PSI CA Life, Accident, and Health License Exam 2025
1. As a life insurance agent, you know that when courts Entire contract and appli-
evaluate a contract to determine the parties' inten- cation
tions, they take into account specific documents.
Which documents are considered in this process?
2. According to the California Insurance Code, what is A contract
"insurance"?
3. In a life insurance contract, what term describes the Entire Contract Provison
combined policy and application as a comprehensive
agreement between the policyowner and the insurer?
4. Which whole life policy premium type is the most com- continuous premium
mon?
5. All life insurance and health insurance contracts con- Representations
tain all of the following EXCEPT
6. An insurer that has been found using higher rates unfair discrimination
based on race,religion, or ethnicity is said to be en-
gaging in
7. The California Insurance Code defines "policy" as a(n) written contract
8. what is the definition of premium? Money an insured pays an
insurer to obtain the ben-
efits provided in the policy.
9. What is the primary source of information used by Application
insurers to assess risk and determine premiums in
life, accident, and health insurance?
10. How does an "admitted" person differ from an "non- An "admitted" person has
admitted" person, as it pertains to insurance? the right to transact insur-
, PSI CA Life, Accident, and Health License Exam 2025
ance business within the
state, while a "nonadmit-
ted" person is not entitled
to this action.
11. As a broker, you are assisting your client in finding admitted insurer.
appropriate insurance coverage. In order to ensure
that the company offering the insurance is authorized
to do so in their state, you should look for a(an)
12. An insurer entitled to transact business by complying admitted insurer.
with the California Insurance Code is known as a:
13. A Canadian insurer that benefits shareholders and is Admitted Alien Stock Com-
approved to operate in a U.S. state would be classified pany
as which type of insurer?
14. Which is the difference between participating and Participating policies pay
non-participating policies? dividends while non-par-
ticipating policies do not.
15. John owns an insurance company that gives him the Participating
right to share and then share surplus. What kind of
policy is this?
16. When a mutual insurer becomes a stock company, the Demutualization
process is called
17. A person who asserts a right of recovery under an claimant
insurance policy is called a
18. In California, an insurer organized under the state foreign insurer
laws of Oregon is called a(n)
, PSI CA Life, Accident, and Health License Exam 2025
19. Under the California Insurance Code, a licensee's li- The same size print as the
cense number must be printed at what size on all price licensee's phone number,
quotes, business cards, and printed material? fax number or address
20. As an insurance agent, you are convicted of a crime 18 USC Sections 1033 and
involving dishonesty or breach of trust. To continue 1034
working in the industry, you must obtain written con-
sent from an insurance regulatory official according
to which federal law?
21. According to the California insurance code, the com- name is the licensee's ac-
missioner can disapprove a licensee's request to use tual name
a fictitious name for any of the following reasons EX-
CEPT that the
22. all of the following are requirements of contract EX- there must be equal con-
CEPT sideration between the
parties
23. If an insurer must have its rates accepted by the in- prior approval
surance Department prior to using them, the insurer
would be operating in which of the following types of
jurisdictions?
24. it is federal offense for an insurance agent to do all of misrepresent facts on an
the following EXCEPT insurance application
25. How often MUST an insurer file the National Asso- annually
ciation of Insurance Commissioners (NAIC) financial
statement?
26. $5,000
, PSI CA Life, Accident, and Health License Exam 2025
According to the California Insurance Code, what is
the maximum penalty per violation for anyone who
unwilfully commits an unfair method of competition?
27. Section 1729.2 of the California Insurance Code re- 30
quires insurance producer applications and licensees
to notify the Insurance Commissioner in writing, with-
in ___days of charges in background information after
an application has been submitted or a license has
been issued.
28. How long must life agents keep the transaction 5 years
records?
29. What is required after a life agent sells an insurance Notice of appointment
policy to an applicant without being appointed by the must be submitted to the
insurer? Commissioner
30. Anyone employed in California to assist an insurance solicitor
agent in transacting insurance is called an insurance
31. The California insurance code has authorized stan- Lance Manyon, CLU
dards for names used by life insurance agents. Which
of the following, if any, are automatically acceptable
for Lance Manyon, a holder of the CLU designation?
32. As authorized by the California Insurance Code, the Mary Brown, CLU Insur-
Insurance Commissioner has provided standards for ance services
names used by life insurance agents. Under these
standards which, if any, of the following are automat-
ically acceptable for Mary Brown, a holder of the CLU
designation?
