CA PSI SITE - LIFE, ACCIDENT AND HEALTH AGENT EXAMINATION
(LIFE AGENT) LATEST ACTUAL EXAM |COMPLETE QUESTIONS
WITH EXPERT SOLUTIONS| 2026 LATEST UPDATED| A+
What is considered to be the primary reason for buying life insurance?
Provide death benefits
Provide living benefits
Provide money for college
Provide money for retirement - (answer)Provide death benefits
Which of the following is NOT considered advertising?
An illustration
A sales presentation
Direct mailing from an agency
A rating from a rating service company, such as A.M. Best - (answer)A rating from a rating
service company, such as A.M. Best
A type of insurer that is owned by its policyowners is called
,stock
domestic
in-house
mutual - (answer)mutual
ABC Insurance Company transfers part of their risk to XYZ Insurance Company. This situation
is called
conservation
reciprocity
reinsurance
risk transfer - (answer)reinsurance
What kind of life insurance policy issued by a mutual insurer provides a return of divisible
surplus?
straight life insurance policy
nonparticipating life insurance policy
,participating life insurance policy
divisible surplus life insurance policy - (answer)participating life insurance policy
A nonparticipating policy will
provide tax advantages
provide a return of premium
give policyowners special privileges
not pay dividends - (answer)not pay dividends
Karen is a producer who has obtained personal information about a client without having a
legitimate reason to do so. Under the McCarran-Ferguson Act, what is the minimum penalty for
this?
$15,000
$0
$10,000
$5,000 - (answer)$10,000
, The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT
political organizations
surveys
charities
insurance sales calls - (answer)insurance sales calls
The Fair Credit and Reporting Act's main purpose is to
protect insurers from an applicant's misrepresentation
assist in the underwriting of insurance policies
assist an insurer in determining an applicant's creditworthiness
protect consumers with guidelines regarding credit reporting and distribution - (answer)protect
consumers with guidelines regarding credit reporting and distribution
Why are dividends from a mutual insurer not subject to taxation?
Because dividends are considered to be a return of premium
Because dividends are already subject to capital gains
(LIFE AGENT) LATEST ACTUAL EXAM |COMPLETE QUESTIONS
WITH EXPERT SOLUTIONS| 2026 LATEST UPDATED| A+
What is considered to be the primary reason for buying life insurance?
Provide death benefits
Provide living benefits
Provide money for college
Provide money for retirement - (answer)Provide death benefits
Which of the following is NOT considered advertising?
An illustration
A sales presentation
Direct mailing from an agency
A rating from a rating service company, such as A.M. Best - (answer)A rating from a rating
service company, such as A.M. Best
A type of insurer that is owned by its policyowners is called
,stock
domestic
in-house
mutual - (answer)mutual
ABC Insurance Company transfers part of their risk to XYZ Insurance Company. This situation
is called
conservation
reciprocity
reinsurance
risk transfer - (answer)reinsurance
What kind of life insurance policy issued by a mutual insurer provides a return of divisible
surplus?
straight life insurance policy
nonparticipating life insurance policy
,participating life insurance policy
divisible surplus life insurance policy - (answer)participating life insurance policy
A nonparticipating policy will
provide tax advantages
provide a return of premium
give policyowners special privileges
not pay dividends - (answer)not pay dividends
Karen is a producer who has obtained personal information about a client without having a
legitimate reason to do so. Under the McCarran-Ferguson Act, what is the minimum penalty for
this?
$15,000
$0
$10,000
$5,000 - (answer)$10,000
, The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT
political organizations
surveys
charities
insurance sales calls - (answer)insurance sales calls
The Fair Credit and Reporting Act's main purpose is to
protect insurers from an applicant's misrepresentation
assist in the underwriting of insurance policies
assist an insurer in determining an applicant's creditworthiness
protect consumers with guidelines regarding credit reporting and distribution - (answer)protect
consumers with guidelines regarding credit reporting and distribution
Why are dividends from a mutual insurer not subject to taxation?
Because dividends are considered to be a return of premium
Because dividends are already subject to capital gains
