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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!!
Admitted Insurance Company vs. Non-Admitted Insurance Company - ( answers)An admitted insurance
company is authorized to 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 - ( answers)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 - ( answers)One party writes the contract without inout from the other party on a
"take-it-or-leave-it" basis
Aleatory Contract - ( answers)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 - ( answers)An agreement to pay on behalf of another party under specified
circumstances
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Unilateral Contract - ( answers)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 - ( answers)1) Competent Parties
2) Legal Purpose
3) Agreement (offer and acceptance)
4) Consideration
Preferred Risks vs Standard Risks - ( answers)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
Human Life Value Approach vs. Needs Analysis Approach - ( answers)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
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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)
Waiver of Premium - ( answers)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 - ( answers)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.
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!!
Admitted Insurance Company vs. Non-Admitted Insurance Company - ( answers)An admitted insurance
company is authorized to 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 - ( answers)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 - ( answers)One party writes the contract without inout from the other party on a
"take-it-or-leave-it" basis
Aleatory Contract - ( answers)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 - ( answers)An agreement to pay on behalf of another party under specified
circumstances
, 2
Unilateral Contract - ( answers)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 - ( answers)1) Competent Parties
2) Legal Purpose
3) Agreement (offer and acceptance)
4) Consideration
Preferred Risks vs Standard Risks - ( answers)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
Human Life Value Approach vs. Needs Analysis Approach - ( answers)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
, 3
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)
Waiver of Premium - ( answers)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 - ( answers)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.
