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PSI LIFE INSURANCE EXAM ACTUAL PREP
QUESTIONS AND WELL REVISED ANSWERS -
LATEST AND COMPLETE UPDATE WITH
VERIFIED SOLUTIONS – ASSURES PASS
what is meant by referring to an insurance policy as a unilateral contract? -
ANSWER: Only one party makes a legally enforceable promise
when must insurance records of insurance agents and brokers be made available to
the insurance Commissioner - ANSWER: At all times
Any situation that presents the possibility of a loss is known as - ANSWER: A
loss exposure
Which of the following information is not required to be communicated in a Life
Insurance contract? - ANSWER: Personal judgment
The direct distribution of insurance utilizes all of the following to promote the sale
of insurance EXCEPT - ANSWER: Telephone call from an agent
A contract in which one party promises to indemnify another against loss that
arises from an unknown even is - ANSWER: An insurance policy
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All of the occurrences listed below area examples of an insurable event as defined
by the California insurance Code EXCEPT - ANSWER: An insured suffers a
financial loss in the stat lottery
All of the following statements about aleatory contracts are true EXCEPT -
ANSWER: The insured and insurer contribute equally to the contract
All of the following would be considered unfair trade practices EXCEPT -
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 standard for names used by life insurance agents. Under these standards
which, if any, of these following are automatically acceptable for Mary Brown, a
holder of the CLU designation? - ANSWER: Mary Brown Insurance Services
A contract of indemnity is one in which - ANSWER: One party is restored to the
same financial position the party was in before the loss occurred
In insurance terminology, "indemnity" means - ANSWER: make whole
As defined in the California Insurance Code, "Insurance" - ANSWER: is a
contract
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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? - 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? - ANSWER: Fiduciary
Which of the following statement regarding risk id TRUE? - ANSWER: Only
pure risks are insurable
The purchase of an insurance polity may accomplish all of the following for the
insured EXCEPT - ANSWER: The elimination of risk
Insureds are entitled to recover an amount NOT greater than the amount of their
loss under the principle of - ANSWER: Indemnity
What rule is used to determine the importance of a representation? - ANSWER:
The materiality of concealment
PSI LIFE INSURANCE EXAM ACTUAL PREP
QUESTIONS AND WELL REVISED ANSWERS -
LATEST AND COMPLETE UPDATE WITH
VERIFIED SOLUTIONS – ASSURES PASS
what is meant by referring to an insurance policy as a unilateral contract? -
ANSWER: Only one party makes a legally enforceable promise
when must insurance records of insurance agents and brokers be made available to
the insurance Commissioner - ANSWER: At all times
Any situation that presents the possibility of a loss is known as - ANSWER: A
loss exposure
Which of the following information is not required to be communicated in a Life
Insurance contract? - ANSWER: Personal judgment
The direct distribution of insurance utilizes all of the following to promote the sale
of insurance EXCEPT - ANSWER: Telephone call from an agent
A contract in which one party promises to indemnify another against loss that
arises from an unknown even is - ANSWER: An insurance policy
,2|Page
All of the occurrences listed below area examples of an insurable event as defined
by the California insurance Code EXCEPT - ANSWER: An insured suffers a
financial loss in the stat lottery
All of the following statements about aleatory contracts are true EXCEPT -
ANSWER: The insured and insurer contribute equally to the contract
All of the following would be considered unfair trade practices EXCEPT -
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 standard for names used by life insurance agents. Under these standards
which, if any, of these following are automatically acceptable for Mary Brown, a
holder of the CLU designation? - ANSWER: Mary Brown Insurance Services
A contract of indemnity is one in which - ANSWER: One party is restored to the
same financial position the party was in before the loss occurred
In insurance terminology, "indemnity" means - ANSWER: make whole
As defined in the California Insurance Code, "Insurance" - ANSWER: is a
contract
, 3|Page
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? - 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? - ANSWER: Fiduciary
Which of the following statement regarding risk id TRUE? - ANSWER: Only
pure risks are insurable
The purchase of an insurance polity may accomplish all of the following for the
insured EXCEPT - ANSWER: The elimination of risk
Insureds are entitled to recover an amount NOT greater than the amount of their
loss under the principle of - ANSWER: Indemnity
What rule is used to determine the importance of a representation? - ANSWER:
The materiality of concealment
