California Life Insurance Exam PSI
A participating company is also referred to as which type Mutual insurer
of insurer?
An insurer owned by its policyholders, is called a Mutual insurer
What is a participating life insurance policy? Contract that allows the policyowner to receive a share of surplus in the form of
policy dividends
An insurer enter into a contract with a third-party to Reinsurance
ensure itself against losses from insurance policies it
issues. What is this agreement called?
John owns an insurance company that gives him the Participating
right to share and then sure surplus. What kind of policy
is this?
Which of the following is not a characteristic of Increases the unearned premium reserved
reinsurance?
Which of the following is not a benefit of insurance? Losses due to fraud are eliminated
When a mutual insurer becomes a stock company, the Demutualization
process is called
Which of the following is a contract that involves one Insurance policy
party which indemnifies another one a loss arises from
an unknown event?
Which of the following is an insurer established by a Captive insurers
parent company's loss exposure's?
Which of the following is not considered to be a definition Probability that an event will occur
for the term "loss"?
Which of the following is not considered a definition of a The cause of loss
risk?
Which of the following best describes the statement; " Law of large numbers
the more times, and event is repeated, the more
predictable the outcome becomes"?
Which of the following would not be accomplished with Risk is eliminated
the purchase of an insurance policy?
Which of the following is a situation where there is a Speculative risk
possibility of either a loss or gain?
Which of the following is any situation that presents the Loss
possibility of a loss?
, California Life Insurance Exam PSI
An insurer having a large number of similar exposure the greater the number insured, the more accurately that is her can predict
units is considered important because: losses & set appropriate premiums
Which of these statements correctly describes risks? Pure risk is the only insurable risk
Which type of risk is gambling? Speculative risk
Moral hazard is described as the: increased chance of a loss because of an insured's dishonest tendencies
All of the following circumstances must be met for los Probability of loss is unknown
retention to be an effective, risk management technique,
except
All of the following circumstances must be met for lost Probability of loss is unknown
attention to be an effective risk management technique,
except
After a policy has lapsed, which provision allows the Reinstatement provision
insurer to continue coverage
In a life insurance policy, the entire contract consists of policy and attached application
Which policy provision protects the policy owner from Grace period
unintentional lapse of the contract?
Which of the following is not a common life insurance Extended term
policy later?
What an accidental death benefit is added to a whole life Policies, cash value is not affected
policy, how does this affect the policies cash value?
A life insurance policy can be surrendered for its cash Nonforfeiture options
value under which policy provision?
Which of the following does a policy owner not have the Dividend schedule
right to change?
Which statement is true regarding policy dividends? A dividend option is selected by the insured at the time of the policy purchase
What does the grace period allow a life insurance policy Make a premium payment after the due date without any loss of coverage
to do?
If an insured dies because of an accident, which type of Accidental death rider
life insurance rider will provide additional coverage?
A participating company is also referred to as which type Mutual insurer
of insurer?
An insurer owned by its policyholders, is called a Mutual insurer
What is a participating life insurance policy? Contract that allows the policyowner to receive a share of surplus in the form of
policy dividends
An insurer enter into a contract with a third-party to Reinsurance
ensure itself against losses from insurance policies it
issues. What is this agreement called?
John owns an insurance company that gives him the Participating
right to share and then sure surplus. What kind of policy
is this?
Which of the following is not a characteristic of Increases the unearned premium reserved
reinsurance?
Which of the following is not a benefit of insurance? Losses due to fraud are eliminated
When a mutual insurer becomes a stock company, the Demutualization
process is called
Which of the following is a contract that involves one Insurance policy
party which indemnifies another one a loss arises from
an unknown event?
Which of the following is an insurer established by a Captive insurers
parent company's loss exposure's?
Which of the following is not considered to be a definition Probability that an event will occur
for the term "loss"?
Which of the following is not considered a definition of a The cause of loss
risk?
Which of the following best describes the statement; " Law of large numbers
the more times, and event is repeated, the more
predictable the outcome becomes"?
Which of the following would not be accomplished with Risk is eliminated
the purchase of an insurance policy?
Which of the following is a situation where there is a Speculative risk
possibility of either a loss or gain?
Which of the following is any situation that presents the Loss
possibility of a loss?
, California Life Insurance Exam PSI
An insurer having a large number of similar exposure the greater the number insured, the more accurately that is her can predict
units is considered important because: losses & set appropriate premiums
Which of these statements correctly describes risks? Pure risk is the only insurable risk
Which type of risk is gambling? Speculative risk
Moral hazard is described as the: increased chance of a loss because of an insured's dishonest tendencies
All of the following circumstances must be met for los Probability of loss is unknown
retention to be an effective, risk management technique,
except
All of the following circumstances must be met for lost Probability of loss is unknown
attention to be an effective risk management technique,
except
After a policy has lapsed, which provision allows the Reinstatement provision
insurer to continue coverage
In a life insurance policy, the entire contract consists of policy and attached application
Which policy provision protects the policy owner from Grace period
unintentional lapse of the contract?
Which of the following is not a common life insurance Extended term
policy later?
What an accidental death benefit is added to a whole life Policies, cash value is not affected
policy, how does this affect the policies cash value?
A life insurance policy can be surrendered for its cash Nonforfeiture options
value under which policy provision?
Which of the following does a policy owner not have the Dividend schedule
right to change?
Which statement is true regarding policy dividends? A dividend option is selected by the insured at the time of the policy purchase
What does the grace period allow a life insurance policy Make a premium payment after the due date without any loss of coverage
to do?
If an insured dies because of an accident, which type of Accidental death rider
life insurance rider will provide additional coverage?
