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CA LIFE EXAM – PSI EXAM|COMPLETE
STUDY GUIDE WITH DETAILED
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A participating company is also referred to as which type of insurer? - CORRECT
ANSWERS.✔️✔M ️ utual insurer
An insurer owned by its policyholders, is called a - CORRECT
ANSWERS.✔️✔M ️ utual insurer
What is a participating life insurance policy? - CORRECT ANSWERS.✔️✔️Contract
that allows the policyowner to receive a share of surplus in the form of policy
dividends
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? - CORRECT
ANSWERS.✔️✔️Reinsurance
John owns an insurance company that gives him the right to share and then sure
surplus. What kind of policy is this? - CORRECT ANSWERS.✔️✔️Participating
Which of the following is not a characteristic of reinsurance? - CORRECT
ANSWERS.✔️✔️Increases the unearned premium reserved
Which of the following is not a benefit of insurance? - CORRECT
ANSWERS.✔️✔️Losses due to fraud are eliminated
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When a mutual insurer becomes a stock company, the process is called -
CORRECT ANSWERS.✔️✔️Demutualization
Which of the following is a contract that involves one party which indemnifies
another one a loss arises from an unknown event? - CORRECT
ANSWERS.✔️✔️Insurance policy
Which of the following is an insurer established by a parent company's loss
exposure's? - CORRECT ANSWERS.✔️✔️Captive insurers
Which of the following is not considered to be a definition for the term "loss"? -
CORRECT ANSWERS.✔️✔️Probability that an event will occur
Which of the following is not considered a definition of a risk? - CORRECT
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"? - CORRECT
ANSWERS.✔️✔️Law of large numbers
Which of the following would not be accomplished with the purchase of an
insurance policy? - CORRECT ANSWERS.✔️✔️Risk is eliminated
Which of the following is a situation where there is a possibility of either a loss or
gain? - CORRECT ANSWERS.✔️✔️Speculative risk
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Which of the following is any situation that presents the possibility of a loss? -
CORRECT ANSWERS.✔️✔️Loss
An insurer having a large number of similar exposure units is considered
important because: - CORRECT 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? - CORRECT
ANSWERS.✔️✔️Pure risk is the only insurable risk
Which type of risk is gambling? - CORRECT ANSWERS.✔️✔️Speculative risk
Moral hazard is described as the: - CORRECT ANSWERS.✔️✔️increased chance of
a loss because of an insured's dishonest tendencies
All of the following circumstances must be met for los retention to be an
effective, risk management technique, except - CORRECT
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 - CORRECT
ANSWERS.✔️✔️Probability of loss is unknown
After a policy has lapsed, which provision allows the insurer to continue coverage
- CORRECT ANSWERS.✔️✔️Reinstatement provision
In a life insurance policy, the entire contract consists of - CORRECT
ANSWERS.✔️✔p ️ olicy and attached application
SUCCESS
CA LIFE EXAM – PSI EXAM|COMPLETE
STUDY GUIDE WITH DETAILED
QUESTIONS AND 100% RIGHT/AUTHENTIC
ANSWERS|ALREADY GRADED A|GET A
PASS ON YYOUR FIRST TRIAL
A participating company is also referred to as which type of insurer? - CORRECT
ANSWERS.✔️✔M ️ utual insurer
An insurer owned by its policyholders, is called a - CORRECT
ANSWERS.✔️✔M ️ utual insurer
What is a participating life insurance policy? - CORRECT ANSWERS.✔️✔️Contract
that allows the policyowner to receive a share of surplus in the form of policy
dividends
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? - CORRECT
ANSWERS.✔️✔️Reinsurance
John owns an insurance company that gives him the right to share and then sure
surplus. What kind of policy is this? - CORRECT ANSWERS.✔️✔️Participating
Which of the following is not a characteristic of reinsurance? - CORRECT
ANSWERS.✔️✔️Increases the unearned premium reserved
Which of the following is not a benefit of insurance? - CORRECT
ANSWERS.✔️✔️Losses due to fraud are eliminated
SUCCESS
,STUDYSAGE
When a mutual insurer becomes a stock company, the process is called -
CORRECT ANSWERS.✔️✔️Demutualization
Which of the following is a contract that involves one party which indemnifies
another one a loss arises from an unknown event? - CORRECT
ANSWERS.✔️✔️Insurance policy
Which of the following is an insurer established by a parent company's loss
exposure's? - CORRECT ANSWERS.✔️✔️Captive insurers
Which of the following is not considered to be a definition for the term "loss"? -
CORRECT ANSWERS.✔️✔️Probability that an event will occur
Which of the following is not considered a definition of a risk? - CORRECT
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"? - CORRECT
ANSWERS.✔️✔️Law of large numbers
Which of the following would not be accomplished with the purchase of an
insurance policy? - CORRECT ANSWERS.✔️✔️Risk is eliminated
Which of the following is a situation where there is a possibility of either a loss or
gain? - CORRECT ANSWERS.✔️✔️Speculative risk
SUCCESS
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Which of the following is any situation that presents the possibility of a loss? -
CORRECT ANSWERS.✔️✔️Loss
An insurer having a large number of similar exposure units is considered
important because: - CORRECT 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? - CORRECT
ANSWERS.✔️✔️Pure risk is the only insurable risk
Which type of risk is gambling? - CORRECT ANSWERS.✔️✔️Speculative risk
Moral hazard is described as the: - CORRECT ANSWERS.✔️✔️increased chance of
a loss because of an insured's dishonest tendencies
All of the following circumstances must be met for los retention to be an
effective, risk management technique, except - CORRECT
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 - CORRECT
ANSWERS.✔️✔️Probability of loss is unknown
After a policy has lapsed, which provision allows the insurer to continue coverage
- CORRECT ANSWERS.✔️✔️Reinstatement provision
In a life insurance policy, the entire contract consists of - CORRECT
ANSWERS.✔️✔p ️ olicy and attached application
SUCCESS
