PSI CA LIFE, ACCIDENT, AND HEALTH LICENSE EXAM 2026 SPRING SUMMER
PRACTICE QUESTIONS WITH ACCURATE SOLUTIONS
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
PRACTICE QUESTIONS WITH ACCURATE SOLUTIONS
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
