6/21/25, 8:12 PM CA PSI Site - Life, Accident and Health Agent Examination (Life Agent) OR SICKNESS EXAM (LIFE AGENT) LATEST 2025 REAL …
CA PSI Site - Life, Accident and Health Agent
Examination (Life Agent) OR SICKNESS EXAM
(LIFE AGENT) LATEST 2025 REAL EXAM
COMPLETE 200 QUESTIONS AND CORRECT
DETAILS (VERIFIED ANSWERS)
An admitted insurance company is authorized to
transact insurance in California because it has a
Certificate of Authority granted by the California
Admitted Insurance
Department of Insurance (CDI)
Company vs. Non-
Admitted Insurance
A non-admitted insurance company is not authorized
Company
to transact insurance in California because of failing to
comply with California requirements or did not seek
admission
Pure risks are insurable but Speculative risks are not
Pure Risk vs. Speculative Pure Risks - A possibility of loss, no loss, or gain
Risk
Pure Risk - A possibility of loss or no loss; there is no
possibility for gain
One party writes the contract without inout from the
Contract of Adhesion
other party on a "take-it-or-leave-it" basis
The exchange of value is unequal.
Aleatory Contract
Insured's premium payment is less than the potential
benefit to be received in the event of a loss.
c… 1/48
,6/21/25, 8:12 PM CA PSI Site - Life, Accident and Health Agent Examination (Life Agent) OR SICKNESS EXAM (LIFE AGENT) LATEST 2025 REAL …
An agreement to pay on behalf of another party
Indemnity Contract
under specified circumstances
Only one party is legally bound to the contractual
obligations after the premium is paid to the insurer
Unilateral Contract
Only the insurer makes a promise of future
performance, and only the insurer can be charged
with breach of contract
1) Competent Parties
4 elements of a valid 2) Legal Purpose
contract 3) Agreement (offer and acceptance)
4) Consideration
Standard Risks are individuals who have the same
health, habits, sex/gender, and occupational
characteristics as those reflected in the mortality table
Preferred Risks vs
Standard Risks Preferred Risks are individuals who meet certain
requirements and qualify for lower premiums because
of ideal health, height and weight. Individuals in this
category have a longer than average life expectancy
c… 2/48
,6/21/25, 8:12 PM CA PSI Site - Life, Accident and Health Agent Examination (Life Agent) OR SICKNESS EXAM (LIFE AGENT) LATEST 2025 REAL …
Human Life Value approach is a measure of the
projected future earnings and services of a person at
risk in the event of a premature death.
The objective is to provide the proper amount of
coverage as determined by the value of the individual
to his/her dependents using the following factors:
- The individual's age and gender
- The individual's occupation, annual wage, and
planned retirement age
- Inflation
Human Life Value
Needs Analysis Approach determines a need for
Approach vs. Needs
coverage upon the premature death of an individual.
Analysis Approach
It always assumes the death of the individual to be
immediate and factors the following steps into
arriving at the proper amount of coverage needed:
- Calculate all financial needs caused by immediate
death, including debts, medical bills, and final
expenses
- Provide lifetime income to the spouse
- Pay off mortgage or other debts
- Provide funds for children's education
- Subtracts any assets available to fund financial
needs after death (such as retirement plan, other
insurance, liquid investments, separate savings)
c… 3/48
, 6/21/25, 8:12 PM CA PSI Site - Life, Accident and Health Agent Examination (Life Agent) OR SICKNESS EXAM (LIFE AGENT) LATEST 2025 REAL …
Life Insurance Disability Rider
If the insured becomes totally disabled, the insurer
will waive premiums for the duration of the disability
or the end of the policy, whichever occurs first.
To qualify for the waiver, the insured must be disabled
for a waiting period of 3-6 months.
Waiver of Premium
The policyowner must continue to pay premiums
during the waiting period, but once eligible, the
waiver is retroactive to the start of the disability and
the premiums will be refunded.
During the disability, the insured will credit the
premiums to the policy and all benefits, such as cash
value accumulation and dividend payments, will
continue.
Life Insurance Disability Rider
In the event of total disability and after the initial
waiting period (such as 6 months), premiums are
waived and the insured is paid a monthly income.
Disability Income Rider
The monthly disability income benefit is typically
limited to a percentage of the face value.
