CA PSI Site - Life Examination WITH COMPLETE
QUESTIONS AND ANSWERS 2025\2026|
GUARANTEED PASS!! A+ Grade
what is meant by referring to an insurance policy as a unilateral contract?
- correct answer only one party makes a legal enforceable promise
when must insurance records of insurance agents and brokers be made available to the Insurance
Commissioner?
- correct answer at all times
any situation that presents the possibility of a loss is known as what
- correct answer a loss exposure
which of the following information is not required to be communicated in a life insurance contract?
- correct answer personal judgement
the direct distribution of insurance utilizes all of the following to promote the sale of insurance EXCEPT
- correct answer telephone call from an agent
a contract in which one part promises to identify another against loss that arises from an unknown
event is
- correct answer an insurance policy
all of the occurrences listed below are examples of an insurable event as defined by the California
insurance code EXCEPT
- correct answer an insured suffers financial loss in the state lottery
all of the following statements about aleatory contracts are true EXCEPT
- correct answer the insured and insurer contribute equally to the contract
,all of the following would be considered unfair trade practices EXCEPT
- correct answer committing any act of discrimination whether it be deemed fair or unfair
As authorized by the California Insurance Code, the Insurance Commissioner has provided standards for
names used by life insurance agents. Under these standards which, if any, of the following are
automatically acceptable for Mary Brown, a holder of the CLU designation?
- correct answer Mary brown insurance servies
a contract of indemnity is one in which
- correct answer One party is restored to the same financial position the party was in before the loss
occurred
In insurance terminology, "indemnity" means
- correct answer make whole
As defined in the California insurance Code, "insurance" is a
- correct answer contract
What would a person be guilty of who refuses to deliver any books, records, or assets to the
commissioner once a seizure order has been executed?
- correct answer a 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 answer fiduciary
which of the following statement regarding risk is TRUE
- correct answer only pure risks are insurable
The purchase of an insurance policy may accomplish all of the following for the insured EXCEPT
- correct answer the elimination of risk
, Insureds are entitled to recover an amount NOT greater than the amount of their loss under the
principle of
- correct answer indemnity
what rule is used to determine the importance of a representation?
- correct answer the materiality of concealment
the required contents of a policy include all of the following EXCEPT
- correct answer the possibility of loss
all of the following are characteristics of reinsurance EXCEPT
- correct answer increases the unearned premium reserve
according to the California insurance code, an insurance policy must specify all of the following EXEPT
the
- correct answer financial rating of the insurer
All of the following qualify as "background information" as defined in Section 1729.2 of the California
Insurance Code, EXCEPT
- correct answer misdemeanor charges filed, not resulting in conviction
Loss retention is an effective risk management technique when all of the following conditions exist
EXCEPT the
- correct answer probability of loss is unknown
a situation in which there is a possibility of loss or gain is a
- correct answer speculative risk
Why is having a large number of similar exposure units important to insurers?
- correct answer the greater the number insured, the more accurately the insurer can predict losses and
set appropriate premiums
all of the following are benefits of insurance EXCEPT it
- correct answer eliminates fraudulent losses
QUESTIONS AND ANSWERS 2025\2026|
GUARANTEED PASS!! A+ Grade
what is meant by referring to an insurance policy as a unilateral contract?
- correct answer only one party makes a legal enforceable promise
when must insurance records of insurance agents and brokers be made available to the Insurance
Commissioner?
- correct answer at all times
any situation that presents the possibility of a loss is known as what
- correct answer a loss exposure
which of the following information is not required to be communicated in a life insurance contract?
- correct answer personal judgement
the direct distribution of insurance utilizes all of the following to promote the sale of insurance EXCEPT
- correct answer telephone call from an agent
a contract in which one part promises to identify another against loss that arises from an unknown
event is
- correct answer an insurance policy
all of the occurrences listed below are examples of an insurable event as defined by the California
insurance code EXCEPT
- correct answer an insured suffers financial loss in the state lottery
all of the following statements about aleatory contracts are true EXCEPT
- correct answer the insured and insurer contribute equally to the contract
,all of the following would be considered unfair trade practices EXCEPT
- correct answer committing any act of discrimination whether it be deemed fair or unfair
As authorized by the California Insurance Code, the Insurance Commissioner has provided standards for
names used by life insurance agents. Under these standards which, if any, of the following are
automatically acceptable for Mary Brown, a holder of the CLU designation?
- correct answer Mary brown insurance servies
a contract of indemnity is one in which
- correct answer One party is restored to the same financial position the party was in before the loss
occurred
In insurance terminology, "indemnity" means
- correct answer make whole
As defined in the California insurance Code, "insurance" is a
- correct answer contract
What would a person be guilty of who refuses to deliver any books, records, or assets to the
commissioner once a seizure order has been executed?
- correct answer a 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 answer fiduciary
which of the following statement regarding risk is TRUE
- correct answer only pure risks are insurable
The purchase of an insurance policy may accomplish all of the following for the insured EXCEPT
- correct answer the elimination of risk
, Insureds are entitled to recover an amount NOT greater than the amount of their loss under the
principle of
- correct answer indemnity
what rule is used to determine the importance of a representation?
- correct answer the materiality of concealment
the required contents of a policy include all of the following EXCEPT
- correct answer the possibility of loss
all of the following are characteristics of reinsurance EXCEPT
- correct answer increases the unearned premium reserve
according to the California insurance code, an insurance policy must specify all of the following EXEPT
the
- correct answer financial rating of the insurer
All of the following qualify as "background information" as defined in Section 1729.2 of the California
Insurance Code, EXCEPT
- correct answer misdemeanor charges filed, not resulting in conviction
Loss retention is an effective risk management technique when all of the following conditions exist
EXCEPT the
- correct answer probability of loss is unknown
a situation in which there is a possibility of loss or gain is a
- correct answer speculative risk
Why is having a large number of similar exposure units important to insurers?
- correct answer the greater the number insured, the more accurately the insurer can predict losses and
set appropriate premiums
all of the following are benefits of insurance EXCEPT it
- correct answer eliminates fraudulent losses
