CA PSI Life, Accident, and Health Agent Examination (Life Agent) Test Bank 2026 Page 1 2026-04-01
CA PSI Life, Accident, and
Health Agent Examination
(Life Agent) Test Bank 2026
1 of 57 Guidehttps://www.stuvia.com/dashboard!@_)#*)(@$)($@*($@)($@*_ 1 CA PSI Life, Accident, and Health Agent Examination (Life Agent) Test Bank 2026.pdf
,CA PSI Site - Life, Accident and Health Agent Examination (Life Agent) Page 2 2026-04-01
Terms in this set (118)
Admitted Insurance Company vs. Non-Admitted An admitted insurance company is authorized to transact insurance in
Insurance Company 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
2 of 57 2 CA PSI Site - Life, Accident and Health Agent Examination (Life Agent).pdf
,CA PSI Site - Life, Accident and Health Agent Examination (Life Agent) Page 3 2026-04-01
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
3 of 57 3 CA PSI Site - Life, Accident and Health Agent Examination (Life Agent).pdf
, CA PSI Site - Life, Accident and Health Agent Examination (Life Agent) Page 4 2026-04-01
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
4 of 57 4 CA PSI Site - Life, Accident and Health Agent Examination (Life Agent).pdf
CA PSI Life, Accident, and
Health Agent Examination
(Life Agent) Test Bank 2026
1 of 57 Guidehttps://www.stuvia.com/dashboard!@_)#*)(@$)($@*($@)($@*_ 1 CA PSI Life, Accident, and Health Agent Examination (Life Agent) Test Bank 2026.pdf
,CA PSI Site - Life, Accident and Health Agent Examination (Life Agent) Page 2 2026-04-01
Terms in this set (118)
Admitted Insurance Company vs. Non-Admitted An admitted insurance company is authorized to transact insurance in
Insurance Company 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
2 of 57 2 CA PSI Site - Life, Accident and Health Agent Examination (Life Agent).pdf
,CA PSI Site - Life, Accident and Health Agent Examination (Life Agent) Page 3 2026-04-01
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
3 of 57 3 CA PSI Site - Life, Accident and Health Agent Examination (Life Agent).pdf
, CA PSI Site - Life, Accident and Health Agent Examination (Life Agent) Page 4 2026-04-01
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
4 of 57 4 CA PSI Site - Life, Accident and Health Agent Examination (Life Agent).pdf
