PSI - LIFE, ACCIDENT, AND HEALTH QUESTIONS AND ANSWERS WITH CERTIFIED SOLUTIONS

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PSI - LIFE, ACCIDENT, AND HEALTH QUESTIONS AND ANSWERS WITH CERTIFIED SOLUTIONS What happens under a misstatement of age clause on a disability policy? 1. The policy would be terminated and all p... remiums 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 upon his correct age ✔✔All amounts payable under this policy shall be what the premium originally would have purchased and been paid at the correct age. Whether admitted or nonadmitted, how does a "foreign" insurer differ from an "alien" or "domestic" insurer? 1. A "foreign" insurer is organized under the laws of another country. 2. A "foreign" insurer is prohibited from transacting insurance with the State of California. 3. A "foreign" insurer is organized under the laws of another state within the United States. 4. A "foreign" insurer transacts business in multiple languages not spoken in the United States. ✔✔A "foreign" insurer is organized under the laws of another state within the United States. 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. 4. Specific penalties shall be determined by the Insurance Commissioner on a case by case basis. ✔✔Acting as an agent for a nonadmitted insurer is considered a misdemeanor. What happens if an owner requests an immediate investment of monies in a variable annuity policy be returned during the 30 day cancellation period? 1. The owner shall forfeit any money invested. 2. The owner shall receive the market value at the time of the cancellation. 3. The owner shall receive a refund of premium but nothing earned during cancellation period. 4. The owner shall receive a full refund of premium, plus the market value, minus any commission fees. ✔✔The owner shall receive the market value at the time of the cancellation. Can any life insurer issue group life insurance with premi [Show More]

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