PSI Life (2026) | Real Exam
Practice Questions | Graded A+
• when must insurance records of insurance agents and brokers be made
available to the insurance Commissioner . Answer: At all times
• Any situation that presents the possibility of a loss is known as .
Answer: A loss exposure
• Which of the following information is not required to be
communicated in a Life Insurance contract? . Answer: Personal
judgment
• The direct distribution of insurance utilizes all of the following to
promote the sale of insurance EXCEPT . Answer: Telephone call from
an agent
• A contract in which one party promises to indemnify another against
loss that arises from an unknown even is . Answer: An insurance policy
• All of the occurrences listed below area examples of an insurable event
as defined by the California insurance Code EXCEPT . Answer: An
insured suffers a financial loss in the stat lottery
,• All of the following statements about aleatory contracts are true
EXCEPT . Answer: The insured and insurer contribute equally to the
contract
• All of the following would be considered unfair trade practices
EXCEPT . Answer: Committing any act of discrimination whether it be
deemed fair or unfair
• As authorized by the California Insurance Code, the Insurance
Commissioner has provided standard for names used by life insurance
agents. Under these standards which, if any, of these following are
automatically acceptable for Mary Brown, a holder of the CLU
designation? . Answer: Mary Brown Insurance Services
• A contract of indemnity is one in which . Answer: One party is
restored to the same financial position the party was in before the loss
occurred
• In insurance terminology, "indemnity" means . Answer: make whole
• As defined in the California Insurance Code, "Insurance" . Answer: is a
contract
• What would a person be guilty of who refuses to deliver any books,
records, or assets to the commissioner once a seizure order has been
executed? . Answer: A misdemeanor
, • An agent who is acting as an insurance agent, broker, solicitor, life
agent, accident and health, or bail agent acts in which capacity when
handling premiums or return premiums for an insured? . Answer:
Fiduciary
• Which of the following statement regarding risk id TRUE? . Answer:
Only pure risks are insurable
• The purchase of an insurance polity may accomplish all of the
following for the insured EXCEPT . Answer: The elimination of risk
• Insureds are entitled to recover an amount NOT greater than the
amount of their loss under the principle of . Answer: Indemnity
• What rule is used to determine the importance of a representation? .
Answer: The materiality of concealment
• The requred contents of a policy included all of the following EXCEPT
. Answer: The probability of loss
• All of the following are characteristics of reinsurance EXCEPT it .
Answer: Increases the unearned premium reserve
• According to the California Insurance Code, an insurance policy must
specify all of the following EXCEPT the . Answer: Financial rating of
the insurer
Practice Questions | Graded A+
• when must insurance records of insurance agents and brokers be made
available to the insurance Commissioner . Answer: At all times
• Any situation that presents the possibility of a loss is known as .
Answer: A loss exposure
• Which of the following information is not required to be
communicated in a Life Insurance contract? . Answer: Personal
judgment
• The direct distribution of insurance utilizes all of the following to
promote the sale of insurance EXCEPT . Answer: Telephone call from
an agent
• A contract in which one party promises to indemnify another against
loss that arises from an unknown even is . Answer: An insurance policy
• All of the occurrences listed below area examples of an insurable event
as defined by the California insurance Code EXCEPT . Answer: An
insured suffers a financial loss in the stat lottery
,• All of the following statements about aleatory contracts are true
EXCEPT . Answer: The insured and insurer contribute equally to the
contract
• All of the following would be considered unfair trade practices
EXCEPT . Answer: Committing any act of discrimination whether it be
deemed fair or unfair
• As authorized by the California Insurance Code, the Insurance
Commissioner has provided standard for names used by life insurance
agents. Under these standards which, if any, of these following are
automatically acceptable for Mary Brown, a holder of the CLU
designation? . Answer: Mary Brown Insurance Services
• A contract of indemnity is one in which . Answer: One party is
restored to the same financial position the party was in before the loss
occurred
• In insurance terminology, "indemnity" means . Answer: make whole
• As defined in the California Insurance Code, "Insurance" . Answer: is a
contract
• What would a person be guilty of who refuses to deliver any books,
records, or assets to the commissioner once a seizure order has been
executed? . Answer: A misdemeanor
, • An agent who is acting as an insurance agent, broker, solicitor, life
agent, accident and health, or bail agent acts in which capacity when
handling premiums or return premiums for an insured? . Answer:
Fiduciary
• Which of the following statement regarding risk id TRUE? . Answer:
Only pure risks are insurable
• The purchase of an insurance polity may accomplish all of the
following for the insured EXCEPT . Answer: The elimination of risk
• Insureds are entitled to recover an amount NOT greater than the
amount of their loss under the principle of . Answer: Indemnity
• What rule is used to determine the importance of a representation? .
Answer: The materiality of concealment
• The requred contents of a policy included all of the following EXCEPT
. Answer: The probability of loss
• All of the following are characteristics of reinsurance EXCEPT it .
Answer: Increases the unearned premium reserve
• According to the California Insurance Code, an insurance policy must
specify all of the following EXCEPT the . Answer: Financial rating of
the insurer
