PSI LIFE INSURANCE EXAM PREPARATION
2026 EXAM REVIEW SOLVED QUESTIONS
FULL SOLUTION
⩥ Which of the following is TRUE regarding the use of fictitious names
for business? Answer: The actual and fictitious business names must be
registered with the commissioner
⩥ Which is an ACCURATE statement regarding dependent coverage
under a group insurance policy? Answer: The coverage must not exceed
more than 100 percent of the coverage for the insured employee
⩥ According to CIC Section 1711, an organization ceases to exist as an
entity eligible to hold a license EXCEPT Answer: upon the termination
of all contracts
⩥ As long as employment continues, which is the ONLY reason the
validity of a group life insurance policy can be contested? Answer: Non-
payment of premiums after the policy has bee in force for two years.
⩥ All of the following are TRUE about the rules regarding the sale of
life insurance and annuities to seniors age 65 or older EXCEPT Answer:
The agent, broker, or insurer is required to show a copy of their
insurance license with name, address, and phone number when
conducting business in the senior home
,⩥ What is a solicitor employed to do for a policy other than life?
Answer: To aid a property and casualty agent or broker in transacting
insurance
⩥ All of the following are examples of representation except Answer: It
may be altered after the insurance is effected
⩥ Except as provided by sections 10203.5 and 10203.8 in the CIC, the
insurer shall provide which document to be delivered by the employer to
the employee? Answer: An individual certification of insurance
⩥ 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.
, ⩥ 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
⩥ 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.
2026 EXAM REVIEW SOLVED QUESTIONS
FULL SOLUTION
⩥ Which of the following is TRUE regarding the use of fictitious names
for business? Answer: The actual and fictitious business names must be
registered with the commissioner
⩥ Which is an ACCURATE statement regarding dependent coverage
under a group insurance policy? Answer: The coverage must not exceed
more than 100 percent of the coverage for the insured employee
⩥ According to CIC Section 1711, an organization ceases to exist as an
entity eligible to hold a license EXCEPT Answer: upon the termination
of all contracts
⩥ As long as employment continues, which is the ONLY reason the
validity of a group life insurance policy can be contested? Answer: Non-
payment of premiums after the policy has bee in force for two years.
⩥ All of the following are TRUE about the rules regarding the sale of
life insurance and annuities to seniors age 65 or older EXCEPT Answer:
The agent, broker, or insurer is required to show a copy of their
insurance license with name, address, and phone number when
conducting business in the senior home
,⩥ What is a solicitor employed to do for a policy other than life?
Answer: To aid a property and casualty agent or broker in transacting
insurance
⩥ All of the following are examples of representation except Answer: It
may be altered after the insurance is effected
⩥ Except as provided by sections 10203.5 and 10203.8 in the CIC, the
insurer shall provide which document to be delivered by the employer to
the employee? Answer: An individual certification of insurance
⩥ 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.
, ⩥ 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
⩥ 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.
