California PSI Life Insurance Exam
2025/2026 [Actual Test] Accurate
Questions & Verified Answers |
Guaranteed Pass | Brand New
Section 1: California Insurance Laws & Regulations (30
questions, 2 marks each)
Question 1: In 2025, under Senate Bill 263 (effective January 1, 2025), a life agent licensed on
or after January 1, 2024, must complete a one-time 4-hour training course before soliciting
consumers for which type of life insurance policy?
A) Term life with cash value
B) Non-term life insurance (e.g., whole or universal)
C) Variable annuities only
D) Group term life
Answer: B) Non-term life insurance (e.g., whole or universal)
Detailed Explanation: California Insurance Code Section 1749.81(a), added by SB 263
(Chapter 2, Statutes of 2024), requires life agents licensed on or after January 1, 2024, to
complete 4 hours of training before soliciting individual consumers for life insurance other than
term life (i.e., policies with cash value like whole or universal life). This ensures agents
understand product features, ethics, and compliance to protect consumers. Agents licensed
before 2024 are exempt.
Question 2: A newly licensed life agent in California applies for their license in March 2025.
What prelicensing education must they complete, including any ethics component?
A) 20 hours total, with no ethics requirement
B) 12 hours on ethics and the California Insurance Code, plus 20 hours of line-specific study
C) 24 hours of CE only
D) 8 hours on long-term care only
,Answer: B) 12 hours on ethics and the California Insurance Code, plus 20 hours of line-specific
study
Detailed Explanation: Per California Insurance Code Section 1749(a)(1), applicants for a life
agent license must complete 12 hours of study on ethics and the Insurance Code (including 1
hour on insurance fraud) and 20 hours of prelicensing study specific to life insurance. This
applies to all new applicants in 2025, as outlined in the California Department of Insurance's
licensing requirements.
Question 3: Scenario: An agent licensed in 2024 plans to sell variable life insurance policies
starting January 2025. What additional training is required before their first license renewal?
A) 4-hour non-term life course
B) 2-hour variable life insurance course
C) 8-hour annuity suitability course
D) No additional training needed
Answer: B) 2-hour variable life insurance course
Detailed Explanation: California Insurance Code Section 1749.81(b), effective January 1, 2025,
mandates that life agents selling variable life policies complete 2 hours of topic-specific training
before each license renewal. This curriculum, approved by the CDI in 2025, covers regulatory
requirements and ethical guidelines for variable products, ensuring compliance with Bulletin
87-3.
Question 4: The California Insurance Commissioner has the authority to investigate agent
misconduct under which code section?
A) Section 331
B) Section 790.03
C) Section 1749.3
D) Section 10113.71
Answer: B) Section 790.03
Detailed Explanation: California Insurance Code Section 790.03 outlines unfair and deceptive
acts or practices in the business of insurance, empowering the Commissioner to investigate and
penalize agents for violations like misrepresentation or rebating. This section supports the CDI's
regulatory oversight for consumer protection in 2025.
Question 5: For a life agent renewing their license in 2026, what is the minimum continuing
education (CE) requirement, including ethics?
A) 12 hours total, 3 in ethics
B) 24 hours total, 3 in ethics
C) 36 hours total, 6 in ethics
, D) 8 hours total, no ethics
Answer: B) 24 hours total, 3 in ethics
Detailed Explanation: Under California Insurance Code Section 1749.3, life agents must
complete 24 hours of CE biennially for renewal, with 3 hours in ethics (including 1 hour on
anti-fraud). This applies to renewals in 2026 and counts toward product-specific trainings like the
2025 variable life course.
Question 6: Scenario: A life agent fails to disclose a material fact during a policy sale in 2025.
What regulatory action can the CDI impose?
A) Only a warning
B) License suspension or revocation under Section 1738
C) Mandatory CE only
D) Fine up to $1,000 only
Answer: B) License suspension or revocation under Section 1738
Detailed Explanation: California Insurance Code Section 1738 prohibits agents from
misrepresenting or omitting material facts, allowing the Commissioner to suspend or revoke
licenses for violations. In 2025, this aligns with enhanced consumer protection under SB 263.
Question 7: What is the fingerprinting requirement for new life agent applicants in California as
of 2025?
A) Optional
B) Required via Live Scan for background check
C) Only for non-residents
D) Waived for those over 70
Answer: B) Required via Live Scan for background check
Detailed Explanation: Per California Insurance Code Section 1668 and CDI procedures, all
new applicants must submit fingerprints via Live Scan for DOJ/FBI background checks. This
ensures ethical standards and applies uniformly in 2025, with fees increased for non-residents.
Question 8: Under 2025 regulations, when must a life agent report changes in background
information to the CDI?
