CA LIFE EXAM - PSI EXAM QUESTIONS

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CA LIFE EXAM - PSI EXAM QUESTIONS

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: What determines the Social Security normal retirement age?

Answer:

Year in which worker was born Question 2: Which of the following is any situation that presents the possibility of a loss?

Answer:

Loss Question 3: A beneficiary receives only the death benefit earnings in which settlement option?

Answer:

Interest option Question 4: Insurance premium is determined by each of the following factors EXCEPT

Answer:

liquidity

Question 5: How is a life insurance policy dividend legally defined?

Answer:

A return of excess premium and non-taxable

Question 6: Which of the following is NOT considered to be an unfair claims settlement practice?

Answer:

Advising a claimant to hire an attorney

Question 7: Which of the following is NOT an insurer policy expense?

Answer:

premiums

Question 8: Mortality is calculated by using a large risk pool of

Answer:

people and time Question 9: According to the California Insurance Code, what is "insurance"?

Answer:

A contract Question 10: When intentional concealment is involved, what course of action is the injured party entitled to?

Answer:

Recession of the contract

Question 11: The probability of death, listed by year, is demonstrated in

Answer:

Mortality tables Question 12: Which of the following is not a common life insurance policy later?

Answer:

Extended term Question 13: According to Social Security, an individual with six credits of coverage during the previous 13-quarter period is considered to be

Answer:

Currently insured

Question 14: What does the guaranteed insurability option allow and insured to do?

Answer:

Purchase additional coverage with no evidence of insurability required Question 15: A savings vehicle designed to first accumulate funds and then systematically liquidates the funds is called a(n)

Answer:

Deferred annuity

Question 16: The reason for social insurance is to

Answer:

protect certain vulnerable segments of the population Question 17: Moral hazard is described as the:

Answer:

increased chance of a loss because of an insured's dishonest tendencies Question 18: Which of the following would not be accomplished with the purchase of an insurance policy?

Answer:

Risk is eliminated

Question 19: What distinguishes a deferred annuity from an immediate annuity?

Answer:

The time at which benefit payments start Question 20: What does the term "indemnity" mean as it pertains to insurance?

Answer:

To make whole Question 21: A life insurance policy can be surrendered for its cash value under which policy provision?

Answer:

Nonforfeiture options

Question 22: Which of the following is NOT a primary objective of insurance regulation?

Answer:

Interpret policy provisions Question 23: When an applicant applies for insurance, the process by which the insurer determines whether to issue a policy is called

Answer:

Underwriting

Question 24: A spendthrift clause in a life insurance policy

Answer:

restricts the ability of the beneficiary to assign benefits

Question 25: What does the grace period allow a life insurance policy to do?

Answer:

Make a premium payment after the due date without any loss of coverage Question 26: An agent has advertised that the insurer to which the agent is appointed with is a member of the Insurance Guarantee Association. This agent has committed a(n)

Answer:

unfair method of competition Question 27: An insurer can be protected from adverse selection by which policy provision?

Answer:

Suicide clause

Question 28: Which type of risk is gambling?

Answer:

Speculative risk Question 29: A creditor would be allowed rights to life insurance policy proceeds, if which of the following beneficiaries is chosen?

Answer:

The insured's estate