PSI Life Exam With Verified Answers
Any fsituation fthat fpresents fthe fpossibility fof fa floss fis fknown fas fa f-
fCORRECT✅✅loss fexposure
All fof fthe foccurrences flisted fbelow fare fexamples fof fan finsurable fevent fas fdefined fby
fthe fCalifornia fInsurance fCode fEXCEPT: f- fCORRECT✅✅an finsured fsuffers fa
ffinancial floss fin fthe fstate flottery
As fdefined fin fthe fCalifornia fInsurance fCode, f"insurance" fis f- fCORRECT✅✅a
fcontract
A fsituation fin fwhich fthere fis fa fpossibility fof floss for fa fgain fis fa f-
fCORRECT✅✅speculative frisk
Which fof fthe ffollowing fis fa fhazard? f- fCORRECT✅✅A fcondition fthat fmay fincrease
fthe flikelihood fof fa floss foccurring
A fperson fowns fa flife fannuity. fHe felects fto freceive fhis fannuity fpayments fmonthly ffor
fthe fremainder fof fhis flife fwith f"ten fyears fcertain". fThe fannuity fwill fmake fpayments f-
fCORRECT✅✅For fa fminimum fof f120 fmonths fand fmaximum fof fthe fremainder fof fhis
flife
According fto fthe fCalifornia fInsurance fCode, fgoverning fthe fuse fof flife finsurance fpolicy
fillustrations, fthe fterm f"illustration" fmeans f- fCORRECT✅✅a fpresentation fof fpolicy
ffeatures fthat fincludes fnonguaranteed felements
What fdoes fthe fstatement f"life finsurance fcreated fan fimmediate festate" fmean? f-
fCORRECT✅✅The ftotal fdeath fbenefit fis fpaid fwhenever fthe finsured fdies
Which fbenefits fare fprovided fby fkey femployee finsurance? f- fCORRECT✅✅Payment
fto fa fbusiness fwhen fan fimportant femployee fdies
What fis fone fdifference fbetween fgroup flife fand findividual flife
underwriting? f- fCORRECT✅✅Individual flife finsurance frequires fthe fapplicant fto
fanswer fmedical fquestions
A f10-year fcertain fannuity fwith fan finstallment frefund fis fpurchased.
The fannuitant fdies fafter freceiving fmonthly fpayments ffor f5 fyears.
How fmany fremaining fpayments fwill fthe finsurer fmake? f- fCORRECT✅✅60 fpayments
The ftheory fof fprobability fis fapplied fto flife finsurance fthrough fthe
, use fof f- fCORRECT✅✅Mortality ftables
What fis fthe fdifference fbetween fdeferred fannuities fand fimmediate fannuities? f-
fCORRECT✅✅Deferred fannuities fhave flonger faccumulation fperiods.
The finsured fis ftotally fand fpermanently fdisabled. fThe finsured's
policy fcontinues fin fforce fwithout fpayment fof ffurther fpremiums
because fthe fpolicy fcontains fa f- fCORRECT✅✅Waiver fof fpremium fprovision
All fof fthe ffollowing fare ftrue fabout fterm flife finsurance fpolicies
EXCEPT f- fCORRECT✅✅The fface famount fis fpaid fif fthe finsured fsurvives fto fthe fend
fof fthe
policy fperiod
Which fof fthe ffollowing fis fa fcorrect fstatement fabout fthe fpremium
payment fmodes? fThe ftotal fpremium fpaid fby fa flife fpolicy fowner ffor
one fpolicy fyear fis f- fCORRECT✅✅Greater fif fthe fpremium fis fpaid fsemiannually
frather fthan fannually.
What fis fthe flimit fof fliability fon fa flife finsurance fpolicy? f- fCORRECT✅✅The fface
famount fof fthe fpolicy.
What fhappens fif fan finsurer fviolates fthe fMedical fLoss fRatio frule fand
spends ftoo fmuch fmoney fon fadministrative fcosts? f- fCORRECT✅✅Insurers fthat fdo
fnot fmeet fthe fMedical fLoss fRatio fstandard fwill fbe
required fto fprovide frebates fto ftheir fcustomers fand freduce fspending
on ftheir fadministrative fcosts
A fcontract fin fwhich fone fparty fpromises fto findemnify fanother
against floss fthat farises ffrom fan funknown fevent fis f- fCORRECT✅✅an finsurance
fpolicy
Insureds fare fentitled fto frecover fan famount fNOT fgreater fthan fthe
amount fof ftheir floss funder fthe fprinciple fof f- fCORRECT✅✅Indemnity.
According fto fthe fCalifornia fInsurance fCode, fan finsurance fpolicy
must fspecify fall fof fthe ffollowing fEXCEPT f- fCORRECT✅✅The ffinancial frating fof fthe
finsurer.
The fprocess fby fwhich fan finsurer fdecides fwhether fto fissue frequested
insurance fis fcalled f- fCORRECT✅✅Underwriting
What fis fthe fdefinition fof fpremium? f- fCORRECT✅✅The fmoney fan finsured fpays fan
finsurer fto fobtain fthe fbenefits fprovided fin
the fpolicy.
