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California PSI Life Insurance Practice Test
2025 with 100 Most Recent Exam
Questions and Correct Answers/ PSI Life
Insurance Exam (California) Latest
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? - ..........ANSWER.......To avoid discrimination between
individuals in the same rating class who have been diagnosed with
the conditions of AIDS, ARC or HIV
Which of the following is TRUE regarding continuing eduction
requirements of an agent or broker? - ..........ANSWER.......Any
licensee shall satisfactorily complete 24 hours of instruction prior
to license renewal.
Which of the following provisions of free insurance offered as
incentive to purchase or rent property is TRUE? -
..........ANSWER.......It requires a separate charge or fee.
Elitedocs
, 2|Page
Which is the maximum fine for a person who transacts insurance
without a valid license? - ..........ANSWER.......$50,000 and/or
imprisonment for a period not exceeding one year.
Which of the following is TRUE regarding non-admitted insurers?
- ..........ANSWER.......Acting as an agent for a nonadmitted insurer
is considered a misdemeanor.
A policy shall specify all of the following EXCEPT -
..........ANSWER.......The method in which the coverage amount
was calculated
How long does an employee in a group insurance policy have to
exercise the conversion privilege after employment is terminated?
- ..........ANSWER.......31 days to use the conversion privilege and
begin an individual life insurance policy
Which group of people is offered additional protection by the
Unfair Practices Act that regulates trade practices in the business
of insurance? - ..........ANSWER.......Survivors of the Holocaust
Elitedocs
, 3|Page
Which of the following is TRUE regarding advertisements or
printed matter used by an agent or broker? -
..........ANSWER.......The printer material must accurately show
the relationship between the agent or broker and the agency.
Which circumstances in a pretext interview determine if the
questions are permissible? - ..........ANSWER.......When a insured
is consulted by a person who hides his true identity on purpose
when fraud for a claim is suspected.
An "insurance agent" means a person authorized, by and on
behalf of an insurer, to transact which of the following class of
insurance? - ..........ANSWER.......Annuities
Which form of negotiation is covered under the definition of
"transact" as applied to insurance? -
..........ANSWER.......Negotiations preliminary to execution
All of the following are to be specified in an insurance policy
EXCEPT - ..........ANSWER.......The financial rating of the insured.
Elitedocs
California PSI Life Insurance Practice Test
2025 with 100 Most Recent Exam
Questions and Correct Answers/ PSI Life
Insurance Exam (California) Latest
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? - ..........ANSWER.......To avoid discrimination between
individuals in the same rating class who have been diagnosed with
the conditions of AIDS, ARC or HIV
Which of the following is TRUE regarding continuing eduction
requirements of an agent or broker? - ..........ANSWER.......Any
licensee shall satisfactorily complete 24 hours of instruction prior
to license renewal.
Which of the following provisions of free insurance offered as
incentive to purchase or rent property is TRUE? -
..........ANSWER.......It requires a separate charge or fee.
Elitedocs
, 2|Page
Which is the maximum fine for a person who transacts insurance
without a valid license? - ..........ANSWER.......$50,000 and/or
imprisonment for a period not exceeding one year.
Which of the following is TRUE regarding non-admitted insurers?
- ..........ANSWER.......Acting as an agent for a nonadmitted insurer
is considered a misdemeanor.
A policy shall specify all of the following EXCEPT -
..........ANSWER.......The method in which the coverage amount
was calculated
How long does an employee in a group insurance policy have to
exercise the conversion privilege after employment is terminated?
- ..........ANSWER.......31 days to use the conversion privilege and
begin an individual life insurance policy
Which group of people is offered additional protection by the
Unfair Practices Act that regulates trade practices in the business
of insurance? - ..........ANSWER.......Survivors of the Holocaust
Elitedocs
, 3|Page
Which of the following is TRUE regarding advertisements or
printed matter used by an agent or broker? -
..........ANSWER.......The printer material must accurately show
the relationship between the agent or broker and the agency.
Which circumstances in a pretext interview determine if the
questions are permissible? - ..........ANSWER.......When a insured
is consulted by a person who hides his true identity on purpose
when fraud for a claim is suspected.
An "insurance agent" means a person authorized, by and on
behalf of an insurer, to transact which of the following class of
insurance? - ..........ANSWER.......Annuities
Which form of negotiation is covered under the definition of
"transact" as applied to insurance? -
..........ANSWER.......Negotiations preliminary to execution
All of the following are to be specified in an insurance policy
EXCEPT - ..........ANSWER.......The financial rating of the insured.
Elitedocs
