PSI Practice Test Questions and Answers
Latest 2024
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 - CORRECT ANSWER-upon the termination of all appointments, or all
endorsements
How is the insurance commissioner chosen?
1.
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. - CORRECT
ANSWER-Elected by the people.
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 - CORRECT ANSWER-by the
insurer, for administrative purposes only, when it is clear that the applicant has
not made the insertions
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 - CORRECT ANSWER-after 6 months if the premiums have been paid
What type of licensee can receive a fee from any person or source other than an
insurer?
1.
Life and Disability Insurance Analyst
2.
Life and Disability Insurance Agent
3.
Life Insurance Broker
4.
Insurance Solicitor - CORRECT ANSWER-Life and Disability Insurance Analyst
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?
1.
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 - CORRECT
ANSWER-to avoid discrimination between individuals in the same rating class
who have been diagnosed with the condition of AIDS, ARC or HIV
If fiduciary funds are received by any licensee, the funds shall be maintained in
any of the following EXCEPT
1.
bonds issued in all 50 states of the United States.
2.
United States government bonds and treasury certificates.
3.
certificates of deposit of banks or savings and loan associations licensed by any
state.
4.
repurchase agreements collateralized by securities issued by the United States
government. - CORRECT ANSWER-bonds issued in all 50 states of the United
States.
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 - CORRECT
ANSWER-at any time
Latest 2024
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 - CORRECT ANSWER-upon the termination of all appointments, or all
endorsements
How is the insurance commissioner chosen?
1.
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. - CORRECT
ANSWER-Elected by the people.
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 - CORRECT ANSWER-by the
insurer, for administrative purposes only, when it is clear that the applicant has
not made the insertions
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 - CORRECT ANSWER-after 6 months if the premiums have been paid
What type of licensee can receive a fee from any person or source other than an
insurer?
1.
Life and Disability Insurance Analyst
2.
Life and Disability Insurance Agent
3.
Life Insurance Broker
4.
Insurance Solicitor - CORRECT ANSWER-Life and Disability Insurance Analyst
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?
1.
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 - CORRECT
ANSWER-to avoid discrimination between individuals in the same rating class
who have been diagnosed with the condition of AIDS, ARC or HIV
If fiduciary funds are received by any licensee, the funds shall be maintained in
any of the following EXCEPT
1.
bonds issued in all 50 states of the United States.
2.
United States government bonds and treasury certificates.
3.
certificates of deposit of banks or savings and loan associations licensed by any
state.
4.
repurchase agreements collateralized by securities issued by the United States
government. - CORRECT ANSWER-bonds issued in all 50 states of the United
States.
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 - CORRECT
ANSWER-at any time
