CA PSI SITE - LIFE EXAMINATION WITH COMPLETE
QUESTIONS AND ANSWERS 2026-2027
GUARANTEED PASS
what is meant by referring to an insurance policy as a unilateral contract? -
CORRECT ANSWERSonly one party makes a legal enforceable promise
when must insurance records of insurance agents and brokers be made available to the Insuranc
e Commissioner? - CORRECT ANSWERSat all times
any situation that presents the possibility of a loss is known as what -
CORRECT ANSWERSa loss exposure
which of the following information is not required to be communicated in a life insurance contra
ct? - CORRECT ANSWERSpersonal judgement
the direct distribution of insurance utilizes all of the following to promote the sale of insurance E
XCEPT - CORRECT ANSWERStelephone call from an agent
a contract in which one part promises to identify another against loss that arises from an unkno
wn event is - CORRECT ANSWERSan insurance policy
all of the occurrences listed below are examples of an insurable event as defined by the Californi
a insurance code EXCEPT -
CORRECT ANSWERSan insured suffers financial loss in the state lottery
all of the following statements about aleatory contracts are true EXCEPT -
CORRECT ANSWERSthe insured and insurer contribute equally to the contract
,all of the following would be considered unfair trade practices EXCEPT -
CORRECT ANSWERScommitting any act of discrimination whether it be deemed fair or unfair
As authorized by the California Insurance Code, the Insurance Commissioner has provided stand
ards for names used by life insurance agents. Under these standards which, if any, of the followi
ng are automatically acceptable for Mary Brown, a holder of the CLU designation? -
CORRECT ANSWERSMary brown insurance servies
a contract of indemnity is one in which -
CORRECT ANSWERSOne party is restored to the same financial position the party was in before
the loss occurred
In insurance terminology, "indemnity" means - CORRECT ANSWERSmake whole
As defined in the California insurance Code, "insurance" is a - CORRECT ANSWERScontract
What would a person be guilty of who refuses to deliver any books, records, or assets to the co
mmissioner once a seizure order has been executed? - CORRECT ANSWERSa misdemeanor
An agent who is acting as an insurance agent, broker, solicitor, life agent, accident and health, or
bail agent acts in which capacity when handling premiums or return premiums for an insured? -
CORRECT ANSWERSfiduciary
which of the following statement regarding risk is TRUE -
CORRECT ANSWERSonly pure risks are insurable
The purchase of an insurance policy may accomplish all of the following for the insured EXCEPT -
CORRECT ANSWERSthe elimination of risk
, Insureds are entitled to recover an amount NOT greater than the amount of their loss under the
principle of - CORRECT ANSWERSindemnity
what rule is used to determine the importance of a representation? -
CORRECT ANSWERSthe materiality of concealment
the required contents of a policy include all of the following EXCEPT -
CORRECT ANSWERSthe possibility of loss
all of the following are characteristics of reinsurance EXCEPT -
CORRECT ANSWERSincreases the unearned premium reserve
according to the California insurance code, an insurance policy must specify all of the following E
XEPT the - CORRECT ANSWERSfinancial rating of the insurer
All of the following qualify as "background information" as defined in Section 1729.2 of the Calif
ornia Insurance Code, EXCEPT -
CORRECT ANSWERSmisdemeanor charges filed, not resulting in conviction
Loss retention is an effective risk management technique when all of the following conditions ex
ist EXCEPT the - CORRECT ANSWERSprobability of loss is unknown
a situation in which there is a possibility of loss or gain is a - CORRECT ANSWERSspeculative risk
Why is having a large number of similar exposure units important to insurers? -
CORRECT ANSWERSthe greater the number insured, the more accurately the insurer can predict
losses and set appropriate premiums
QUESTIONS AND ANSWERS 2026-2027
GUARANTEED PASS
what is meant by referring to an insurance policy as a unilateral contract? -
CORRECT ANSWERSonly one party makes a legal enforceable promise
when must insurance records of insurance agents and brokers be made available to the Insuranc
e Commissioner? - CORRECT ANSWERSat all times
any situation that presents the possibility of a loss is known as what -
CORRECT ANSWERSa loss exposure
which of the following information is not required to be communicated in a life insurance contra
ct? - CORRECT ANSWERSpersonal judgement
the direct distribution of insurance utilizes all of the following to promote the sale of insurance E
XCEPT - CORRECT ANSWERStelephone call from an agent
a contract in which one part promises to identify another against loss that arises from an unkno
wn event is - CORRECT ANSWERSan insurance policy
all of the occurrences listed below are examples of an insurable event as defined by the Californi
a insurance code EXCEPT -
CORRECT ANSWERSan insured suffers financial loss in the state lottery
all of the following statements about aleatory contracts are true EXCEPT -
CORRECT ANSWERSthe insured and insurer contribute equally to the contract
,all of the following would be considered unfair trade practices EXCEPT -
CORRECT ANSWERScommitting any act of discrimination whether it be deemed fair or unfair
As authorized by the California Insurance Code, the Insurance Commissioner has provided stand
ards for names used by life insurance agents. Under these standards which, if any, of the followi
ng are automatically acceptable for Mary Brown, a holder of the CLU designation? -
CORRECT ANSWERSMary brown insurance servies
a contract of indemnity is one in which -
CORRECT ANSWERSOne party is restored to the same financial position the party was in before
the loss occurred
In insurance terminology, "indemnity" means - CORRECT ANSWERSmake whole
As defined in the California insurance Code, "insurance" is a - CORRECT ANSWERScontract
What would a person be guilty of who refuses to deliver any books, records, or assets to the co
mmissioner once a seizure order has been executed? - CORRECT ANSWERSa misdemeanor
An agent who is acting as an insurance agent, broker, solicitor, life agent, accident and health, or
bail agent acts in which capacity when handling premiums or return premiums for an insured? -
CORRECT ANSWERSfiduciary
which of the following statement regarding risk is TRUE -
CORRECT ANSWERSonly pure risks are insurable
The purchase of an insurance policy may accomplish all of the following for the insured EXCEPT -
CORRECT ANSWERSthe elimination of risk
, Insureds are entitled to recover an amount NOT greater than the amount of their loss under the
principle of - CORRECT ANSWERSindemnity
what rule is used to determine the importance of a representation? -
CORRECT ANSWERSthe materiality of concealment
the required contents of a policy include all of the following EXCEPT -
CORRECT ANSWERSthe possibility of loss
all of the following are characteristics of reinsurance EXCEPT -
CORRECT ANSWERSincreases the unearned premium reserve
according to the California insurance code, an insurance policy must specify all of the following E
XEPT the - CORRECT ANSWERSfinancial rating of the insurer
All of the following qualify as "background information" as defined in Section 1729.2 of the Calif
ornia Insurance Code, EXCEPT -
CORRECT ANSWERSmisdemeanor charges filed, not resulting in conviction
Loss retention is an effective risk management technique when all of the following conditions ex
ist EXCEPT the - CORRECT ANSWERSprobability of loss is unknown
a situation in which there is a possibility of loss or gain is a - CORRECT ANSWERSspeculative risk
Why is having a large number of similar exposure units important to insurers? -
CORRECT ANSWERSthe greater the number insured, the more accurately the insurer can predict
losses and set appropriate premiums
