120 EXAM QUESTIONS CA PSI SITE LIFE, ACCIDENT AND
HEALTH AGENT EXAMINATION 2026/2027 ||
COMPREHENSIVE CALIFORNIA INSURANCE LICENSE
EXAM PREPARATION WITH UPDATED STATE
REGULATIONS, POLICY CONCEPTS, AND ETHICS REVIEW ||
REAL PSI EXAM-STYLE QUESTIONS WITH VERIFIED
DETAILED ACCURATE ANSWERS LATEST EDITION || ELITE
A+ PREMIUM QUALITY GUARANTEED
In the California Insurance Code there is a definition that reads, in short, "....a
person who, for a fee, offers to advise any insured having any interest in life or
disability insurance contracts..." This is the definition of :
A. An insurance broker paid on a fee-for-service
B. A solicitor
C. A life and disability analyst - THE CORRECT ANSWER - C
Disability income insurance pays a weekly or monthly income to replace a
portion of the one's lost salary due to an inability to work. When a disability
income insurance application is submitted, what reason might the underwritting
department use to reject it ?
A. Insurers are willing to only accept applications with extremely small risks
exposure.
B. Underwriters have to reject a certain number of applications per a certain
number of approved applications
C. Disability insurers have to eliminate applications that seem likely to have
losses much more frequently or much more severely than what the insurer's rates
anticipate.
D. None of the above. - THE CORRECT ANSWER - C
When any change in residence address occurs, every licensee and every applicant
for a license must notify the Commissioner _______________. (Select the most
correct response)
A. Within 6 months after the move has taken place
B. Within 6 months before the license is to expire
C. 30 days before submitting a continuing education certificate.
D. Immediately - THE CORRECT ANSWER - Immediately
,To protect (subject to statutory limitations) life and health owners and insureds in
the event of impairment or insolvency of a member insurer. This is a description
of:
A. Medi-Cal
B. The California Life and Health Insurance Guarantee Association
C. OBRA
D. None of the above - THE CORRECT ANSWER - The California Life
and Health Insurance Guarantee Association
Admitted Insurance Company vs. Non-Admitted Insurance Company - THE
CORRECT ANSWER - An admitted insurance company is authorized to
transact insurance in California because it has a Certificate of Authority granted
by the California Department of Insurance (CDI)
A non-admitted insurance company is not authorized to transact insurance in
California because of failing to comply with California requirements or did not
seek admission
Pure Risk vs. Speculative Risk - THE CORRECT ANSWER - Pure risks are
insurable but Speculative risks are not
Pure Risks - A possibility of loss, no loss, or gain
Pure Risk - A possibility of loss or no loss; there is no possibility for gain
Contract of Adhesion - THE CORRECT ANSWER - One party writes the
contract without inout from the other party on a "take-it-or-leave-it" basis
Aleatory Contract - THE CORRECT ANSWER - The exchange of value is
unequal.
Insured's premium payment is less than the potential benefit to be received in the
event of a loss.
Indemnity Contract - THE CORRECT ANSWER - An agreement to pay on
behalf of another party under specified circumstances
Unilateral Contract - THE CORRECT ANSWER - Only one party is legally
bound to the contractual obligations after the premium is paid to the insurer
, Only the insurer makes a promise of future performance, and only the insurer can
be charged with breach of contract
4 elements of a valid contract - THE CORRECT ANSWER - 1) Competent
Parties
2) Legal Purpose
3) Agreement (offer and acceptance)
4) Consideration
Preferred Risks vs Standard Risks - THE CORRECT ANSWER - Standard
Risks are individuals who have the same health, habits, sex/gender, and
occupational characteristics as those reflected in the mortality table
Preferred Risks are individuals who meet certain requirements and qualify for
lower premiums because of ideal health, height and weight. Individuals in this
category have a longer than average life expectancy
Human Life Value Approach vs. Needs Analysis Approach - THE CORRECT
ANSWER - Human Life Value approach is a measure of the projected future
earnings and services of a person at risk in the event of a premature death.
The objective is to provide the proper amount of coverage as determined by the
value of the individual to his/her dependents using the following factors:
- The individual's age and gender
- The individual's occupation, annual wage, and planned retirement age
- Inflation
Needs Analysis Approach determines a need for coverage upon the premature
death of an individual.
