CALIFORNIA PSI LIFE INSURANCE EXAM
QUESTIONS WITH CORRECT ANSWERS
2026
When is a representation false? - CORRECT 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? -
CORRECT 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? -
CORRECT 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 EX
CEPT - CORRECT ANSWER -upon the termination of all contracts
As long as employment continues, which is the ONLY reason the validity of a group life insurance polic
y can be contested? - CORRECT 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 senio
rs age 65 or older EXCEPT - CORRECT 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
What is a solicitor employed to do for a policy other than life? - CORRECT ANSWER -
To aid a property and casualty agent or broker in transacting insurance
All of the following are examples of representation except - CORRECT 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 docum
ent to be delivered by the employer to the employee? - CORRECT ANSWER -
An individual certification of insurance
What is the purpose of creating minimum underwriting standards for those testing positive for Acquire
d Immune Deficiency Syndrome, Human Immunodeficiency Virus or Aids Related Complex? -
CORRECT ANSWER -
To avoid discrimination between individuals in the same rating class who have been diagnosed with th
e conditions of AIDS, ARC or HIV
Which of the following is TRUE regarding continuing eduction requirements of an agent or broker? -
CORRECT 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? - CORRECT ANSWER -It requires a separate charge or fee.
Which is the maximum fine for a person who transacts insurance without a valid license? -
CORRECT ANSWER -$50,000 and/or imprisonment for a period not exceeding one year.
Which of the following is TRUE regarding non-admitted insurers? - CORRECT ANSWER -
Acting as an agent for a nonadmitted insurer is considered a misdemeanor.
A policy shall specify all of the following EXCEPT - CORRECT 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? - CORRECT 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? - CORRECT ANSWER -Survivors of the Holocaust
QUESTIONS WITH CORRECT ANSWERS
2026
When is a representation false? - CORRECT 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? -
CORRECT 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? -
CORRECT 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 EX
CEPT - CORRECT ANSWER -upon the termination of all contracts
As long as employment continues, which is the ONLY reason the validity of a group life insurance polic
y can be contested? - CORRECT 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 senio
rs age 65 or older EXCEPT - CORRECT 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
What is a solicitor employed to do for a policy other than life? - CORRECT ANSWER -
To aid a property and casualty agent or broker in transacting insurance
All of the following are examples of representation except - CORRECT 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 docum
ent to be delivered by the employer to the employee? - CORRECT ANSWER -
An individual certification of insurance
What is the purpose of creating minimum underwriting standards for those testing positive for Acquire
d Immune Deficiency Syndrome, Human Immunodeficiency Virus or Aids Related Complex? -
CORRECT ANSWER -
To avoid discrimination between individuals in the same rating class who have been diagnosed with th
e conditions of AIDS, ARC or HIV
Which of the following is TRUE regarding continuing eduction requirements of an agent or broker? -
CORRECT 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? - CORRECT ANSWER -It requires a separate charge or fee.
Which is the maximum fine for a person who transacts insurance without a valid license? -
CORRECT ANSWER -$50,000 and/or imprisonment for a period not exceeding one year.
Which of the following is TRUE regarding non-admitted insurers? - CORRECT ANSWER -
Acting as an agent for a nonadmitted insurer is considered a misdemeanor.
A policy shall specify all of the following EXCEPT - CORRECT 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? - CORRECT 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? - CORRECT ANSWER -Survivors of the Holocaust
