CALIFORNIA LIFE INSURANCE
EXAM 2026 LICENSE TEST PAPER
QUESTIONS ANSWERS GRADED A+
◉ Medicare Part B has an initial enrollment period. How many months
after an individual's 65th birthday month does this enrollment period
end?
Answer: 3 months
◉ Which statement is true regarding policy dividends?
Answer: A dividend option is selected by the insured at the time of
policy purchase
◉ What does the insurance term "indemnity" refer to?
Answer: Make whole
◉ What is a common reason people purchase an annuity?
Answer: To protect against the risk of outliving their financial resources
◉ The importance of a representation is demonstrated in what rule?
Answer: Materiality of concealment
◉ Who does a life settlement broker represent?
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?
Answer: Insurer
◉ The Human Life Value concept is based on
Answer: income
◉ Business Overhead Expense Insurance pays for
Answer: business expenses when a business owner becomes disabled
◉ At what point does a self-insured group qualify for stop-loss
coverage?
Answer: When claims exceed a specified limit in a set period of time
◉ What percentage of eligible employees must participate in a
noncontributory group health plan before it can be put in effect?
Answer: 100%
◉ A life insurance policy where the insured can choose where the cash
value can be invested is called
Answer: variable life
◉ Which of these statements correctly describes risk?
, Answer: Pure and speculative risks are both insurable
◉ The elimination period in a disability income policy serves the same
purpose as a(n) ______ in a medical expense policy.
Answer: deductible
◉ What is required after a life agent sells an insurance policy to an
applicant without being appointed by the insurer?
Answer: Notice of appointment must be submitted to the Commissioner
◉ Retirement plans are prevented from favoring highly compensated
employees under which government regulation?
Answer: Nondiscrimination
◉ ESOPs are typically invested in
Answer: employer stock
◉ The reason for social insurance is to
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?
Answer: 60 payments
EXAM 2026 LICENSE TEST PAPER
QUESTIONS ANSWERS GRADED A+
◉ Medicare Part B has an initial enrollment period. How many months
after an individual's 65th birthday month does this enrollment period
end?
Answer: 3 months
◉ Which statement is true regarding policy dividends?
Answer: A dividend option is selected by the insured at the time of
policy purchase
◉ What does the insurance term "indemnity" refer to?
Answer: Make whole
◉ What is a common reason people purchase an annuity?
Answer: To protect against the risk of outliving their financial resources
◉ The importance of a representation is demonstrated in what rule?
Answer: Materiality of concealment
◉ Who does a life settlement broker represent?
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?
Answer: Insurer
◉ The Human Life Value concept is based on
Answer: income
◉ Business Overhead Expense Insurance pays for
Answer: business expenses when a business owner becomes disabled
◉ At what point does a self-insured group qualify for stop-loss
coverage?
Answer: When claims exceed a specified limit in a set period of time
◉ What percentage of eligible employees must participate in a
noncontributory group health plan before it can be put in effect?
Answer: 100%
◉ A life insurance policy where the insured can choose where the cash
value can be invested is called
Answer: variable life
◉ Which of these statements correctly describes risk?
, Answer: Pure and speculative risks are both insurable
◉ The elimination period in a disability income policy serves the same
purpose as a(n) ______ in a medical expense policy.
Answer: deductible
◉ What is required after a life agent sells an insurance policy to an
applicant without being appointed by the insurer?
Answer: Notice of appointment must be submitted to the Commissioner
◉ Retirement plans are prevented from favoring highly compensated
employees under which government regulation?
Answer: Nondiscrimination
◉ ESOPs are typically invested in
Answer: employer stock
◉ The reason for social insurance is to
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?
Answer: 60 payments
