CALIFORNIA LIFE AND HEALTH EXAM
COMPLETE FINAL
EXAM QUESTIONS WITH ANSWERS
2026/2027 NEW UPDATE
ESOPs are typically invested in - CORRECT ANSWER>>>>employer stock
The reason for social insurance is to - CORRECT ANSWER>>>>protect
certain vulnerable segments of the population
Cindy buys a 10-year certain annuity with an installment refund. After receiving
monthly
payments for 5 years, Cindy dies. How many remaining payments will the
insurer make to her beneficiary? - CORRECT ANSWER>>>>60 payments
he free-look period for life insurance policyowners age 60 or older is -
CORRECT
ANSWER>>>>30 days
What is considered to be the definition of disability, according to Social
Security? - CORRECT
ANSWER>>>>Unable to engage in any substantial gainful activity
"Life insurance creates an immediate estate". This phrase means: - CORRECT
ANSWER>>>>when the insured dies, a death benefit is paid
Page 1 of 17
,How are death benefits that are received by a beneficiary normally treated for
tax purposes? -
CORRECT ANSWER>>>>Exempt from federal income taxes
Exempt from federal income taxes - CORRECT ANSWER>>>>Payment for
services goes directly to the provider
When an insurance company requests an attending physician's report, the
request must be accompanied by a - CORRECT ANSWER>>>>copy of the
signed authorization
Which policy provision protects the policyowner from unintentional lapse of the
contract? - CORRECT ANSWER>>>>Grace period
What kind of annuity pays income to two annuitants until their deaths? -
CORRECT ANSWER>>>>Joint and survivor annuity
What type of changes can be made to a guaranteed renewable health insurance
policy? - CORRECT ANSWER>>>>The premium rates of the policyowner
Which of the following is NOT considered to be insurer expenses? - CORRECT
ANSWER>>>>Policy premiums
In what situation does a waiver of premium provision keep a health insurance
policy in force without premium payments? - CORRECT ANSWER>>>>When
an insured becomes totally disabled
What is an "insurance broker" according to California Insurance Code? -
CORRECT ANSWER>>>>A person authorized to assist a broker or agent in
transacting insurance.
A participating company is also referred to as which type of insurer? -
CORRECT ANSWER>>>>Mutual insurer
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, Which of the following is NOT considered to be an act of insurance
solicitation? - CORRECT ANSWER>>>>Publishing a magazine where one of
the advertisers is an insurer
Restoring an insured to the same condition as before a loss is an example of the
principle of - CORRECT ANSWER>>>>Indemnity
Employer-provided group term life insurance is exempt from income taxation
up to - CORRECT
ANSWER>>>>$50,000
Medicare Part B has an initial enrollment period. How many months after an
individual's 65th birthday month does this enrollment period end? - CORRECT
ANSWER>>>>3 months
Which statement is true regarding policy dividends? - CORRECT
ANSWER>>>>A dividend option is selected by the insured at the time of
policy purchase
What does the insurance term "indemnity" refer to? - CORRECT
ANSWER>>>>Make whole
What is a common reason people purchase an annuity? - CORRECT
ANSWER>>>>To protect against the risk of outliving their financial resources
The importance of a representation is demonstrated in what rule? - CORRECT
ANSWER>>>>Materiality of concealment
Who does a life settlement broker represent? - CORRECT
ANSWER>>>>Individual wanting to sell their life policy to a third party
Who is financially liable for the payment of covered claims in a fully insured
group health plan?
- CORRECT ANSWER>>>>Insurer
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COMPLETE FINAL
EXAM QUESTIONS WITH ANSWERS
2026/2027 NEW UPDATE
ESOPs are typically invested in - CORRECT ANSWER>>>>employer stock
The reason for social insurance is to - CORRECT ANSWER>>>>protect
certain vulnerable segments of the population
Cindy buys a 10-year certain annuity with an installment refund. After receiving
monthly
payments for 5 years, Cindy dies. How many remaining payments will the
insurer make to her beneficiary? - CORRECT ANSWER>>>>60 payments
he free-look period for life insurance policyowners age 60 or older is -
CORRECT
ANSWER>>>>30 days
What is considered to be the definition of disability, according to Social
Security? - CORRECT
ANSWER>>>>Unable to engage in any substantial gainful activity
"Life insurance creates an immediate estate". This phrase means: - CORRECT
ANSWER>>>>when the insured dies, a death benefit is paid
Page 1 of 17
,How are death benefits that are received by a beneficiary normally treated for
tax purposes? -
CORRECT ANSWER>>>>Exempt from federal income taxes
Exempt from federal income taxes - CORRECT ANSWER>>>>Payment for
services goes directly to the provider
When an insurance company requests an attending physician's report, the
request must be accompanied by a - CORRECT ANSWER>>>>copy of the
signed authorization
Which policy provision protects the policyowner from unintentional lapse of the
contract? - CORRECT ANSWER>>>>Grace period
What kind of annuity pays income to two annuitants until their deaths? -
CORRECT ANSWER>>>>Joint and survivor annuity
What type of changes can be made to a guaranteed renewable health insurance
policy? - CORRECT ANSWER>>>>The premium rates of the policyowner
Which of the following is NOT considered to be insurer expenses? - CORRECT
ANSWER>>>>Policy premiums
In what situation does a waiver of premium provision keep a health insurance
policy in force without premium payments? - CORRECT ANSWER>>>>When
an insured becomes totally disabled
What is an "insurance broker" according to California Insurance Code? -
CORRECT ANSWER>>>>A person authorized to assist a broker or agent in
transacting insurance.
A participating company is also referred to as which type of insurer? -
CORRECT ANSWER>>>>Mutual insurer
Page 2 of 17
, Which of the following is NOT considered to be an act of insurance
solicitation? - CORRECT ANSWER>>>>Publishing a magazine where one of
the advertisers is an insurer
Restoring an insured to the same condition as before a loss is an example of the
principle of - CORRECT ANSWER>>>>Indemnity
Employer-provided group term life insurance is exempt from income taxation
up to - CORRECT
ANSWER>>>>$50,000
Medicare Part B has an initial enrollment period. How many months after an
individual's 65th birthday month does this enrollment period end? - CORRECT
ANSWER>>>>3 months
Which statement is true regarding policy dividends? - CORRECT
ANSWER>>>>A dividend option is selected by the insured at the time of
policy purchase
What does the insurance term "indemnity" refer to? - CORRECT
ANSWER>>>>Make whole
What is a common reason people purchase an annuity? - CORRECT
ANSWER>>>>To protect against the risk of outliving their financial resources
The importance of a representation is demonstrated in what rule? - CORRECT
ANSWER>>>>Materiality of concealment
Who does a life settlement broker represent? - CORRECT
ANSWER>>>>Individual wanting to sell their life policy to a third party
Who is financially liable for the payment of covered claims in a fully insured
group health plan?
- CORRECT ANSWER>>>>Insurer
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