PSI CA Life, Accident, and Health License Exam 2026-2027
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with verified detailed answers || || ||
As a life insurance agent, you know that when courts evaluate a contract to determine the
|| || || || || || || || || || || || || || || ||
parties' intentions, they take into account specific documents. Which documents are
|| || || || || || || || || || ||
considered in this process? || || ||
Entire contract and application || || ||
|| || ||
According to the California Insurance Code, what is "insurance"? || || || || || || || ||
A contract ||
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In a life insurance contract, what term describes the combined policy and application as a
|| || || || || || || || || || || || || || ||
comprehensive agreement between the policyowner and the insurer? || || || || || || ||
Entire Contract Provison || ||
|| || ||
Which whole life policy premium type is the most common?
|| || || || || || || || ||
continuous premium ||
All life insurance and health insurance contracts contain all of the following EXCEPT
|| || || || || || || || || || || ||
Representations
|| || ||
,An insurer that has been found using higher rates based on race,religion, or ethnicity is said
|| || || || || || || || || || || || || || ||
to be engaging in
|| || || ||
unfair discrimination ||
|| || ||
The California Insurance Code defines "policy" as a(n)
|| || || || || || ||
written contract ||
|| || ||
what is the definition of premium?
|| || || || ||
Money an insured pays an insurer to obtain the benefits provided in the policy.
|| || || || || || || || || || || || ||
What is the primary source of information used by insurers to assess risk and determine
|| || || || || || || || || || || || || || ||
premiums in life, accident, and health insurance? || || || || || ||
Application
|| || ||
How does an "admitted" person differ from an "nonadmitted" person, as it pertains to
|| || || || || || || || || || || || || ||
insurance?
An "admitted" person has the right to transact insurance business within the state, while a
|| || || || || || || || || || || || || || ||
"nonadmitted" person is not entitled to this action. || || || || || || ||
|| || ||
,As a broker, you are assisting your client in finding appropriate insurance coverage. In order
|| || || || || || || || || || || || || ||
to ensure that the company offering the insurance is authorized to do so in their state, you
|| || || || || || || || || || || || || || || || || ||
should look for a(an) || || ||
admitted insurer. ||
|| || ||
An insurer entitled to transact business by complying with the California Insurance Code is
|| || || || || || || || || || || || || ||
known as a: || ||
admitted insurer. ||
A Canadian insurer that benefits shareholders and is approved to operate in a U.S. state
|| || || || || || || || || || || || || || ||
would be classified as which type of insurer?
|| || || || || || ||
Admitted Alien Stock Company || || ||
|| || ||
Which is the difference between participating and non-participating policies?
|| || || || || || || ||
Participating policies pay dividends while non-participating policies do not.
|| || || || || || || ||
|| || ||
John owns an insurance company that gives him the right to share and then share surplus.
|| || || || || || || || || || || || || || || ||
What kind of policy is this? || || || || ||
Participating
|| || ||
, When a mutual insurer becomes a stock company, the process is called
|| || || || || || || || || || ||
Demutualization
|| || ||
A person who asserts a right of recovery under an insurance policy is called a
|| || || || || || || || || || || || || ||
claimant
|| || ||
In California, an insurer organized under the state laws of Oregon is called a(n)
|| || || || || || || || || || || || ||
foreign insurer ||
|| || ||
Under the California Insurance Code, a licensee's license number must be printed at what
|| || || || || || || || || || || || || ||
size on all price quotes, business cards, and printed material?
|| || || || || || || || ||
The same size print as the licensee's phone number, fax number or address
|| || || || || || || || || || || ||
|| || ||
As an insurance agent, you are convicted of a crime involving dishonesty or breach of trust.
