PSI CA LIFE, ACCIDENT, AND HEALTH LICENSE EXAM 2025

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PSI CA LIFE, ACCIDENT, AND HEALTH LICENSE EXAM 2025

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

-Format: Multiple-choice / Flashcard

Question 1: Which of the following is Not a characteristic of reinsurance?

Answer:

Increases the unearned premium reserved Question 2: How are acts of war and aviation treated under a group life insurance policy?

Answer:

Generally excluded from coverage.Question 3: 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

Question 4: Which of the following is not considered a definition of a risk?

Answer:

The cause of loss Question 5: An insured replaces an existing annuity with a new one and must pay a surrender charge for cancelling the What do we call the process whereby insurers decide which customers to insure and what coverage to offer ?

Answer:

Underwriting

Question 6: Section 1729.2 of the California Insurance Code requires insurance producer applications and licensees to notify the Insurance Commissioner in writing, within ___days of charges in background information after an application has been submitted or a license has been issued.

Answer:

30 Question 7: Which of the following is any situation that presents the possibility of a loss?

Answer:

Risk Question 8: Anyone employed in California to assist an insurance agent in transacting insurance is called an insurance

Answer:

solicitor

Question 9: Which type of risk is gambling?

Answer:

Speculative risk Question 10: What does the term "illustration" mean when used in the phrase "life insurance policy illustration", according to the California Insurance Code?

Answer:

Presentation of policy features that includes non-guaranteed elements Question 11: according to the California insurance code, if an insurer's certificate of authority is revoked, the Commissioner can proceed with any of the following EXCEPT

Answer:

using Guarantee Funds to pay salaries Question 12: An agent's attempt to stop the replacement of an existing life insurance policy is known as

Answer:

conservation

Question 13: As a broker, you are assisting your client in finding 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)

Answer:

admitted insurer.Question 14: if you have been convicted of a misdemeanor and that misdemeanor conviction is later expunged pursuant to California Penal Code Section 1203.4, which of the following is true

Answer:

event though your misdemeanor conviction was expunge, you must still disclose conviction on your individual application for an insurance license Question 15: the direct response distribution of insurance utilizes all of the following to promote the sales of insurance EXCEPT

Answer:

telephone call from the agent Question 16: According to the California insurance code, the commissioner can disapprove a licensee's request to use a fictitious name for any of the following reasons EXCEPT that the

Answer:

name is the licensee's actual name

Question 17: what is the definition of premium?

Answer:

Money an insured pays an insurer to obtain the benefits provided in the policy.Question 18: An insurer that has been found using higher rates based on race,religion, or ethnicity is said to be engaging in

Answer:

unfair discrimination Question 19: Pete is a life agent who has misappropriated fiduciary funds to his own use. What is Pete guilty of?

Answer:

Fiduciary misappropriation

Question 20: what rule is used to determine the importance of a representation?

Answer:

the materiality of concealment Question 21: The purchase of an insurance policy may accomplish all of the following for the insured EXCEPT

Answer:

Eliminating risk

Question 22: Who are members of the Medical Information Bureau?

Answer:

Life and health insurers (life and health insurance companies) Question 23: As authorized by the California Insurance Code, the Insurance Commissioner has provided standards for names used by life insurance agents. Under these standards which, if any, of the following are automatically acceptable for Mary Brown, a holder of the CLU designation?

Answer:

Mary Brown, CLU Insurance services

Question 24: all of the following are benefits of insurance EXCEPT it

Answer:

eliminates fraudulent losses Question 25: Failure to report background changes within 30 days as required under section 1729.2 of the California insurance code could subject a license or applicant to

Answer:

all of these Question 26: Which of the following does the California Insurance Code NOT require an insurance policy to specify?

Answer:

insurer's financial rating