CA PSI SITE LIFE ACCIDENT AND HEALTH OR
SICKNESS EXAM (LIFE AGENT) LATEST 2025/2026
REAL EXAM COMPLETE 200 QUESTIONS AND
CORRECT DETAILS (VERIFIED ANSWERS) |ALREADY
GRADED A+
Questions:1
What is considered to be the primary reason for buying life insurance?
Provide death benefits
Provide living benefits
Provide money for college
Provide money for retirement - ANSWER-Provide death benefits
Questions:2
Which of the following is NOT considered advertising?
An illustration
A sales presentation
Direct mailing from an agency
A rating from a rating service company, such as A.M. Best - ANSWER-A
rating from a rating service company, such as A.M. Best
1|Page
,Questions:3
A type of insurer that is owned by its policyowners is called
stock
domestic
in-house
mutual - ANSWER-mutual
Questions:4
ABC Insurance Company transfers part of their risk to XYZ Insurance
Company. This situation is called
conservation
reciprocity
reinsurance
risk transfer - ANSWER-reinsurance
Questions:5
What kind of life insurance policy issued by a mutual insurer provides a
return of divisible surplus?
straight life insurance policy
nonparticipating life insurance policy
2|Page
,participating life insurance policy
divisible surplus life insurance policy - ANSWER-participating life
insurance policy
Questions:6
A nonparticipating policy will
provide tax advantages
provide a return of premium
give policyowners special privileges
not pay dividends - ANSWER-not pay dividends
Questions:7
Karen is a producer who has obtained personal information about a
client without having a legitimate reason to do so. Under the McCarran-
Ferguson Act, what is the minimum penalty for this?
$15,000
$0
$10,000
$5,000 - ANSWER-$10,000
3|Page
, Questions:8
The Do Not Call Registry offers exemptions for calls placed from all of
the following EXCEPT
political organizations
surveys
charities
insurance sales calls - ANSWER-insurance sales calls
Questions:9
The Fair Credit and Reporting Act's main purpose is to
protect insurers from an applicant's misrepresentation
assist in the underwriting of insurance policies
assist an insurer in determining an applicant's creditworthiness
protect consumers with guidelines regarding credit reporting and
distribution - ANSWER-protect consumers with guidelines regarding
credit reporting and distribution
Questions:10
Why are dividends from a mutual insurer not subject to taxation?
Because dividends are considered to be a return of premium
4|Page
SICKNESS EXAM (LIFE AGENT) LATEST 2025/2026
REAL EXAM COMPLETE 200 QUESTIONS AND
CORRECT DETAILS (VERIFIED ANSWERS) |ALREADY
GRADED A+
Questions:1
What is considered to be the primary reason for buying life insurance?
Provide death benefits
Provide living benefits
Provide money for college
Provide money for retirement - ANSWER-Provide death benefits
Questions:2
Which of the following is NOT considered advertising?
An illustration
A sales presentation
Direct mailing from an agency
A rating from a rating service company, such as A.M. Best - ANSWER-A
rating from a rating service company, such as A.M. Best
1|Page
,Questions:3
A type of insurer that is owned by its policyowners is called
stock
domestic
in-house
mutual - ANSWER-mutual
Questions:4
ABC Insurance Company transfers part of their risk to XYZ Insurance
Company. This situation is called
conservation
reciprocity
reinsurance
risk transfer - ANSWER-reinsurance
Questions:5
What kind of life insurance policy issued by a mutual insurer provides a
return of divisible surplus?
straight life insurance policy
nonparticipating life insurance policy
2|Page
,participating life insurance policy
divisible surplus life insurance policy - ANSWER-participating life
insurance policy
Questions:6
A nonparticipating policy will
provide tax advantages
provide a return of premium
give policyowners special privileges
not pay dividends - ANSWER-not pay dividends
Questions:7
Karen is a producer who has obtained personal information about a
client without having a legitimate reason to do so. Under the McCarran-
Ferguson Act, what is the minimum penalty for this?
$15,000
$0
$10,000
$5,000 - ANSWER-$10,000
3|Page
, Questions:8
The Do Not Call Registry offers exemptions for calls placed from all of
the following EXCEPT
political organizations
surveys
charities
insurance sales calls - ANSWER-insurance sales calls
Questions:9
The Fair Credit and Reporting Act's main purpose is to
protect insurers from an applicant's misrepresentation
assist in the underwriting of insurance policies
assist an insurer in determining an applicant's creditworthiness
protect consumers with guidelines regarding credit reporting and
distribution - ANSWER-protect consumers with guidelines regarding
credit reporting and distribution
Questions:10
Why are dividends from a mutual insurer not subject to taxation?
Because dividends are considered to be a return of premium
4|Page
