CA LIFE PSI COMPREHENSIVE EXAM 2026
COMPLETE QUESTIONS AND SOLUTIONS
◍ The taxable portion of a monthly income benefit paid during the
annuity phase from a nonqualified annuity is calculated using the
Answer:Exclusion ratio
◍ Unfair claims settlement methods and practices by an insurance
company include all of the following acts EXCEPT Answer:failure to
pay all claims that are reported within 90 days after a loss occurs
◍ The settlement option that allows proceeds to remain with the insurer
and the earnings to be paid to the beneficiary on a monthly basis is
called Answer:Interest only
◍ Regulations on life insurance advertising apply to which of the
following insurance company materials? Answer:A radio commercial
that promotes the benefits of a specific company's life insurance
products
◍ An insurance company may contest a life policy within a MAXIMUM
of how many years after the policy's effective date? Answer:2
,◍ All of the following factors are used in life insurance premium
determination EXCEPT Answer:Morbidity
◍ The authorization used to obtain the applicant's medical information
that will be used by the insurer for the primary purpose of determining
eligibility must include: Answer:the time frame in which the insurer
must release the eligibility decision to the agent
◍ An intermediary who omits information on an insurance application
without the applicant's knowledge and submits the application to the
insurer may be guilty of: Answer:Misrepresentation
◍ Dividends are NOT subject to taxation because Answer:Paying
dividends is equivalent to returning a premium
◍ The XYZ Insurance Company cancels an intermediary's contract.
XYZ could be bound by the intermediary's later acts if it:
Answer:Continues to pay the intermediary deferred commissions
◍ Which of the following products is designed to pay benefits that can
provide a stream of retirement income to the purchaser? Answer:tax-
deferred growth
◍ Which of the following guarantees that the annuitant CANNOT
outlive their benefits? Answer:Guaranteed lifetime withdrawal benefit
, ◍ Which of the following statements is CORRECT about an insured's
failure to report a claim in a timely manner based on the advice of an
intermediary? Answer:It does not affect the insurance company's
obligations
◍ In Wisconsin, an "intermediary" is defined as a representative of:
Answer:A Solicitor
◍ All of the following statements regarding a group annuity are correct
EXCEPT Answer:Each employee signs and receives an individual
contract
◍ Statements by an application concerning personal health history,
family health history, occupation, and hobbies are referred to as
Answer:Representations
◍ Which of the following entities is responsible for notifying an
insurance company of a disability insurance claim? Answer:1. Insured
2. Insured's physician
◍ An insurer may cancel a policy midterm for all of the following
reasons EXCEPT when the insured: Answer:Has a change in marital
status
COMPLETE QUESTIONS AND SOLUTIONS
◍ The taxable portion of a monthly income benefit paid during the
annuity phase from a nonqualified annuity is calculated using the
Answer:Exclusion ratio
◍ Unfair claims settlement methods and practices by an insurance
company include all of the following acts EXCEPT Answer:failure to
pay all claims that are reported within 90 days after a loss occurs
◍ The settlement option that allows proceeds to remain with the insurer
and the earnings to be paid to the beneficiary on a monthly basis is
called Answer:Interest only
◍ Regulations on life insurance advertising apply to which of the
following insurance company materials? Answer:A radio commercial
that promotes the benefits of a specific company's life insurance
products
◍ An insurance company may contest a life policy within a MAXIMUM
of how many years after the policy's effective date? Answer:2
,◍ All of the following factors are used in life insurance premium
determination EXCEPT Answer:Morbidity
◍ The authorization used to obtain the applicant's medical information
that will be used by the insurer for the primary purpose of determining
eligibility must include: Answer:the time frame in which the insurer
must release the eligibility decision to the agent
◍ An intermediary who omits information on an insurance application
without the applicant's knowledge and submits the application to the
insurer may be guilty of: Answer:Misrepresentation
◍ Dividends are NOT subject to taxation because Answer:Paying
dividends is equivalent to returning a premium
◍ The XYZ Insurance Company cancels an intermediary's contract.
XYZ could be bound by the intermediary's later acts if it:
Answer:Continues to pay the intermediary deferred commissions
◍ Which of the following products is designed to pay benefits that can
provide a stream of retirement income to the purchaser? Answer:tax-
deferred growth
◍ Which of the following guarantees that the annuitant CANNOT
outlive their benefits? Answer:Guaranteed lifetime withdrawal benefit
, ◍ Which of the following statements is CORRECT about an insured's
failure to report a claim in a timely manner based on the advice of an
intermediary? Answer:It does not affect the insurance company's
obligations
◍ In Wisconsin, an "intermediary" is defined as a representative of:
Answer:A Solicitor
◍ All of the following statements regarding a group annuity are correct
EXCEPT Answer:Each employee signs and receives an individual
contract
◍ Statements by an application concerning personal health history,
family health history, occupation, and hobbies are referred to as
Answer:Representations
◍ Which of the following entities is responsible for notifying an
insurance company of a disability insurance claim? Answer:1. Insured
2. Insured's physician
◍ An insurer may cancel a policy midterm for all of the following
reasons EXCEPT when the insured: Answer:Has a change in marital
status