A) Annually only
B) Within 30 days
C) At license renewal only
D) Never required
Answer: B) Within 30 days
2025/2026 [Actual Test] Accurate
Questions & Verified Answers |
Guaranteed Pass | Brand New
Section 1: California Insurance Laws & Regulations (30
questions, 2 marks each)
Question 1: In 2025, under Senate Bill 263 (effective January 1, 2025), a life agent licensed on
or after January 1, 2024, must complete a one-time 4-hour training course before soliciting
consumers for which type of life insurance policy?
A) Term life with cash value
B) Non-term life insurance (e.g., whole or universal)
C) Variable annuities only
D) Group term life
Answer: B) Non-term life insurance (e.g., whole or universal)
Detailed Explanation: California Insurance Code Section 1749.81(a), added by SB 263
(Chapter 2, Statutes of 2024), requires life agents licensed on or after January 1, 2024, to
complete 4 hours of training before soliciting individual consumers for life insurance other than
term life (i.e., policies with cash value like whole or universal life). This ensures agents
understand product features, ethics, and compliance to protect consumers. Agents licensed
before 2024 are exempt.
Question 2: A newly licensed life agent in California applies for their license in March 2025.
What prelicensing education must they complete, including any ethics component?
A) 20 hours total, with no ethics requirement
B) 12 hours on ethics and the California Insurance Code, plus 20 hours of line-specific study
C) 24 hours of CE only
D) 8 hours on long-term care only
,Answer: B) 12 hours on ethics and the California Insurance Code, plus 20 hours of line-specific
study
Detailed Explanation: Per California Insurance Code Section 1749(a)(1), applicants for a life
agent license must complete 12 hours of study on ethics and the Insurance Code (including 1
hour on insurance fraud) and 20 hours of prelicensing study specific to life insurance. This
applies to all new applicants in 2025, as outlined in the California Department of Insurance's
licensing requirements.
Question 3: Scenario: An agent licensed in 2024 plans to sell variable life insurance policies
starting January 2025. What additional training is required before their first license renewal?
A) 4-hour non-term life course
B) 2-hour variable life insurance course
C) 8-hour annuity suitability course
D) No additional training needed
Answer: B) 2-hour variable life insurance course
Detailed Explanation: California Insurance Code Section 1749.81(b), effective January 1, 2025,
mandates that life agents selling variable life policies complete 2 hours of topic-specific training
before each license renewal. This curriculum, approved by the CDI in 2025, covers regulatory
requirements and ethical guidelines for variable products, ensuring compliance with Bulletin
87-3.
Question 4: The California Insurance Commissioner has the authority to investigate agent
misconduct under which code section?
A) Section 331
B) Section 790.03
C) Section 1749.3
D) Section 10113.71
Answer: B) Section 790.03
Detailed Explanation: California Insurance Code Section 790.03 outlines unfair and deceptive
acts or practices in the business of insurance, empowering the Commissioner to investigate and
penalize agents for violations like misrepresentation or rebating. This section supports the CDI's
regulatory oversight for consumer protection in 2025.
Question 5: For a life agent renewing their license in 2026, what is the minimum continuing
education (CE) requirement, including ethics?
A) 12 hours total, 3 in ethics
B) 24 hours total, 3 in ethics
C) 36 hours total, 6 in ethics
, D) 8 hours total, no ethics
Answer: B) 24 hours total, 3 in ethics
Detailed Explanation: Under California Insurance Code Section 1749.3, life agents must
complete 24 hours of CE biennially for renewal, with 3 hours in ethics (including 1 hour on
anti-fraud). This applies to renewals in 2026 and counts toward product-specific trainings like the
2025 variable life course.
Question 6: Scenario: A life agent fails to disclose a material fact during a policy sale in 2025.
What regulatory action can the CDI impose?
A) Only a warning
B) License suspension or revocation under Section 1738
C) Mandatory CE only
D) Fine up to $1,000 only
Answer: B) License suspension or revocation under Section 1738
Detailed Explanation: California Insurance Code Section 1738 prohibits agents from
misrepresenting or omitting material facts, allowing the Commissioner to suspend or revoke
licenses for violations. In 2025, this aligns with enhanced consumer protection under SB 263.
Question 7: What is the fingerprinting requirement for new life agent applicants in California as
of 2025?
A) Optional
B) Required via Live Scan for background check
C) Only for non-residents
D) Waived for those over 70
Answer: B) Required via Live Scan for background check
Detailed Explanation: Per California Insurance Code Section 1668 and CDI procedures, all
new applicants must submit fingerprints via Live Scan for DOJ/FBI background checks. This
ensures ethical standards and applies uniformly in 2025, with fees increased for non-residents.
Question 8: Under 2025 regulations, when must a life agent report changes in background
information to the CDI?
A) Annually only
B) Within 30 days
C) At license renewal only
D) Never required
Answer: B) Within 30 days
