California PSI - Life Insurance Exam
2026 Questions and Answers
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 EXCEPT - 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 policy can be contested? - Correct answer-Non-payment of
premiums after the policy has bee in force for two years.
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,All of the following are TRUE about the rules regarding the sale of life insurance
and annuities to seniors 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 document 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 Acquired 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 the 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.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, 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
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
2026 Questions and Answers
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 EXCEPT - 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 policy can be contested? - Correct answer-Non-payment of
premiums after the policy has bee in force for two years.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,All of the following are TRUE about the rules regarding the sale of life insurance
and annuities to seniors 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 document 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 Acquired 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 the 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.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, 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
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
