California PSI - Life Insurance Exam
When is a representation false? when the facts fail to correspond with its assertions or stipulations
Which of the following is TRUE regarding the use of The actual and fictitious business names must be registered with the commissioner
fictitious names for business?
Which is an ACCURATE statement regarding dependent The coverage must not exceed more than 100 percent of the coverage for the
coverage under a group insurance policy? insured employee
According to CIC Section 1711, an organization ceases to upon the termination of all contracts
exist as an entity eligible to hold a license EXCEPT
As long as employment continues, which is the ONLY Non-payment of premiums after the policy has bee in force for two years.
reason the validity of a group life insurance policy can be
contested?
All of the following are TRUE about the rules regarding the The agent, broker, or insurer is required to show a copy of their insurance license
sale of life insurance and annuities to seniors age 65 or with name, address, and phone number when conducting business in the senior
older EXCEPT home
What is a solicitor employed to do for a policy other than To aid a property and casualty agent or broker in transacting insurance
life?
All of the following are examples of representation except It may be altered after the insurance is effected
Except as provided by sections 10203.5 and 10203.8 in An individual certification of insurance
the CIC, the insurer shall provide which document to be
delivered by the employer to the employee?
What is the purpose of creating minimum underwriting To avoid discrimination between individuals in the same rating class who have been
standards for those testing positive for Acquired Immune diagnosed with the conditions of AIDS, ARC or HIV
Deficiency Syndrome, Human Immunodeficiency Virus or
Aids Related Complex?
Which of the following is TRUE regarding continuing Any licensee shall satisfactorily complete 24 hours of instruction prior to license
eduction requirements of an agent or broker? renewal.
Which of the following provisions of free insurance offered It requires a separate charge or fee.
as incentive to purchase or rent property is TRUE?
Which is the maximum fine for a person who transacts $50,000 and/or imprisonment for a period not exceeding one year.
insurance without a valid license?
Which of the following is TRUE regarding non-admitted Acting as an agent for a nonadmitted insurer is considered a misdemeanor.
insurers?
A policy shall specify all of the following EXCEPT The method in which the coverage amount was calculated
Stuvia Study Pack | 2026-2027 Edition
, California PSI - Life Insurance Exam
How long does an employee in a group insurance policy 31 days to use the conversion privilege and begin an individual life insurance policy
have to exercise the conversion privilege after employment
is terminated?
Which group of people is offered additional protection by Survivors of the Holocaust
the Unfair Practices Act that regulates trade practices in
the business of insurance?
Which of the following is TRUE regarding advertisements The printer material must accurately show the relationship between the agent or
or printed matter used by an agent or broker? broker and the agency.
Which circumstances in a pretext interview determine if the When a insured is consulted by a person who hides his true identity on purpose
questions are permissible? when fraud for a claim is suspected.
An "insurance agent" means a person authorized, by and Annuities
on behalf of an insurer, to transact which of the following
class of insurance?
Which form of negotiation is covered under the definition of Negotiations preliminary to execution
"transact" as applied to insurance?
All of the following are to be specified in an insurance The financial rating of the insured.
policy EXCEPT
How can a licensee surrender any license for cancellation? By submitted written notice or by delivering the license to the commissioner
How is an insurance policy defined? The written instrument, in which a contract of insurance is set forth
When may a surplus line broker solicit and place insurance If the same insurance coverage cannot be produced from an admitted insurer.
for a home state insured with a nonadmitted insurer?
How does an "admitted" person differ from an "non- An "admitted" person has the right to transact insurance business within the state,
admitted" person, as it pertains to insurance? while a "non admitted" person is not entitled to this action.
All of the following conditions provide a basis for group life amounts of insurance may be selected as needed per individuals personal need.
insurance coverage EXCEPT
Which is an INACCURATE statement regarding The proposed insured must pay for the cost of the testing.
underwriting based on genetic testing?
Which of the following can the insurer do if the insured Rescind the contract
intentionally conceal or misrepresents a material fact
concerning any coverage part?
Which of the following is TRUE of the conversion privileges The option to name a new beneficiary can be exercised by the owner.
for the insured in group life insurance?
