CA PSI Site - Life Examination
Questions with 100% Correct Answers
what is meant by referring to an insurance policy as a unilateral contract?
Correct Answer: only one party makes a legal enforceable promise
when must insurance records of insurance agents and brokers be made
available to the Insurance Commissioner? Correct Answer: at all times
any situation that presents the possibility of a loss is known as what Correct
Answer: a loss exposure
which of the following information is not required to be communicated in a life
insurance contract? Correct Answer: personal judgement
the direct distribution of insurance utilizes all of the following to promote the sale
of insurance EXCEPT Correct Answer: telephone call from an agent
a contract in which one part promises to identify another against loss that arises
from an unknown event is Correct Answer: an insurance policy
all of the occurrences listed below are examples of an insurable event as
defined by the California insurance code EXCEPT Correct Answer: an insured
suffers financial loss in the state lottery
all of the following statements about aleatory contracts are true EXCEPT Correct
Answer: the insured and insurer contribute equally to the contract
all of the following would be considered unfair trade practices EXCEPT Correct
Answer: committing any act of discrimination whether it be deemed fair or
unfair
,As authorized by the California Insurance Code, the Insurance Commissioner
has provided standards for names used by life insurance agents. Under these
standards which, if any, of the following are automatically acceptable for Mary
Brown, a holder of the CLU designation? Correct Answer: Mary brown insurance
servies
a contract of indemnity is one in which Correct Answer: One party is restored to
the same financial position the party was in before the loss occurred
In insurance terminology, "indemnity" means Correct Answer: make whole
As defined in the California insurance Code, "insurance" is a Correct Answer:
contract
What would a person be guilty of who refuses to deliver any books, records, or
assets to the commissioner once a seizure order has been executed? Correct
Answer: a misdemeanor
An agent who is acting as an insurance agent, broker, solicitor, life agent,
accident and health, or bail agent acts in which capacity when handling
premiums or return premiums for an insured? Correct Answer: fiduciary
which of the following statement regarding risk is TRUE Correct Answer: only pure
risks are insurable
The purchase of an insurance policy may accomplish all of the following for the
insured EXCEPT Correct Answer: the elimination of risk
Insureds are entitled to recover an amount NOT greater than the amount of
their loss under the principle of Correct Answer: indemnity
what rule is used to determine the importance of a representation? Correct
Answer: the materiality of concealment
, the required contents of a policy include all of the following EXCEPT Correct
Answer: the possibility of loss
all of the following are characteristics of reinsurance EXCEPT Correct Answer:
increases the unearned premium reserve
according to the California insurance code, an insurance policy must specify all
of the following EXEPT the Correct Answer: financial rating of the insurer
All of the following qualify as "background information" as defined in Section
1729.2 of the California Insurance Code, EXCEPT Correct Answer: misdemeanor
charges filed, not resulting in conviction
Loss retention is an effective risk management technique when all of the
following conditions exist EXCEPT the Correct Answer: probability of loss is
unknown
a situation in which there is a possibility of loss or gain is a Correct Answer:
speculative risk
Why is having a large number of similar exposure units important to insurers?
Correct Answer: the greater the number insured, the more accurately the
insurer can predict losses and set appropriate premiums
all of the following are benefits of insurance EXCEPT it Correct Answer: eliminates
fraudulent losses
who are members of the medical information bureau Correct Answer: Life and
health insurers
the process by which am insurer decided whether to issue requested insurance
is called Correct Answer: underwriting
Questions with 100% Correct Answers
what is meant by referring to an insurance policy as a unilateral contract?
Correct Answer: only one party makes a legal enforceable promise
when must insurance records of insurance agents and brokers be made
available to the Insurance Commissioner? Correct Answer: at all times
any situation that presents the possibility of a loss is known as what Correct
Answer: a loss exposure
which of the following information is not required to be communicated in a life
insurance contract? Correct Answer: personal judgement
the direct distribution of insurance utilizes all of the following to promote the sale
of insurance EXCEPT Correct Answer: telephone call from an agent
a contract in which one part promises to identify another against loss that arises
from an unknown event is Correct Answer: an insurance policy
all of the occurrences listed below are examples of an insurable event as
defined by the California insurance code EXCEPT Correct Answer: an insured
suffers financial loss in the state lottery
all of the following statements about aleatory contracts are true EXCEPT Correct
Answer: the insured and insurer contribute equally to the contract
all of the following would be considered unfair trade practices EXCEPT Correct
Answer: committing any act of discrimination whether it be deemed fair or
unfair
,As authorized by the California Insurance Code, the Insurance Commissioner
has provided standards for names used by life insurance agents. Under these
standards which, if any, of the following are automatically acceptable for Mary
Brown, a holder of the CLU designation? Correct Answer: Mary brown insurance
servies
a contract of indemnity is one in which Correct Answer: One party is restored to
the same financial position the party was in before the loss occurred
In insurance terminology, "indemnity" means Correct Answer: make whole
As defined in the California insurance Code, "insurance" is a Correct Answer:
contract
What would a person be guilty of who refuses to deliver any books, records, or
assets to the commissioner once a seizure order has been executed? Correct
Answer: a misdemeanor
An agent who is acting as an insurance agent, broker, solicitor, life agent,
accident and health, or bail agent acts in which capacity when handling
premiums or return premiums for an insured? Correct Answer: fiduciary
which of the following statement regarding risk is TRUE Correct Answer: only pure
risks are insurable
The purchase of an insurance policy may accomplish all of the following for the
insured EXCEPT Correct Answer: the elimination of risk
Insureds are entitled to recover an amount NOT greater than the amount of
their loss under the principle of Correct Answer: indemnity
what rule is used to determine the importance of a representation? Correct
Answer: the materiality of concealment
, the required contents of a policy include all of the following EXCEPT Correct
Answer: the possibility of loss
all of the following are characteristics of reinsurance EXCEPT Correct Answer:
increases the unearned premium reserve
according to the California insurance code, an insurance policy must specify all
of the following EXEPT the Correct Answer: financial rating of the insurer
All of the following qualify as "background information" as defined in Section
1729.2 of the California Insurance Code, EXCEPT Correct Answer: misdemeanor
charges filed, not resulting in conviction
Loss retention is an effective risk management technique when all of the
following conditions exist EXCEPT the Correct Answer: probability of loss is
unknown
a situation in which there is a possibility of loss or gain is a Correct Answer:
speculative risk
Why is having a large number of similar exposure units important to insurers?
Correct Answer: the greater the number insured, the more accurately the
insurer can predict losses and set appropriate premiums
all of the following are benefits of insurance EXCEPT it Correct Answer: eliminates
fraudulent losses
who are members of the medical information bureau Correct Answer: Life and
health insurers
the process by which am insurer decided whether to issue requested insurance
is called Correct Answer: underwriting
