California PSI Life, Accident, and Health Agent
Examination – Life Agent License (2025) | Complete Exam
Verified Questions and Detailed Answers
Assume two people apply for life insurance with exactly the same monthly premiums. One
individual buys a whole life policy, and the other, a 10-year renewable term plan. Both are
standard risks with no difference in their age or health rating. Select the statement from below
which is false.
C. The 10-year renewable term contract will have a premium increase every 10 years while the
whole life policy premium remains level.
D. The whole life policy will pay a higher amount to the beneficiary should the insured die
within the first 10 years
D
An annuity which may be used to help fund retirement in a few years maintains a "separate
account". the owner purchases "accumulation units". This is called a ____ annuity.
Variable
According to the terms of the suicide clause found in a life insurance policy, if an insured
commits suicide 6 months after the policy is issued, what will the insurer do ?
Refund all the premiums paid
What regard to the tax treatment of the death benefit in life insurance is true?
Death benefits are exempt from taxation
A hospital confinement indemnity insurance policy pays:
A daily dollar benefit for each day the insured is confined to a hospital
Disability income insurance offers various riders to supplement benefits from these policies. The
Social Security rider:
Helps establish a limit for the amount of income benefits paid to an insured who will receive
substantial benefits that may or may not be paid from government programs.
Sam's insurance policy pays a dividend. the agent that sold Sam the policy refers to the
shareholders of the company as "participating", therefore it is a(n) ______________insurer.
Mutual
,All of the following are examples of the dividend options available on a whole life insurance
policy, except:
A. One-year term option
B. Application to reduce premium
C. Paid-up additions
D. Life income with period certain
D
A policy owner makes the last premium payment on his $250,000 non-par whole life policy
today. The owner is 70 years of age. When will the cash value reach $250,000.
A. About 13 years from now
B. The cash value is $250,000 today
C. Never, he didn't pay up to age 100
D. When he reaches the age of 100
D
Arnold and Bertha are married and work for different firms. Arnold has group health insurance
through his company that also insures Bertha. Likewise Bertha has group health insurance also
covering Arnold. Select the correct statement below about how benefits are affected by the
coordination of benefits provision in both plans.
A. If Bertha files a medical claim Arnold's company is considered secondary.
B. If Arnold files a medical claim Bertha's company is considered primary
C. First the secondary insurer will decide what it won't pay for which will dictate what the
primary insurer will pay
D. Since both Arnold and Bertha are covered by a group plan neither insurer will pay if the other
insurer is primary
D
All of the following are used in determining life insurance rates, except:
A. Investment and interest return
B. Insurance company expenses
C. Mortality expenses
D. Policy reserves
Policy Reserves
, In the California Insurance Code there is a definition that reads, in short, "....a person who, for a
fee, offers to advise any insured having any interest in life or disability insurance contracts..."
This is the definition of :
A. An insurance broker paid on a fee-for-service
B. A solicitor
C. A life and disability analyst
C
Disability income insurance pays a weekly or monthly income to replace a portion of the one's
lost salary due to an inability to work. When a disability income insurance application is
submitted, what reason might the underwritting department use to reject it ?
A. Insurers are willing to only accept applications with extremely small risks exposure.
B. Underwriters have to reject a certain number of applications per a certain number of approved
applications
C. Disability insurers have to eliminate applications that seem likely to have losses much more
frequently or much more severely than what the insurer's rates anticipate.
D. None of the above.
C
When any change in residence address occurs, every licensee and every applicant for a license
must notify the Commissioner _______________. (Select the most correct response)
A. Within 6 months after the move has taken place
B. Within 6 months before the license is to expire
C. 30 days before submitting a continuing education certificate.
D. Immediately
Immediately
To protect (subject to statutory limitations) life and health owners and insureds in the event of
impairment or insolvency of a member insurer. This is a description of:
A. Medi-Cal
B. The California Life and Health Insurance Guarantee Association
C. OBRA
D. None of the above
The California Life and Health Insurance Guarantee Association
Examination – Life Agent License (2025) | Complete Exam
Verified Questions and Detailed Answers
Assume two people apply for life insurance with exactly the same monthly premiums. One
individual buys a whole life policy, and the other, a 10-year renewable term plan. Both are
standard risks with no difference in their age or health rating. Select the statement from below
which is false.