1. As a life insurance agent, you know that when courts Entire contract and appli-
evaluate a contract to determine the parties' inten- cation
tions, they take into account specific documents.
Which documents are considered in this process?
2. According to the California Insurance Code, what is A contract
"insurance"?
3. In a life insurance contract, what term describes the Entire Contract Provison
combined policy and application as a comprehensive
agreement between the policyowner and the insurer?
4. Which whole life policy premium type is the most com- continuous premium
mon?
5. All life insurance and health insurance contracts con- Representations
tain all of the following EXCEPT
6. An insurer that has been found using higher rates unfair discrimination
based on race,religion, or ethnicity is said to be en-
gaging in
7. The California Insurance Code defines "policy" as a(n) written contract
8. what is the definition of premium? Money an insured pays an
insurer to obtain the ben-
efits provided in the policy.
9. What is the primary source of information used by Application
insurers to assess risk and determine premiums in
life, accident, and health insurance?
10. How does an "admitted" person differ from an "non- An "admitted" person has
admitted" person, as it pertains to insurance? the right to transact insur-
, PSI CA Life, Accident, and Health License Exam 2025
ance business within the
state, while a "nonadmit-
ted" person is not entitled
to this action.
11. As a broker, you are assisting your client in finding admitted insurer.
appropriate insurance coverage. In order to ensure
that the company offering the insurance is authorized
to do so in their state, you should look for a(an)
12. An insurer entitled to transact business by complying admitted insurer.
with the California Insurance Code is known as a:
13. A Canadian insurer that benefits shareholders and is Admitted Alien Stock Com-
approved to operate in a U.S. state would be classified pany
as which type of insurer?
14. Which is the difference between participating and Participating policies pay
non-participating policies? dividends while non-par-
ticipating policies do not.
15. John owns an insurance company that gives him the Participating
right to share and then share surplus. What kind of
policy is this?
16. When a mutual insurer becomes a stock company, the Demutualization
process is called
17. A person who asserts a right of recovery under an claimant
insurance policy is called a
18. In California, an insurer organized under the state foreign insurer
laws of Oregon is called a(n)
, PSI CA Life, Accident, and Health License Exam 2025
19. Under the California Insurance Code, a licensee's li- The same size print as the
cense number must be printed at what size on all price licensee's phone number,
quotes, business cards, and printed material? fax number or address
20. As an insurance agent, you are convicted of a crime 18 USC Sections 1033 and
involving dishonesty or breach of trust. To continue 1034
working in the industry, you must obtain written con-
sent from an insurance regulatory official according
to which federal law?
21. According to the California insurance code, the com- name is the licensee's ac-
missioner can disapprove a licensee's request to use tual name
a fictitious name for any of the following reasons EX-
CEPT that the
22. all of the following are requirements of contract EX- there must be equal con-
CEPT sideration between the
parties
23. If an insurer must have its rates accepted by the in- prior approval
surance Department prior to using them, the insurer
would be operating in which of the following types of
jurisdictions?
24. it is federal offense for an insurance agent to do all of misrepresent facts on an
the following EXCEPT insurance application
25. How often MUST an insurer file the National Asso- annually
ciation of Insurance Commissioners (NAIC) financial
statement?
26. $5,000
, PSI CA Life, Accident, and Health License Exam 2025
According to the California Insurance Code, what is
the maximum penalty per violation for anyone who
unwilfully commits an unfair method of competition?
27. Section 1729.2 of the California Insurance Code re- 30
quires insurance producer applications and licensees
to notify the Insurance Commissioner in writing, with-
in ___days of charges in background information after
an application has been submitted or a license has
been issued.
28. How long must life agents keep the transaction 5 years
records?
29. What is required after a life agent sells an insurance Notice of appointment
policy to an applicant without being appointed by the must be submitted to the
insurer? Commissioner
30. Anyone employed in California to assist an insurance solicitor
agent in transacting insurance is called an insurance
31. The California insurance code has authorized stan- Lance Manyon, CLU
dards for names used by life insurance agents. Which
of the following, if any, are automatically acceptable
for Lance Manyon, a holder of the CLU designation?
32. As authorized by the California Insurance Code, the Mary Brown, CLU Insur-
Insurance Commissioner has provided standards for ance services
names used by life insurance agents. Under these
standards which, if any, of the following are automat-
ically acceptable for Mary Brown, a holder of the CLU
designation?