Stuvia Study Pack | 2026-2027 Edition
When is a representation false? when the facts fail to correspond with its assertions or stipulations
Which of the following is TRUE regarding the use of The actual and fictitious business names must be registered with the commissioner
fictitious names for business?
Which is an ACCURATE statement regarding dependent The coverage must not exceed more than 100 percent of the coverage for the
coverage under a group insurance policy? insured employee
According to CIC Section 1711, an organization ceases to upon the termination of all contracts
exist as an entity eligible to hold a license EXCEPT
As long as employment continues, which is the ONLY Non-payment of premiums after the policy has bee in force for two years.
reason the validity of a group life insurance policy can be
contested?
All of the following are TRUE about the rules regarding the The agent, broker, or insurer is required to show a copy of their insurance license
sale of life insurance and annuities to seniors age 65 or with name, address, and phone number when conducting business in the senior
older EXCEPT home
What is a solicitor employed to do for a policy other than To aid a property and casualty agent or broker in transacting insurance
life?
All of the following are examples of representation except It may be altered after the insurance is effected
Except as provided by sections 10203.5 and 10203.8 in An individual certification of insurance
the CIC, the insurer shall provide which document to be
delivered by the employer to the employee?
What is the purpose of creating minimum underwriting To avoid discrimination between individuals in the same rating class who have been
standards for those testing positive for Acquired Immune diagnosed with the conditions of AIDS, ARC or HIV
Deficiency Syndrome, Human Immunodeficiency Virus or
Aids Related Complex?
Which of the following is TRUE regarding continuing Any licensee shall satisfactorily complete 24 hours of instruction prior to license
eduction requirements of an agent or broker? renewal.
Which of the following provisions of free insurance offered It requires a separate charge or fee.
as incentive to purchase or rent property is TRUE?
Which is the maximum fine for a person who transacts $50,000 and/or imprisonment for a period not exceeding one year.
insurance without a valid license?
Which of the following is TRUE regarding non-admitted Acting as an agent for a nonadmitted insurer is considered a misdemeanor.
insurers?
A policy shall specify all of the following EXCEPT The method in which the coverage amount was calculated
Stuvia Study Pack | 2026-2027 Edition
, California PSI - Life Insurance Exam
How long does an employee in a group insurance policy 31 days to use the conversion privilege and begin an individual life insurance policy
have to exercise the conversion privilege after employment
is terminated?
Which group of people is offered additional protection by Survivors of the Holocaust
the Unfair Practices Act that regulates trade practices in
the business of insurance?
Which of the following is TRUE regarding advertisements The printer material must accurately show the relationship between the agent or
or printed matter used by an agent or broker? broker and the agency.
Which circumstances in a pretext interview determine if the When a insured is consulted by a person who hides his true identity on purpose
questions are permissible? when fraud for a claim is suspected.
An "insurance agent" means a person authorized, by and Annuities
on behalf of an insurer, to transact which of the following
class of insurance?
Which form of negotiation is covered under the definition of Negotiations preliminary to execution
"transact" as applied to insurance?
All of the following are to be specified in an insurance The financial rating of the insured.
policy EXCEPT
How can a licensee surrender any license for cancellation? By submitted written notice or by delivering the license to the commissioner
How is an insurance policy defined? The written instrument, in which a contract of insurance is set forth
When may a surplus line broker solicit and place insurance If the same insurance coverage cannot be produced from an admitted insurer.
for a home state insured with a nonadmitted insurer?
How does an "admitted" person differ from an "non- An "admitted" person has the right to transact insurance business within the state,
admitted" person, as it pertains to insurance? while a "non admitted" person is not entitled to this action.
All of the following conditions provide a basis for group life amounts of insurance may be selected as needed per individuals personal need.
insurance coverage EXCEPT
Which is an INACCURATE statement regarding The proposed insured must pay for the cost of the testing.
underwriting based on genetic testing?
Which of the following can the insurer do if the insured Rescind the contract
intentionally conceal or misrepresents a material fact
concerning any coverage part?
Which of the following is TRUE of the conversion privileges The option to name a new beneficiary can be exercised by the owner.
for the insured in group life insurance?
Stuvia Study Pack | 2026-2027 Edition