Any fsituation fthat fpresents fthe fpossibility fof fa floss fis fknown fas fa f-
fCORRECT✅✅loss fexposure
All fof fthe foccurrences flisted fbelow fare fexamples fof fan finsurable fevent fas fdefined fby
fthe fCalifornia fInsurance fCode fEXCEPT: f- fCORRECT✅✅an finsured fsuffers fa
ffinancial floss fin fthe fstate flottery
As fdefined fin fthe fCalifornia fInsurance fCode, f"insurance" fis f- fCORRECT✅✅a
fcontract
A fsituation fin fwhich fthere fis fa fpossibility fof floss for fa fgain fis fa f-
fCORRECT✅✅speculative frisk
Which fof fthe ffollowing fis fa fhazard? f- fCORRECT✅✅A fcondition fthat fmay fincrease
fthe flikelihood fof fa floss foccurring
A fperson fowns fa flife fannuity. fHe felects fto freceive fhis fannuity fpayments fmonthly ffor
fthe fremainder fof fhis flife fwith f"ten fyears fcertain". fThe fannuity fwill fmake fpayments f-
fCORRECT✅✅For fa fminimum fof f120 fmonths fand fmaximum fof fthe fremainder fof fhis
flife
According fto fthe fCalifornia fInsurance fCode, fgoverning fthe fuse fof flife finsurance fpolicy
fillustrations, fthe fterm f"illustration" fmeans f- fCORRECT✅✅a fpresentation fof fpolicy
ffeatures fthat fincludes fnonguaranteed felements
What fdoes fthe fstatement f"life finsurance fcreated fan fimmediate festate" fmean? f-
fCORRECT✅✅The ftotal fdeath fbenefit fis fpaid fwhenever fthe finsured fdies
Which fbenefits fare fprovided fby fkey femployee finsurance? f- fCORRECT✅✅Payment
fto fa fbusiness fwhen fan fimportant femployee fdies
What fis fone fdifference fbetween fgroup flife fand findividual flife
underwriting? f- fCORRECT✅✅Individual flife finsurance frequires fthe fapplicant fto
fanswer fmedical fquestions
A f10-year fcertain fannuity fwith fan finstallment frefund fis fpurchased.
The fannuitant fdies fafter freceiving fmonthly fpayments ffor f5 fyears.
How fmany fremaining fpayments fwill fthe finsurer fmake? f- fCORRECT✅✅60 fpayments
The ftheory fof fprobability fis fapplied fto flife finsurance fthrough fthe
, use fof f- fCORRECT✅✅Mortality ftables
What fis fthe fdifference fbetween fdeferred fannuities fand fimmediate fannuities? f-
fCORRECT✅✅Deferred fannuities fhave flonger faccumulation fperiods.
The finsured fis ftotally fand fpermanently fdisabled. fThe finsured's
policy fcontinues fin fforce fwithout fpayment fof ffurther fpremiums
because fthe fpolicy fcontains fa f- fCORRECT✅✅Waiver fof fpremium fprovision
All fof fthe ffollowing fare ftrue fabout fterm flife finsurance fpolicies
EXCEPT f- fCORRECT✅✅The fface famount fis fpaid fif fthe finsured fsurvives fto fthe fend
fof fthe
policy fperiod
Which fof fthe ffollowing fis fa fcorrect fstatement fabout fthe fpremium
payment fmodes? fThe ftotal fpremium fpaid fby fa flife fpolicy fowner ffor
one fpolicy fyear fis f- fCORRECT✅✅Greater fif fthe fpremium fis fpaid fsemiannually
frather fthan fannually.
What fis fthe flimit fof fliability fon fa flife finsurance fpolicy? f- fCORRECT✅✅The fface
famount fof fthe fpolicy.
What fhappens fif fan finsurer fviolates fthe fMedical fLoss fRatio frule fand
spends ftoo fmuch fmoney fon fadministrative fcosts? f- fCORRECT✅✅Insurers fthat fdo
fnot fmeet fthe fMedical fLoss fRatio fstandard fwill fbe
required fto fprovide frebates fto ftheir fcustomers fand freduce fspending
on ftheir fadministrative fcosts
A fcontract fin fwhich fone fparty fpromises fto findemnify fanother
against floss fthat farises ffrom fan funknown fevent fis f- fCORRECT✅✅an finsurance
fpolicy
Insureds fare fentitled fto frecover fan famount fNOT fgreater fthan fthe
amount fof ftheir floss funder fthe fprinciple fof f- fCORRECT✅✅Indemnity.
According fto fthe fCalifornia fInsurance fCode, fan finsurance fpolicy
must fspecify fall fof fthe ffollowing fEXCEPT f- fCORRECT✅✅The ffinancial frating fof fthe
finsurer.
The fprocess fby fwhich fan finsurer fdecides fwhether fto fissue frequested
insurance fis fcalled f- fCORRECT✅✅Underwriting
What fis fthe fdefinition fof fpremium? f- fCORRECT✅✅The fmoney fan finsured fpays fan
finsurer fto fobtain fthe fbenefits fprovided fin
the fpolicy.
