CA PSI Site - Life, Accident and Health Agent Examination (Life Agent) Questions and Answers Latest 2024

Admitted Insurance Company vs. Non-Admitted Insurance Company - CORRECT ANSWER-An admitted insurance company is authorized to transact insurance in California because it has a Certificate of Authority granted by the California Department of Insurance (CDI) A non-admitted insurance company is not authorized to transact insurance in California because of failing to comply with California requirements or did not seek admission Pure Risk vs. Speculative Risk - CORRECT ANSWER-Pure risks are insurable but Speculative risks are not Pure Risks - A possibility of loss, no loss, or gain Pure Risk - A possibility of loss or no loss; there is no possibility for gain Contract of Adhesion - CORRECT ANSWER-One party writes the contract without inout from the other party on a "take-it-or-leave-it" basis Aleatory Contract - CORRECT ANSWER-The exchange of value is unequal. Insured's premium payment is less than the potential benefit to be received in the event of a loss. Indemnity Contract - CORRECT ANSWER-An agreement to pay on behalf of another party under specified circumstances Unilateral Contract - CORRECT ANSWER-Only one party is legally bound to the contractual obligations