CA LIFE EXAM - PSI EXAM (updated
2026) Questions & Answers | Latest
Already Graded A+ UPDATE 2025|2026
(complete solutions) ASSURED
SUCCESS/GRADED A+!!!
A participating company is also referred to as which type of insurer? - ( answers)Mutual insurer
An insurer owned by its policyholders, is called a - ( answers)Mutual insurer
What is a participating life insurance policy? - ( answers)Contract that allows the policyowner to receive
a share of surplus in the form of policy dividends
analytical skills.________________________________________2. Law Exams2.1. Overview of Law EducationLaw education provides students with the knowledge of legal principles, case law, legal frameworks, and ethical
issues. It prepares students for legal practice, to business exams, often requiring students to demonstrate
An insurer enter into a contract with a third-party to ensure itself against losses from insurance policies
it issues. What is this agreement called? - ( answers)Reinsurance
John owns an insurance company that gives him the right to share and then sure surplus. What kind of
policy is this? - ( answers)Participating
Which of the following is not a characteristic of reinsurance? - ( answers)Increases the unearned
premium reserved
Which of the following is not a benefit of insurance? - ( answers)Losses due to fraud are eliminated
When a mutual insurer becomes a stock company, the process is called - ( answers)Demutualization
Which of the following is a contract that involves one party which indemnifies another one a loss arises
from an unknown event? - ( answers)Insurance policy
, 2
Which of the following is an insurer established by a parent company's loss exposure's? - (
answers)Captive insurers
Which of the following is not considered to be a definition for the term "loss"? - ( answers)Probability
that an event will occur
Which of the following is not considered a definition of a risk? - ( answers)The cause of loss
Which of the following best describes the statement; " the more times, and event is repeated, the more
predictable the outcome becomes"? - ( answers)Law of large numbers
Which of the following would not be accomplished with the purchase of an insurance policy? - (
answers)Risk is eliminated
Which of the following is a situation where there is a possibility of either a loss or gain? - (
answers)Speculative risk
analytical skills.________________________________________2. Law Exams2.1. Overview of Law EducationLaw education provides students with the knowledge of legal principles, case law, legal frameworks, and ethical
issues. It prepares students for legal practice, to business exams, often requiring students to demonstrate
Which of the following is any situation that presents the possibility of a loss? - ( answers)Loss
An insurer having a large number of similar exposure units is considered important because: - (
answers)the greater the number insured, the more accurately that is her can predict losses & set
appropriate premiums
Which of these statements correctly describes risks? - ( answers)Pure risk is the only insurable risk
Which type of risk is gambling? - ( answers)Speculative risk
Moral hazard is described as the: - ( answers)increased chance of a loss because of an insured's
dishonest tendencies
, 3
All of the following circumstances must be met for los retention to be an effective, risk management
technique, except - ( answers)Probability of loss is unknown
All of the following circumstances must be met for lost attention to be an effective risk management
technique, except - ( answers)Probability of loss is unknown
After a policy has lapsed, which provision allows the insurer to continue coverage - (
answers)Reinstatement provision
In a life insurance policy, the entire contract consists of - ( answers)policy and attached application
analytical skills.________________________________________2. Law Exams2.1. Overview of Law EducationLaw education provides students with the knowledge of legal principles, case law, legal frameworks, and ethical
issues. It prepares students for legal practice, to business exams, often requiring students to demonstrate
Which policy provision protects the policy owner from unintentional lapse of the contract? - (
answers)Grace period
Which of the following is not a common life insurance policy later? - ( answers)Extended term
What an accidental death benefit is added to a whole life policy, how does this affect the policies cash
value? - ( answers)Policies, cash value is not affected
A life insurance policy can be surrendered for its cash value under which policy provision? - (
answers)Nonforfeiture options
Which of the following does a policy owner not have the right to change? - ( answers)Dividend schedule
Which statement is true regarding policy dividends? - ( answers)A dividend option is selected by the
insured at the time of the policy purchase
2026) Questions & Answers | Latest
Already Graded A+ UPDATE 2025|2026
(complete solutions) ASSURED
SUCCESS/GRADED A+!!!