The benefit paid from the rider does not reduce the
death benefits paid out upon death.
c… 4/48
CA PSI Site - Life, Accident and Health Agent
Examination (Life Agent) OR SICKNESS EXAM
(LIFE AGENT) LATEST 2025 REAL EXAM
COMPLETE 200 QUESTIONS AND CORRECT
DETAILS (VERIFIED ANSWERS)
An admitted insurance company is authorized to
transact insurance in California because it has a
Certificate of Authority granted by the California
Admitted Insurance
Department of Insurance (CDI)
Company vs. Non-
Admitted Insurance
A non-admitted insurance company is not authorized
Company
to transact insurance in California because of failing to
comply with California requirements or did not seek
admission
Pure risks are insurable but Speculative risks are not
Pure Risk vs. Speculative Pure Risks - A possibility of loss, no loss, or gain
Risk
Pure Risk - A possibility of loss or no loss; there is no
possibility for gain
One party writes the contract without inout from the
Contract of Adhesion
other party on a "take-it-or-leave-it" basis
The exchange of value is unequal.
Aleatory Contract
Insured's premium payment is less than the potential
benefit to be received in the event of a loss.
c… 1/48
,6/21/25, 8:12 PM CA PSI Site - Life, Accident and Health Agent Examination (Life Agent) OR SICKNESS EXAM (LIFE AGENT) LATEST 2025 REAL …
An agreement to pay on behalf of another party
Indemnity Contract
under specified circumstances
Only one party is legally bound to the contractual
obligations after the premium is paid to the insurer
Unilateral Contract
Only the insurer makes a promise of future
performance, and only the insurer can be charged
with breach of contract
1) Competent Parties
4 elements of a valid 2) Legal Purpose
contract 3) Agreement (offer and acceptance)
4) Consideration
Standard Risks are individuals who have the same
health, habits, sex/gender, and occupational
characteristics as those reflected in the mortality table
Preferred Risks vs
Standard Risks Preferred Risks are individuals who meet certain
requirements and qualify for lower premiums because
of ideal health, height and weight. Individuals in this
category have a longer than average life expectancy
c… 2/48
,6/21/25, 8:12 PM CA PSI Site - Life, Accident and Health Agent Examination (Life Agent) OR SICKNESS EXAM (LIFE AGENT) LATEST 2025 REAL …
Human Life Value approach is a measure of the
projected future earnings and services of a person at
risk in the event of a premature death.
The objective is to provide the proper amount of
coverage as determined by the value of the individual
to his/her dependents using the following factors:
- The individual's age and gender
- The individual's occupation, annual wage, and
planned retirement age
- Inflation
Human Life Value
Needs Analysis Approach determines a need for
Approach vs. Needs
coverage upon the premature death of an individual.
Analysis Approach
It always assumes the death of the individual to be
immediate and factors the following steps into
arriving at the proper amount of coverage needed:
- Calculate all financial needs caused by immediate
death, including debts, medical bills, and final
expenses
- Provide lifetime income to the spouse
- Pay off mortgage or other debts
- Provide funds for children's education
- Subtracts any assets available to fund financial
needs after death (such as retirement plan, other
insurance, liquid investments, separate savings)
c… 3/48
, 6/21/25, 8:12 PM CA PSI Site - Life, Accident and Health Agent Examination (Life Agent) OR SICKNESS EXAM (LIFE AGENT) LATEST 2025 REAL …
Life Insurance Disability Rider
If the insured becomes totally disabled, the insurer
will waive premiums for the duration of the disability
or the end of the policy, whichever occurs first.
To qualify for the waiver, the insured must be disabled
for a waiting period of 3-6 months.
Waiver of Premium
The policyowner must continue to pay premiums
during the waiting period, but once eligible, the
waiver is retroactive to the start of the disability and
the premiums will be refunded.
During the disability, the insured will credit the
premiums to the policy and all benefits, such as cash
value accumulation and dividend payments, will
continue.
Life Insurance Disability Rider
In the event of total disability and after the initial
waiting period (such as 6 months), premiums are
waived and the insured is paid a monthly income.
Disability Income Rider
The monthly disability income benefit is typically
limited to a percentage of the face value.
The benefit paid from the rider does not reduce the
death benefits paid out upon death.
c… 4/48
