PSI - LIFE, ACCIDENT, AND HEALTH –
FULL EXAM: QUESTIONS WITH VERIFIED
ANSWERS | LATEST UPDATE 2026
What happens under a misstatement of age clause on a disability policy?
1.
The policy would be terminated and all premiums would be returned to the policy owner.
2.
The policy would be terminated and all premiums would be retained by the insurance company.
3.
All amounts payable under this policy shall be what the premium originally would have
purchased and been paid at the correct age.
4.
Prior to any benefits being payable, the insured shall rate and pay the difference in premiums
based upon his correct age - CORRECT ANSWER -All amounts payable under this policy shall be
what the premium originally would have purchased and been paid at the correct age.
Whether admitted or nonadmitted, how does a "foreign" insurer differ from an "alien" or
"domestic" insurer?
1.
A "foreign" insurer is organized under the laws of another country.
2.
A "foreign" insurer is prohibited from transacting insurance with the State of California.
3.
A "foreign" insurer is organized under the laws of another state within the United States.
4.
,A "foreign" insurer transacts business in multiple languages not spoken in the United States. -
CORRECT ANSWER -A "foreign" insurer is organized under the laws of another state within the
United States.
Which of the following is TRUE regarding nonadmitted insurers?
1.
A felony is committed by the agent in the state of a nonadmitted insurer.
2.
Acting as an agent for a nonadmitted insurer is considered a misdemeanor.
3.
The agent shall pay $1,000 in addition to any fees involving the commission of a felony.
4.
Specific penalties shall be determined by the Insurance Commissioner on a case by case basis. -
CORRECT ANSWER -Acting as an agent for a nonadmitted insurer is considered a misdemeanor.
What happens if an owner requests an immediate investment of monies in a variable annuity
policy be returned during the 30 day cancellation period?
1.
The owner shall forfeit any money invested.
2.
The owner shall receive the market value at the time of the cancellation.
3.
The owner shall receive a refund of premium but nothing earned during cancellation period.
4.
The owner shall receive a full refund of premium, plus the market value, minus any commission
fees. - CORRECT ANSWER -The owner shall receive the market value at the time of the
cancellation.
,Can any life insurer issue group life insurance with premium rates less than the usual rates for
such insurance?
1.
Yes, when the Department of Insurance has requested they do so.
2.
Yes, if the insurer has filed an exemption form to do so.
3.
Yes, they may do so on any group plan, with or without annuities.
4.
No, there are no circumstances when this is allowed. - CORRECT ANSWER -Yes, they may do so
on any group plan, with or without annuities
Which of the following is TRUE regarding the use of fictitious names for business?
1.
Fictitious names do not need to be reported like actual personal or business names.
2.
The actual and fictitious business names must be registered with the commissioner.
3.
The licensee may register 3 or more fictitious names in addition to their real name the first year.
4.
A licensee may continue to use for 10 days a fictitious name prohibited by the commissioner
until notification. - CORRECT ANSWER -The actual and fictitious business names must be
registered with the commissioner
Which is TRUE regarding a life and health agent who has not been specifically appointed by the
insurer?
1.
, The insurer is obliged to accept the application for underwriting from the life agent.
2.
If a policy is issued, the agent is required to forfeit any commission unless appointed.
3.
The insurer is required to report the agent appointment within 21 days of the policy issue.
4.
If a policy is issued, the insurer is considered to have authorized the agent to act on its behalf. -
CORRECT ANSWER -If a policy is issued, the insurer is considered to have authorized the agent
to act on its behalf
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?
1.
A copy of the insurance policy.
2.
An individual certificate of insurance.
3.
A vestment schedule showing what the policy will be worth.
4.
An individual packet including the application and the policy. - CORRECT ANSWER -An individual
certificate of insurance.
After what time period is the policy considered to have been delivered in an acceptable way if
premiums have been paid?
1.
after 6 months if the premiums have been paid
2.
FULL EXAM: QUESTIONS WITH VERIFIED
ANSWERS | LATEST UPDATE 2026
What happens under a misstatement of age clause on a disability policy?
1.
The policy would be terminated and all premiums would be returned to the policy owner.
2.
The policy would be terminated and all premiums would be retained by the insurance company.
3.
All amounts payable under this policy shall be what the premium originally would have
purchased and been paid at the correct age.
4.
Prior to any benefits being payable, the insured shall rate and pay the difference in premiums
based upon his correct age - CORRECT ANSWER -All amounts payable under this policy shall be
what the premium originally would have purchased and been paid at the correct age.
Whether admitted or nonadmitted, how does a "foreign" insurer differ from an "alien" or
"domestic" insurer?
1.
A "foreign" insurer is organized under the laws of another country.
2.
A "foreign" insurer is prohibited from transacting insurance with the State of California.
3.
A "foreign" insurer is organized under the laws of another state within the United States.
4.
,A "foreign" insurer transacts business in multiple languages not spoken in the United States. -
CORRECT ANSWER -A "foreign" insurer is organized under the laws of another state within the
United States.
Which of the following is TRUE regarding nonadmitted insurers?
1.
A felony is committed by the agent in the state of a nonadmitted insurer.
2.
Acting as an agent for a nonadmitted insurer is considered a misdemeanor.
3.
The agent shall pay $1,000 in addition to any fees involving the commission of a felony.
4.
Specific penalties shall be determined by the Insurance Commissioner on a case by case basis. -
CORRECT ANSWER -Acting as an agent for a nonadmitted insurer is considered a misdemeanor.
What happens if an owner requests an immediate investment of monies in a variable annuity
policy be returned during the 30 day cancellation period?
1.
The owner shall forfeit any money invested.
2.
The owner shall receive the market value at the time of the cancellation.
3.
The owner shall receive a refund of premium but nothing earned during cancellation period.
4.
The owner shall receive a full refund of premium, plus the market value, minus any commission
fees. - CORRECT ANSWER -The owner shall receive the market value at the time of the
cancellation.
,Can any life insurer issue group life insurance with premium rates less than the usual rates for
such insurance?
1.
Yes, when the Department of Insurance has requested they do so.
2.
Yes, if the insurer has filed an exemption form to do so.
3.
Yes, they may do so on any group plan, with or without annuities.
4.
No, there are no circumstances when this is allowed. - CORRECT ANSWER -Yes, they may do so
on any group plan, with or without annuities
Which of the following is TRUE regarding the use of fictitious names for business?
1.
Fictitious names do not need to be reported like actual personal or business names.
2.
The actual and fictitious business names must be registered with the commissioner.
3.
The licensee may register 3 or more fictitious names in addition to their real name the first year.
4.
A licensee may continue to use for 10 days a fictitious name prohibited by the commissioner
until notification. - CORRECT ANSWER -The actual and fictitious business names must be
registered with the commissioner
Which is TRUE regarding a life and health agent who has not been specifically appointed by the
insurer?
1.
, The insurer is obliged to accept the application for underwriting from the life agent.
2.
If a policy is issued, the agent is required to forfeit any commission unless appointed.
3.
The insurer is required to report the agent appointment within 21 days of the policy issue.
4.
If a policy is issued, the insurer is considered to have authorized the agent to act on its behalf. -
CORRECT ANSWER -If a policy is issued, the insurer is considered to have authorized the agent
to act on its behalf
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?
1.
A copy of the insurance policy.
2.
An individual certificate of insurance.
3.
A vestment schedule showing what the policy will be worth.
4.
An individual packet including the application and the policy. - CORRECT ANSWER -An individual
certificate of insurance.
After what time period is the policy considered to have been delivered in an acceptable way if
premiums have been paid?
1.
after 6 months if the premiums have been paid
2.