It always assumes the death of the individual to be immediate and factors the
following steps into arriving at the proper amount of coverage needed:
- Calculate all financial needs caused by immediate death, including debts,
medical bills, and final expenses
- Provide lifetime income to the spouse
- Pay off mortgage or other debts
- Provide funds for children's education
- Subtracts any assets available to fund financial needs after death (such as
retirement plan, other insurance, liquid investments, separate savings)
HEALTH AGENT EXAMINATION 2026/2027 ||
COMPREHENSIVE CALIFORNIA INSURANCE LICENSE
EXAM PREPARATION WITH UPDATED STATE
REGULATIONS, POLICY CONCEPTS, AND ETHICS REVIEW ||
REAL PSI EXAM-STYLE QUESTIONS WITH VERIFIED
DETAILED ACCURATE ANSWERS LATEST EDITION || ELITE
A+ PREMIUM QUALITY GUARANTEED
In the California Insurance Code there is a definition that reads, in short, "....a
person who, for a fee, offers to advise any insured having any interest in life or
disability insurance contracts..." This is the definition of :
A. An insurance broker paid on a fee-for-service
B. A solicitor
C. A life and disability analyst - THE CORRECT ANSWER - C
Disability income insurance pays a weekly or monthly income to replace a
portion of the one's lost salary due to an inability to work. When a disability
income insurance application is submitted, what reason might the underwritting
department use to reject it ?
A. Insurers are willing to only accept applications with extremely small risks
exposure.
B. Underwriters have to reject a certain number of applications per a certain
number of approved applications
C. Disability insurers have to eliminate applications that seem likely to have
losses much more frequently or much more severely than what the insurer's rates
anticipate.
D. None of the above. - THE CORRECT ANSWER - C
When any change in residence address occurs, every licensee and every applicant
for a license must notify the Commissioner _______________. (Select the most
correct response)
A. Within 6 months after the move has taken place
B. Within 6 months before the license is to expire
C. 30 days before submitting a continuing education certificate.
D. Immediately - THE CORRECT ANSWER - Immediately
,To protect (subject to statutory limitations) life and health owners and insureds in
the event of impairment or insolvency of a member insurer. This is a description
of:
A. Medi-Cal
B. The California Life and Health Insurance Guarantee Association
C. OBRA
D. None of the above - THE CORRECT ANSWER - The California Life
and Health Insurance Guarantee Association
Admitted Insurance Company vs. Non-Admitted Insurance Company - THE
CORRECT ANSWER - An admitted insurance company is authorized to
transact insurance in California because it has a Certificate of Authority granted
by the California Department of Insurance (CDI)
A non-admitted insurance company is not authorized to transact insurance in
California because of failing to comply with California requirements or did not
seek admission
Pure Risk vs. Speculative Risk - THE CORRECT ANSWER - Pure risks are
insurable but Speculative risks are not
Pure Risks - A possibility of loss, no loss, or gain
Pure Risk - A possibility of loss or no loss; there is no possibility for gain
Contract of Adhesion - THE CORRECT ANSWER - One party writes the
contract without inout from the other party on a "take-it-or-leave-it" basis
Aleatory Contract - THE CORRECT ANSWER - The exchange of value is
unequal.
Insured's premium payment is less than the potential benefit to be received in the
event of a loss.
Indemnity Contract - THE CORRECT ANSWER - An agreement to pay on
behalf of another party under specified circumstances
Unilateral Contract - THE CORRECT ANSWER - Only one party is legally
bound to the contractual obligations after the premium is paid to the insurer
, Only the insurer makes a promise of future performance, and only the insurer can
be charged with breach of contract
4 elements of a valid contract - THE CORRECT ANSWER - 1) Competent
Parties
2) Legal Purpose
3) Agreement (offer and acceptance)
4) Consideration
Preferred Risks vs Standard Risks - THE CORRECT ANSWER - Standard
Risks are individuals who have the same health, habits, sex/gender, and
occupational characteristics as those reflected in the mortality table
Preferred Risks are individuals who meet certain requirements and qualify for
lower premiums because of ideal health, height and weight. Individuals in this
category have a longer than average life expectancy
Human Life Value Approach vs. Needs Analysis Approach - THE CORRECT
ANSWER - Human Life Value approach is a measure of the projected future
earnings and services of a person at risk in the event of a premature death.
The objective is to provide the proper amount of coverage as determined by the
value of the individual to his/her dependents using the following factors:
- The individual's age and gender
- The individual's occupation, annual wage, and planned retirement age
- Inflation
Needs Analysis Approach determines a need for coverage upon the premature
death of an individual.
It always assumes the death of the individual to be immediate and factors the
following steps into arriving at the proper amount of coverage needed:
- Calculate all financial needs caused by immediate death, including debts,
medical bills, and final expenses
- Provide lifetime income to the spouse
- Pay off mortgage or other debts
- Provide funds for children's education
- Subtracts any assets available to fund financial needs after death (such as
retirement plan, other insurance, liquid investments, separate savings)
