CA PSI SITE LIFE ACCIDENT AND HEALTH OR SICKNESS EXAM (LIFE
AGENT) LATEST 2025 REAL EXAM COMPLETE 110+ QUESTIONS AND
CORRECT DETAILS (VERIFIED ANSWERS) |ALREADY GRADED A+
Admitted Insurance Company vs. Non-Admitted Insurance Company -
ANSWER-)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 -
ANSWER-)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 -
ANSWER-)One party writes the contract without inout from the other party on a "take-it-
or-leave-it" basis
Aleatory Contract -
ANSWER-)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 -
ANSWER-)An agreement to pay on behalf of another party under specified
circumstances
Unilateral Contract -
ANSWER-)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 -
ANSWER-)1) Competent Parties
2) Legal Purpose
3) Agreement (offer and acceptance)
4) Consideration
Preferred Risks vs Standard Risks -
,ANSWER-)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 -
ANSWER-)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
ANSWER-)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
ANSWER-)One party writes the contract without inout from the other party on a "take-it-
or-leave-it" basis
ANSWER-)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.
ANSWER-)An agreement to pay on behalf of another party under specified
circumstances
ANSWER-)Only one party is legally bound to the contractual obligations after the
premium is paid to the insurer
ANSWER-)1) Competent Parties
5) Legal Purpose
6) Agreement (offer and acceptance)
7) Consideration
ANSWER-)Standard Risks are individuals who have the same health, habits, sex/gender,
and occupational characteristics as those reflected in the mortality table
AGENT) LATEST 2025 REAL EXAM COMPLETE 110+ QUESTIONS AND
CORRECT DETAILS (VERIFIED ANSWERS) |ALREADY GRADED A+
Admitted Insurance Company vs. Non-Admitted Insurance Company -
ANSWER-)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 -
ANSWER-)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 -
ANSWER-)One party writes the contract without inout from the other party on a "take-it-
or-leave-it" basis
Aleatory Contract -
ANSWER-)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 -
ANSWER-)An agreement to pay on behalf of another party under specified
circumstances
Unilateral Contract -
ANSWER-)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 -
ANSWER-)1) Competent Parties
2) Legal Purpose
3) Agreement (offer and acceptance)
4) Consideration
Preferred Risks vs Standard Risks -
,ANSWER-)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 -
ANSWER-)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
ANSWER-)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
ANSWER-)One party writes the contract without inout from the other party on a "take-it-
or-leave-it" basis
ANSWER-)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.
ANSWER-)An agreement to pay on behalf of another party under specified
circumstances
ANSWER-)Only one party is legally bound to the contractual obligations after the
premium is paid to the insurer
ANSWER-)1) Competent Parties
5) Legal Purpose
6) Agreement (offer and acceptance)
7) Consideration
ANSWER-)Standard Risks are individuals who have the same health, habits, sex/gender,
and occupational characteristics as those reflected in the mortality table
