CA LIFE – PSI Exam Questions With 10% Correct Answers |Updated 2025/2026

CA LIFE – PSI Exam Questions With 10% Correct Answers |Updated 2025/2026 A participating company is also referred to as which type of insurer? - answer-Mutual insurer An insurer owned by its policyholders, is called a - answer-Mutual insurer What is a participating life insurance policy? - answer-Contract that allows the policyowner to receive a share of surplus in the form of policy dividends An insurer enter into a contract with a third-party to ensure itself against losses from insurance policies it issues. What is this agreement called? - answer-Reinsurance John owns an insurance company that gives him the right to share and then sure surplus. What kind of policy is this? - answer-Participating Which of the following is not a characteristic of reinsurance? - answer-Increases the unearned premium reserved Which of the following is not a benefit of insurance? - answer-Losses due to fraud are eliminated When a mutual insurer becomes a stock company, the process is called - answer-Demutualization Which of the following is a contract that involves one party which indemnifies another one a loss arises from an unknown event? - answer-Insurance policy Which of the following is an insurer established by a parent company's loss exposure's? - answer-Captive insurersWhich of the following is not considered to be a definition for the term "loss"? - answer-Probability that an event will occur Which of the following is not considered a definition of a risk? - answer-The cause of loss