C. The 10-year renewable term contract will have a premium increase every 10 years while the
whole life policy premium remains level.
D. The whole life policy will pay a higher amount to the beneficiary should the insured die
within the first 10 years
D
An annuity which may be used to help fund retirement in a few years maintains a "separate
account". the owner purchases "accumulation units". This is called a ____ annuity.
Variable
According to the terms of the suicide clause found in a life insurance policy, if an insured
commits suicide 6 months after the policy is issued, what will the insurer do ?
Refund all the premiums paid
What regard to the tax treatment of the death benefit in life insurance is true?
Death benefits are exempt from taxation
A hospital confinement indemnity insurance policy pays:
A daily dollar benefit for each day the insured is confined to a hospital
Disability income insurance offers various riders to supplement benefits from these policies. The
Social Security rider:
Helps establish a limit for the amount of income benefits paid to an insured who will receive
substantial benefits that may or may not be paid from government programs.
Sam's insurance policy pays a dividend. the agent that sold Sam the policy refers to the
shareholders of the company as "participating", therefore it is a(n) ______________insurer.
Mutual
,All of the following are examples of the dividend options available on a whole life insurance
policy, except:
A. One-year term option
B. Application to reduce premium
C. Paid-up additions
D. Life income with period certain
D
A policy owner makes the last premium payment on his $250,000 non-par whole life policy
today. The owner is 70 years of age. When will the cash value reach $250,000.
A. About 13 years from now
B. The cash value is $250,000 today
C. Never, he didn't pay up to age 100
D. When he reaches the age of 100
D
Arnold and Bertha are married and work for different firms. Arnold has group health insurance
through his company that also insures Bertha. Likewise Bertha has group health insurance also
covering Arnold. Select the correct statement below about how benefits are affected by the
coordination of benefits provision in both plans.
A. If Bertha files a medical claim Arnold's company is considered secondary.
B. If Arnold files a medical claim Bertha's company is considered primary
C. First the secondary insurer will decide what it won't pay for which will dictate what the
primary insurer will pay
D. Since both Arnold and Bertha are covered by a group plan neither insurer will pay if the other
insurer is primary
D
All of the following are used in determining life insurance rates, except:
A. Investment and interest return
B. Insurance company expenses
C. Mortality expenses
D. Policy reserves
Policy Reserves
, In the California Insurance Code there is a definition that reads, in short, "....a person who, for a
fee, offers to advise any insured having any interest in life or disability insurance contracts..."
This is the definition of :
A. An insurance broker paid on a fee-for-service
B. A solicitor
C. A life and disability analyst
C
Disability income insurance pays a weekly or monthly income to replace a portion of the one's
lost salary due to an inability to work. When a disability income insurance application is
submitted, what reason might the underwritting department use to reject it ?
A. Insurers are willing to only accept applications with extremely small risks exposure.
B. Underwriters have to reject a certain number of applications per a certain number of approved
applications
C. Disability insurers have to eliminate applications that seem likely to have losses much more
frequently or much more severely than what the insurer's rates anticipate.
D. None of the above.
C
When any change in residence address occurs, every licensee and every applicant for a license
must notify the Commissioner _______________. (Select the most correct response)
A. Within 6 months after the move has taken place
B. Within 6 months before the license is to expire
C. 30 days before submitting a continuing education certificate.
D. Immediately
Immediately
To protect (subject to statutory limitations) life and health owners and insureds in the event of
impairment or insolvency of a member insurer. This is a description of:
A. Medi-Cal
B. The California Life and Health Insurance Guarantee Association
C. OBRA
D. None of the above
The California Life and Health Insurance Guarantee Association
