CA LIFE EXAM - PSI
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1. A participating company is also referred to as which Mutual insurer
type of insurer?
2. An insurer owned by its policyholders, is called a Mutual insurer
3. What is a participating life insurance policy? Contract that allows the
policyowner to receive a
share of surplus in the
form of policy dividends
4. An insurer enter into a contract with a third-party to Reinsurance
ensure itself against losses from insurance policies it
issues. What is this agreement called?
5. John owns an insurance company that gives him the Participating
right to share and then sure surplus. What kind of
policy is this?
6. Which of the following is not a characteristic of rein- Increases the unearned
surance? premium reserved
7. Which of the following is not a benefit of insurance? Losses due to fraud are
eliminated
8. When a mutual insurer becomes a stock company, the Demutualization
process is called
9. Which of the following is a contract that involves one Insurance policy
party which indemnifies another one a loss arises
from an unknown event?
10. Which of the following is an insurer established by a Captive insurers
parent company's loss exposure's?
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11. Which of the following is not considered to be a defi- Probability that an event
nition for the term "loss"? will occur
12. Which of the following is not considered a definition The cause of loss
of a risk?
13. Which of the following best describes the statement; Law of large numbers
" the more times, and event is repeated, the more
predictable the outcome becomes"?
14. Which of the following would not be accomplished Risk is eliminated
with the purchase of an insurance policy?
15. Which of the following is a situation where there is a Speculative risk
possibility of either a loss or gain?
16. Which of the following is any situation that presents Loss
the possibility of a loss?
17. An insurer having a large number of similar exposure the greater the number
units is considered important because: insured, the more accu-
rately that is her can pre-
dict losses & set appropri-
ate premiums
18. Which of these statements correctly describes risks? Pure risk is the only insur-
able risk
19. Which type of risk is gambling? Speculative risk
20. Moral hazard is described as the: increased chance of a loss
because of an insured's
dishonest tendencies
, CA LIFE EXAM - PSI
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21. All of the following circumstances must be met for los Probability of loss is un-
retention to be an effective, risk management tech- known
nique, except
22. All of the following circumstances must be met for lost Probability of loss is un-
attention to be an effective risk management tech- known
nique, except
23. After a policy has lapsed, which provision allows the Reinstatement provision
insurer to continue coverage
24. In a life insurance policy, the entire contract consists policy and attached appli-
of cation
25. Which policy provision protects the policy owner from Grace period
unintentional lapse of the contract?
26. Which of the following is not a common life insurance Extended term
policy later?
27. What an accidental death benefit is added to a whole Policies, cash value is not
life policy, how does this affect the policies cash value? affected
28. A life insurance policy can be surrendered for its cash Nonforfeiture options
value under which policy provision?
29. Which of the following does a policy owner not have Dividend schedule
the right to change?
30. Which statement is true regarding policy dividends? A dividend option is se-
lected by the insured at
the time of the policy pur-
chase
Study online at https://quizlet.com/_e6ouml
1. A participating company is also referred to as which Mutual insurer
type of insurer?
2. An insurer owned by its policyholders, is called a Mutual insurer
3. What is a participating life insurance policy? Contract that allows the
policyowner to receive a
share of surplus in the
form of policy dividends
4. An insurer enter into a contract with a third-party to Reinsurance
ensure itself against losses from insurance policies it
issues. What is this agreement called?
5. John owns an insurance company that gives him the Participating
right to share and then sure surplus. What kind of
policy is this?
6. Which of the following is not a characteristic of rein- Increases the unearned
surance? premium reserved
7. Which of the following is not a benefit of insurance? Losses due to fraud are
eliminated
8. When a mutual insurer becomes a stock company, the Demutualization
process is called
9. Which of the following is a contract that involves one Insurance policy
party which indemnifies another one a loss arises
from an unknown event?
10. Which of the following is an insurer established by a Captive insurers
parent company's loss exposure's?
, CA LIFE EXAM - PSI
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11. Which of the following is not considered to be a defi- Probability that an event
nition for the term "loss"? will occur
12. Which of the following is not considered a definition The cause of loss
of a risk?
13. Which of the following best describes the statement; Law of large numbers
" the more times, and event is repeated, the more
predictable the outcome becomes"?
14. Which of the following would not be accomplished Risk is eliminated
with the purchase of an insurance policy?
15. Which of the following is a situation where there is a Speculative risk
possibility of either a loss or gain?
16. Which of the following is any situation that presents Loss
the possibility of a loss?
17. An insurer having a large number of similar exposure the greater the number
units is considered important because: insured, the more accu-
rately that is her can pre-
dict losses & set appropri-
ate premiums
18. Which of these statements correctly describes risks? Pure risk is the only insur-
able risk
19. Which type of risk is gambling? Speculative risk
20. Moral hazard is described as the: increased chance of a loss
because of an insured's
dishonest tendencies
, CA LIFE EXAM - PSI
Study online at https://quizlet.com/_e6ouml
21. All of the following circumstances must be met for los Probability of loss is un-
retention to be an effective, risk management tech- known
nique, except
22. All of the following circumstances must be met for lost Probability of loss is un-
attention to be an effective risk management tech- known
nique, except
23. After a policy has lapsed, which provision allows the Reinstatement provision
insurer to continue coverage
24. In a life insurance policy, the entire contract consists policy and attached appli-
of cation
25. Which policy provision protects the policy owner from Grace period
unintentional lapse of the contract?
26. Which of the following is not a common life insurance Extended term
policy later?
27. What an accidental death benefit is added to a whole Policies, cash value is not
life policy, how does this affect the policies cash value? affected
28. A life insurance policy can be surrendered for its cash Nonforfeiture options
value under which policy provision?
29. Which of the following does a policy owner not have Dividend schedule
the right to change?
30. Which statement is true regarding policy dividends? A dividend option is se-
lected by the insured at
the time of the policy pur-
chase
