CALIFORNIA PSI LIFE INSURANCE EXAM III
2026 COMPLETE QUESTION SET AND
CORRECT ANSWERS GRADED A PLUS
◉ 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?
2026 COMPLETE QUESTION SET AND
CORRECT ANSWERS GRADED A PLUS
◉ 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?