|| || || || || || || || || || || || || || || ||
To continue working in the industry, you must obtain written consent from an insurance
|| || || || || || || || || || || || || ||
regulatory official according to which federal law? || || || || || ||
18 USC Sections 1033 and 1034
|| || || || ||
|| || ||
|| || || || || || || || ||
with verified detailed answers || || ||
As a life insurance agent, you know that when courts evaluate a contract to determine the
|| || || || || || || || || || || || || || || ||
parties' intentions, they take into account specific documents. Which documents are
|| || || || || || || || || || ||
considered in this process? || || ||
Entire contract and application || || ||
|| || ||
According to the California Insurance Code, what is "insurance"? || || || || || || || ||
A contract ||
|| || ||
In a life insurance contract, what term describes the combined policy and application as a
|| || || || || || || || || || || || || || ||
comprehensive agreement between the policyowner and the insurer? || || || || || || ||
Entire Contract Provison || ||
|| || ||
Which whole life policy premium type is the most common?
|| || || || || || || || ||
continuous premium ||
All life insurance and health insurance contracts contain all of the following EXCEPT
|| || || || || || || || || || || ||
Representations
|| || ||
,An insurer that has been found using higher rates based on race,religion, or ethnicity is said
|| || || || || || || || || || || || || || ||
to be engaging in
|| || || ||
unfair discrimination ||
|| || ||
The California Insurance Code defines "policy" as a(n)
|| || || || || || ||
written contract ||
|| || ||
what is the definition of premium?
|| || || || ||
Money an insured pays an insurer to obtain the benefits provided in the policy.
|| || || || || || || || || || || || ||
What is the primary source of information used by insurers to assess risk and determine
|| || || || || || || || || || || || || || ||
premiums in life, accident, and health insurance? || || || || || ||
Application
|| || ||
How does an "admitted" person differ from an "nonadmitted" person, as it pertains to
|| || || || || || || || || || || || || ||
insurance?
An "admitted" person has the right to transact insurance business within the state, while a
|| || || || || || || || || || || || || || ||
"nonadmitted" person is not entitled to this action. || || || || || || ||
|| || ||
,As a broker, you are assisting your client in finding appropriate insurance coverage. In order
|| || || || || || || || || || || || || ||
to ensure that the company offering the insurance is authorized to do so in their state, you
|| || || || || || || || || || || || || || || || || ||
should look for a(an) || || ||
admitted insurer. ||
|| || ||
An insurer entitled to transact business by complying with the California Insurance Code is
|| || || || || || || || || || || || || ||
known as a: || ||
admitted insurer. ||
A Canadian insurer that benefits shareholders and is approved to operate in a U.S. state
|| || || || || || || || || || || || || || ||
would be classified as which type of insurer?
|| || || || || || ||
Admitted Alien Stock Company || || ||
|| || ||
Which is the difference between participating and non-participating policies?
|| || || || || || || ||
Participating policies pay dividends while non-participating policies do not.
|| || || || || || || ||
|| || ||
John owns an insurance company that gives him the right to share and then share surplus.
|| || || || || || || || || || || || || || || ||
What kind of policy is this? || || || || ||
Participating
|| || ||
, When a mutual insurer becomes a stock company, the process is called
|| || || || || || || || || || ||
Demutualization
|| || ||
A person who asserts a right of recovery under an insurance policy is called a
|| || || || || || || || || || || || || ||
claimant
|| || ||
In California, an insurer organized under the state laws of Oregon is called a(n)
|| || || || || || || || || || || || ||
foreign insurer ||
|| || ||
Under the California Insurance Code, a licensee's license number must be printed at what
|| || || || || || || || || || || || || ||
size on all price quotes, business cards, and printed material?
|| || || || || || || || ||
The same size print as the licensee's phone number, fax number or address
|| || || || || || || || || || || ||
|| || ||
As an insurance agent, you are convicted of a crime involving dishonesty or breach of trust.
|| || || || || || || || || || || || || || || ||
To continue working in the industry, you must obtain written consent from an insurance
|| || || || || || || || || || || || || ||
regulatory official according to which federal law? || || || || || ||
18 USC Sections 1033 and 1034
|| || || || ||
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