Page 1 of 49
PSI LIFE INSURANCE EXAM LATEST REAL EXAM
QUESTIONS AND CORRECT ANSWERS | A-GRADE
2025
what is meant by referring to an insurance policy as a unilateral
contract? .....ANSWER.....Only one party makes a legally
enforceable promise
when must insurance records of insurance agents and brokers be
made available to the insurance Commissioner .....ANSWER.....At
all times
Any situation that presents the possibility of a loss is known as
.....ANSWER.....A loss exposure
Which of the following information is not required to be
communicated in a Life Insurance contract?
.....ANSWER.....Personal judgment
,Page 2 of 49
The direct distribution of insurance utilizes all of the following to
promote the sale of insurance EXCEPT .....ANSWER.....Telephone
call from an agent
A contract in which one party promises to indemnify another
against loss that arises from an unknown even is
.....ANSWER.....An insurance policy
All of the occurrences listed below area examples of an
insurable event as defined by the California insurance Code
EXCEPT .....ANSWER.....An insured suffers a financial loss in the
stat lottery
All of the following statements about aleatory contracts are true
EXCEPT .....ANSWER.....The insured and insurer contribute equally
to the contract
All of the following would be considered unfair trade practices
EXCEPT .....ANSWER.....Committing any act of discrimination
whether it be deemed fair or unfair
,Page 3 of 49
As authorized by the California Insurance Code, the Insurance
Commissioner has provided standard for names used by life
insurance agents. Under these standards which, if any, of these
following are automatically acceptable for Mary Brown, a
holder of the CLU designation? .....ANSWER.....Mary Brown
Insurance Services
A contract of indemnity is one in which .....ANSWER.....One party
is restored to the same financial position the party was in before
the loss occurred
In insurance terminology, "indemnity" means .....ANSWER.....make
whole
As defined in the California Insurance Code, "Insurance"
.....ANSWER.....is a 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? .....ANSWER.....A misdemeanor
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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? .....ANSWER.....Fiduciary
Which of the following statement regarding risk id TRUE?
.....ANSWER.....Only pure risks are insurable
The purchase of an insurance polity may accomplish all of the
following for the insured EXCEPT .....ANSWER.....The elimination
of risk
Insureds are entitled to recover an amount NOT greater than the
amount of their loss under the principle of
.....ANSWER.....Indemnity
What rule is used to determine the importance of a
representation? .....ANSWER.....The materiality of concealment
The requred contents of a policy included all of the following
EXCEPT .....ANSWER.....The probability of loss
PSI LIFE INSURANCE EXAM LATEST REAL EXAM
QUESTIONS AND CORRECT ANSWERS | A-GRADE
2025
what is meant by referring to an insurance policy as a unilateral
contract? .....ANSWER.....Only one party makes a legally
enforceable promise
when must insurance records of insurance agents and brokers be
made available to the insurance Commissioner .....ANSWER.....At
all times
Any situation that presents the possibility of a loss is known as
.....ANSWER.....A loss exposure
Which of the following information is not required to be
communicated in a Life Insurance contract?
.....ANSWER.....Personal judgment
,Page 2 of 49
The direct distribution of insurance utilizes all of the following to
promote the sale of insurance EXCEPT .....ANSWER.....Telephone
call from an agent
A contract in which one party promises to indemnify another
against loss that arises from an unknown even is
.....ANSWER.....An insurance policy
All of the occurrences listed below area examples of an
insurable event as defined by the California insurance Code
EXCEPT .....ANSWER.....An insured suffers a financial loss in the
stat lottery
All of the following statements about aleatory contracts are true
EXCEPT .....ANSWER.....The insured and insurer contribute equally
to the contract
All of the following would be considered unfair trade practices
EXCEPT .....ANSWER.....Committing any act of discrimination
whether it be deemed fair or unfair
,Page 3 of 49
As authorized by the California Insurance Code, the Insurance
Commissioner has provided standard for names used by life
insurance agents. Under these standards which, if any, of these
following are automatically acceptable for Mary Brown, a
holder of the CLU designation? .....ANSWER.....Mary Brown
Insurance Services
A contract of indemnity is one in which .....ANSWER.....One party
is restored to the same financial position the party was in before
the loss occurred
In insurance terminology, "indemnity" means .....ANSWER.....make
whole
As defined in the California Insurance Code, "Insurance"
.....ANSWER.....is a 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? .....ANSWER.....A misdemeanor
, Page 4 of 49
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? .....ANSWER.....Fiduciary
Which of the following statement regarding risk id TRUE?
.....ANSWER.....Only pure risks are insurable
The purchase of an insurance polity may accomplish all of the
following for the insured EXCEPT .....ANSWER.....The elimination
of risk
Insureds are entitled to recover an amount NOT greater than the
amount of their loss under the principle of
.....ANSWER.....Indemnity
What rule is used to determine the importance of a
representation? .....ANSWER.....The materiality of concealment
The requred contents of a policy included all of the following
EXCEPT .....ANSWER.....The probability of loss
