CALIFORNIA PSI LIFE INSURANCE EXAM QUESTIONS
WITH CORRECT ANSWERS 2026/2027 UPDATED
When is a representation false? - ANSWER---when the facts fail to
correspond with its assertions or stipulations
Which of the following is TRUE regarding the use of fictitious names
for business? - ANSWER---The actual and fictitious business names
must be registered with the commissioner
Which is an ACCURATE statement regarding dependent coverage
under a group insurance policy? - ANSWER---The coverage must not
exceed more than 100 percent of the coverage for the insured employee
According to CIC Section 1711, an organization ceases to exist as an
entity eligible to hold a license EXCEPT - ANSWER---upon the
termination of all contracts
As long as employment continues, which is the ONLY reason the
validity of a group life insurance policy can be contested? - ANSWER---
Non-payment of premiums after the policy has bee in force for two
years.
All of the following are TRUE about the rules regarding the sale of life
insurance and annuities to seniors age 65 or older EXCEPT - ANSWER-
--The agent, broker, or insurer is required to show a copy of their
insurance license with name, address, and phone number when
conducting business in the senior home
, CALIFORNIA PSI LIFE INSURANCE EXAM QUESTIONS
WITH CORRECT ANSWERS 2026/2027 UPDATED
What is a solicitor employed to do for a policy other than life? -
ANSWER---To aid a property and casualty agent or broker in
transacting insurance
All of the following are examples of representation except - ANSWER--
-It may be altered after the insurance is effected
Except as provided by sections 10203.5 and 10203.8 in the CIC, the
insurer shall provide which document to be delivered by the employer to
the employee? - ANSWER---An individual certification of insurance
What is the purpose of creating minimum underwriting standards for
those testing positive for Acquired Immune Deficiency Syndrome,
Human Immunodeficiency Virus or Aids Related Complex? -
ANSWER---To avoid discrimination between individuals in the same
rating class who have been diagnosed with the conditions of AIDS, ARC
or HIV
Which of the following is TRUE regarding continuing eduction
requirements of an agent or broker? - ANSWER---Any licensee shall
satisfactorily complete 24 hours of instruction prior to license renewal.
Which of the following provisions of free insurance offered as incentive
to purchase or rent property is TRUE? - ANSWER---It requires a
separate charge or fee.
, CALIFORNIA PSI LIFE INSURANCE EXAM QUESTIONS
WITH CORRECT ANSWERS 2026/2027 UPDATED
Which is the maximum fine for a person who transacts insurance
without a valid license? - ANSWER---$50,000 and/or imprisonment for
a period not exceeding one year.
Which of the following is TRUE regarding non-admitted insurers? -
ANSWER---Acting as an agent for a nonadmitted insurer is considered a
misdemeanor.
A policy shall specify all of the following EXCEPT - ANSWER---The
method in which the coverage amount was calculated
How long does an employee in a group insurance policy have to exercise
the conversion privilege after employment is terminated? - ANSWER---
31 days to use the conversion privilege and begin an individual life
insurance policy
Which group of people is offered additional protection by the Unfair
Practices Act that regulates trade practices in the business of insurance?
- ANSWER---Survivors of the Holocaust
Which of the following is TRUE regarding advertisements or printed
matter used by an agent or broker? - ANSWER---The printer material
must accurately show the relationship between the agent or broker and
the agency.
WITH CORRECT ANSWERS 2026/2027 UPDATED
When is a representation false? - ANSWER---when the facts fail to
correspond with its assertions or stipulations
Which of the following is TRUE regarding the use of fictitious names
for business? - ANSWER---The actual and fictitious business names
must be registered with the commissioner
Which is an ACCURATE statement regarding dependent coverage
under a group insurance policy? - ANSWER---The coverage must not
exceed more than 100 percent of the coverage for the insured employee
According to CIC Section 1711, an organization ceases to exist as an
entity eligible to hold a license EXCEPT - ANSWER---upon the
termination of all contracts
As long as employment continues, which is the ONLY reason the
validity of a group life insurance policy can be contested? - ANSWER---
Non-payment of premiums after the policy has bee in force for two
years.
All of the following are TRUE about the rules regarding the sale of life
insurance and annuities to seniors age 65 or older EXCEPT - ANSWER-
--The agent, broker, or insurer is required to show a copy of their
insurance license with name, address, and phone number when
conducting business in the senior home
, CALIFORNIA PSI LIFE INSURANCE EXAM QUESTIONS
WITH CORRECT ANSWERS 2026/2027 UPDATED
What is a solicitor employed to do for a policy other than life? -
ANSWER---To aid a property and casualty agent or broker in
transacting insurance
All of the following are examples of representation except - ANSWER--
-It may be altered after the insurance is effected
Except as provided by sections 10203.5 and 10203.8 in the CIC, the
insurer shall provide which document to be delivered by the employer to
the employee? - ANSWER---An individual certification of insurance
What is the purpose of creating minimum underwriting standards for
those testing positive for Acquired Immune Deficiency Syndrome,
Human Immunodeficiency Virus or Aids Related Complex? -
ANSWER---To avoid discrimination between individuals in the same
rating class who have been diagnosed with the conditions of AIDS, ARC
or HIV
Which of the following is TRUE regarding continuing eduction
requirements of an agent or broker? - ANSWER---Any licensee shall
satisfactorily complete 24 hours of instruction prior to license renewal.
Which of the following provisions of free insurance offered as incentive
to purchase or rent property is TRUE? - ANSWER---It requires a
separate charge or fee.
, CALIFORNIA PSI LIFE INSURANCE EXAM QUESTIONS
WITH CORRECT ANSWERS 2026/2027 UPDATED
Which is the maximum fine for a person who transacts insurance
without a valid license? - ANSWER---$50,000 and/or imprisonment for
a period not exceeding one year.
Which of the following is TRUE regarding non-admitted insurers? -
ANSWER---Acting as an agent for a nonadmitted insurer is considered a
misdemeanor.
A policy shall specify all of the following EXCEPT - ANSWER---The
method in which the coverage amount was calculated
How long does an employee in a group insurance policy have to exercise
the conversion privilege after employment is terminated? - ANSWER---
31 days to use the conversion privilege and begin an individual life
insurance policy
Which group of people is offered additional protection by the Unfair
Practices Act that regulates trade practices in the business of insurance?
- ANSWER---Survivors of the Holocaust
Which of the following is TRUE regarding advertisements or printed
matter used by an agent or broker? - ANSWER---The printer material
must accurately show the relationship between the agent or broker and
the agency.
