1/14/26, 6:49 AM CA PSI Site - Life, Accident and Health Agent Examination (Life Agent) Exam (2026) UPDATE Verified Questions And Answers | Wit…
CA PSI Site - Life, Accident and Health Agent
Examination (Life Agent) Exam (2026) UPDATE
Verified Questions And Answers | With 100%
Correct Answers graded A+ Guaranteed Success!!
Save
Terms in this set (118)
Admitted Insurance Company vs. An admitted insurance company is authorized to
Non-Admitted Insurance Company transact insurance in California because it has a
Certificate of Authority granted by the California
Department of Insurance (CDI)
A non-admitted insurance company is not
authorized to transact insurance in California
because of failing to comply with California
requirements or did not seek admission
Pure Risk vs. Speculative Risk Pure risks are insurable but Speculative risks are
not
Pure Risks - A possibility of loss, no loss, or gain
Pure Risk - A possibility of loss or no loss; there is
no possibility for gain
Contract of Adhesion One party writes the contract without inout from
the other party on a "take-it-or-leave-it" basis
https://quizlet.com/1130581259/ca-psi-site-life-accident-and-health-agent-examination-life-agent-exam-2026-update-verified-questions-and-answers-… 1/34
,1/14/26, 6:49 AM CA PSI Site - Life, Accident and Health Agent Examination (Life Agent) Exam (2026) UPDATE Verified Questions And Answers | Wit…
Aleatory Contract The exchange of value is unequal.
Insured's premium payment is less than the
potential benefit to be received in the event of a
loss.
Indemnity Contract An agreement to pay on behalf of another party
under specified circumstances
Unilateral Contract Only one party is legally bound to the contractual
obligations after the premium is paid to the insurer
Only the insurer makes a promise of future
performance, and only the insurer can be charged
with breach of contract
4 elements of a valid contract 1) Competent Parties
2) Legal Purpose
3) Agreement (offer and acceptance)
4) Consideration
Preferred Risks vs Standard Risks Standard Risks are individuals who have the same
health, habits, sex/gender, and occupational
characteristics as those reflected in the mortality
table
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
https://quizlet.com/1130581259/ca-psi-site-life-accident-and-health-agent-examination-life-agent-exam-2026-update-verified-questions-and-answers-… 2/34
,1/14/26, 6:49 AM CA PSI Site - Life, Accident and Health Agent Examination (Life Agent) Exam (2026) UPDATE Verified Questions And Answers | Wit…
Human Life Value Approach vs. Human Life Value approach is a measure of the
Needs Analysis Approach 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
Needs Analysis Approach determines a need for
coverage upon the premature death of an
individual.
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)
https://quizlet.com/1130581259/ca-psi-site-life-accident-and-health-agent-examination-life-agent-exam-2026-update-verified-questions-and-answers-… 3/34
, 1/14/26, 6:49 AM CA PSI Site - Life, Accident and Health Agent Examination (Life Agent) Exam (2026) UPDATE Verified Questions And Answers | Wit…
Waiver of Premium 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.
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.
Disability Income Rider 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.
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.
https://quizlet.com/1130581259/ca-psi-site-life-accident-and-health-agent-examination-life-agent-exam-2026-update-verified-questions-and-answers-… 4/34
CA PSI Site - Life, Accident and Health Agent
Examination (Life Agent) Exam (2026) UPDATE
Verified Questions And Answers | With 100%
Correct Answers graded A+ Guaranteed Success!!
Save
Terms in this set (118)
Admitted Insurance Company vs. An admitted insurance company is authorized to
Non-Admitted Insurance Company transact insurance in California because it has a
Certificate of Authority granted by the California
Department of Insurance (CDI)
A non-admitted insurance company is not
authorized to transact insurance in California
because of failing to comply with California
requirements or did not seek admission
Pure Risk vs. Speculative Risk Pure risks are insurable but Speculative risks are
not
Pure Risks - A possibility of loss, no loss, or gain
Pure Risk - A possibility of loss or no loss; there is
no possibility for gain
Contract of Adhesion One party writes the contract without inout from
the other party on a "take-it-or-leave-it" basis
https://quizlet.com/1130581259/ca-psi-site-life-accident-and-health-agent-examination-life-agent-exam-2026-update-verified-questions-and-answers-… 1/34
,1/14/26, 6:49 AM CA PSI Site - Life, Accident and Health Agent Examination (Life Agent) Exam (2026) UPDATE Verified Questions And Answers | Wit…
Aleatory Contract The exchange of value is unequal.
Insured's premium payment is less than the
potential benefit to be received in the event of a
loss.
Indemnity Contract An agreement to pay on behalf of another party
under specified circumstances
Unilateral Contract Only one party is legally bound to the contractual
obligations after the premium is paid to the insurer
Only the insurer makes a promise of future
performance, and only the insurer can be charged
with breach of contract
4 elements of a valid contract 1) Competent Parties
2) Legal Purpose
3) Agreement (offer and acceptance)
4) Consideration
Preferred Risks vs Standard Risks Standard Risks are individuals who have the same
health, habits, sex/gender, and occupational
characteristics as those reflected in the mortality
table
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
https://quizlet.com/1130581259/ca-psi-site-life-accident-and-health-agent-examination-life-agent-exam-2026-update-verified-questions-and-answers-… 2/34
,1/14/26, 6:49 AM CA PSI Site - Life, Accident and Health Agent Examination (Life Agent) Exam (2026) UPDATE Verified Questions And Answers | Wit…
Human Life Value Approach vs. Human Life Value approach is a measure of the
Needs Analysis Approach 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
Needs Analysis Approach determines a need for
coverage upon the premature death of an
individual.
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)
https://quizlet.com/1130581259/ca-psi-site-life-accident-and-health-agent-examination-life-agent-exam-2026-update-verified-questions-and-answers-… 3/34
, 1/14/26, 6:49 AM CA PSI Site - Life, Accident and Health Agent Examination (Life Agent) Exam (2026) UPDATE Verified Questions And Answers | Wit…
Waiver of Premium 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.
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.
Disability Income Rider 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.
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.
https://quizlet.com/1130581259/ca-psi-site-life-accident-and-health-agent-examination-life-agent-exam-2026-update-verified-questions-and-answers-… 4/34
