It's a written contract.

• A contract between two people.

• The written instrument, in which a contract of

  insurance is set forth.

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

• always accept the claim when it is submitted properly

• request a medical examination for the purpose of determining liability under a policy provision

• always reject the claim

• they are not allowed to look at claims