A participating company is also referred to as which type of insurer? - ( answers)Mutual insurer
An insurer owned by its policyholders, is called a - ( answers)Mutual insurer
What is a participating life insurance policy? - ( answers)Contract that allows the policyowner to receive
a share of surplus in the form of policy dividends
analytical skills.________________________________________2. Law Exams2.1. Overview of Law EducationLaw education provides students with the knowledge of legal principles, case law, legal frameworks, and ethical
issues. It prepares students for legal practice, to business exams, often requiring students to demonstrate
An insurer enter into a contract with a third-party to ensure itself against losses from insurance policies
it issues. What is this agreement called? - ( answers)Reinsurance
John owns an insurance company that gives him the right to share and then sure surplus. What kind of
policy is this? - ( answers)Participating
Which of the following is not a characteristic of reinsurance? - ( answers)Increases the unearned
premium reserved
Which of the following is not a benefit of insurance? - ( answers)Losses due to fraud are eliminated
When a mutual insurer becomes a stock company, the process is called - ( answers)Demutualization
Which of the following is a contract that involves one party which indemnifies another one a loss arises
from an unknown event? - ( answers)Insurance policy
, 2
Which of the following is an insurer established by a parent company's loss exposure's? - (
answers)Captive insurers
Which of the following is not considered to be a definition for the term "loss"? - ( answers)Probability
that an event will occur
Which of the following is not considered a definition of a risk? - ( answers)The cause of loss
Which of the following best describes the statement; " the more times, and event is repeated, the more
predictable the outcome becomes"? - ( answers)Law of large numbers
Which of the following would not be accomplished with the purchase of an insurance policy? - (
answers)Risk is eliminated
Which of the following is a situation where there is a possibility of either a loss or gain? - (
answers)Speculative risk
analytical skills.________________________________________2. Law Exams2.1. Overview of Law EducationLaw education provides students with the knowledge of legal principles, case law, legal frameworks, and ethical
issues. It prepares students for legal practice, to business exams, often requiring students to demonstrate
Which of the following is any situation that presents the possibility of a loss? - ( answers)Loss
An insurer having a large number of similar exposure units is considered important because: - (
answers)the greater the number insured, the more accurately that is her can predict losses & set
appropriate premiums
Which of these statements correctly describes risks? - ( answers)Pure risk is the only insurable risk
Which type of risk is gambling? - ( answers)Speculative risk
Moral hazard is described as the: - ( answers)increased chance of a loss because of an insured's
dishonest tendencies
, 3
All of the following circumstances must be met for los retention to be an effective, risk management
technique, except - ( answers)Probability of loss is unknown
All of the following circumstances must be met for lost attention to be an effective risk management
technique, except - ( answers)Probability of loss is unknown
After a policy has lapsed, which provision allows the insurer to continue coverage - (
answers)Reinstatement provision
In a life insurance policy, the entire contract consists of - ( answers)policy and attached application
analytical skills.________________________________________2. Law Exams2.1. Overview of Law EducationLaw education provides students with the knowledge of legal principles, case law, legal frameworks, and ethical
issues. It prepares students for legal practice, to business exams, often requiring students to demonstrate
Which policy provision protects the policy owner from unintentional lapse of the contract? - (
answers)Grace period
Which of the following is not a common life insurance policy later? - ( answers)Extended term
What an accidental death benefit is added to a whole life policy, how does this affect the policies cash
value? - ( answers)Policies, cash value is not affected
A life insurance policy can be surrendered for its cash value under which policy provision? - (
answers)Nonforfeiture options
Which of the following does a policy owner not have the right to change? - ( answers)Dividend schedule
Which statement is true regarding policy dividends? - ( answers)A dividend option is selected by the
insured at the time of the policy purchase
