1|Page
California, Life, Health and Accident 2025 Latest
Practice Exam with 150 Questions and Correct
Answers/ CA Life, Health & Accident Practice Test
A moral hazard - ...ANSWER...✓✓ is a dishonest person
(lacking in morals)
A morale hazard - ...ANSWER...✓✓ a careless person.
A peril - ...ANSWER...✓✓ is a cause of loss
Pure risk - ...ANSWER...✓✓ is insurable & includes only a
chance of loss.
The highest premium - ...ANSWER...✓✓ would be found
with a substandard risk classification.
Agent commissions - ...ANSWER...✓✓ are an insurer
expense
"Insurance" - ...ANSWER...✓✓ is a contract that transfers
risk from one party to another.
,2|Page
An "insurance policy" - ...ANSWER...✓✓ is a written
contract
Neglect to communicate that which a party knows is
"concealment" - ...ANSWER...✓✓ may cause the injured
party
to rescind the policy
"Materiality" - ...ANSWER...✓✓ is determined solely by
the probable and reasonable influence of the facts upon
the part
to whom the communication is due
The "materiality of concealment" - ...ANSWER...✓✓ is the
rule used to determine the importance of the
misrepresentation.
An insurance policy - ...ANSWER...✓✓ must specify the
parties between whom the contract is made
,3|Page
The financial rating of an insurer - ...ANSWER...✓✓ is not
required to be included in the insurance policy
In a direct response marketing system - ...ANSWER...✓✓
the mail and/or internet is used to sell policies, not
agents
An insurance broker is a person who - ...ANSWER...✓✓
for compensation and on behalf of another person,
transacts
insurance.
An insurance agent is a person who - ...ANSWER...✓✓ for
compensation, transacts insurance for the insurer.
An insurance solicitor - ...ANSWER...✓✓ is a person
employed by an insurance agent or broker to aid in
insurance
transactions
A person can always use their legal name -
...ANSWER...✓✓ to transact insurance
, 4|Page
The state may disapprove the use of any true or fictitious
name except - ...ANSWER...✓✓ a person's legal name
An insurance agent or broker hires a third party to
prepare their website - ...ANSWER...✓✓ The insurance
agent or
broker, not the third party, is responsible for the content
of the website.
An admitted insurer - ...ANSWER...✓✓ is an insurer
entitled to transact business in this state
A mutual insurer - ...ANSWER...✓✓ is owned by the
policyholders and issues participating policies
The Insurance Commissioner in California -
...ANSWER...✓✓ is elected by the people.
The Insurance Commissioner may serve - ...ANSWER...✓✓
up to two (2) four-year terms
California, Life, Health and Accident 2025 Latest
Practice Exam with 150 Questions and Correct
Answers/ CA Life, Health & Accident Practice Test
A moral hazard - ...ANSWER...✓✓ is a dishonest person
(lacking in morals)
A morale hazard - ...ANSWER...✓✓ a careless person.
A peril - ...ANSWER...✓✓ is a cause of loss
Pure risk - ...ANSWER...✓✓ is insurable & includes only a
chance of loss.
The highest premium - ...ANSWER...✓✓ would be found
with a substandard risk classification.
Agent commissions - ...ANSWER...✓✓ are an insurer
expense
"Insurance" - ...ANSWER...✓✓ is a contract that transfers
risk from one party to another.
,2|Page
An "insurance policy" - ...ANSWER...✓✓ is a written
contract
Neglect to communicate that which a party knows is
"concealment" - ...ANSWER...✓✓ may cause the injured
party
to rescind the policy
"Materiality" - ...ANSWER...✓✓ is determined solely by
the probable and reasonable influence of the facts upon
the part
to whom the communication is due
The "materiality of concealment" - ...ANSWER...✓✓ is the
rule used to determine the importance of the
misrepresentation.
An insurance policy - ...ANSWER...✓✓ must specify the
parties between whom the contract is made
,3|Page
The financial rating of an insurer - ...ANSWER...✓✓ is not
required to be included in the insurance policy
In a direct response marketing system - ...ANSWER...✓✓
the mail and/or internet is used to sell policies, not
agents
An insurance broker is a person who - ...ANSWER...✓✓
for compensation and on behalf of another person,
transacts
insurance.
An insurance agent is a person who - ...ANSWER...✓✓ for
compensation, transacts insurance for the insurer.
An insurance solicitor - ...ANSWER...✓✓ is a person
employed by an insurance agent or broker to aid in
insurance
transactions
A person can always use their legal name -
...ANSWER...✓✓ to transact insurance
, 4|Page
The state may disapprove the use of any true or fictitious
name except - ...ANSWER...✓✓ a person's legal name
An insurance agent or broker hires a third party to
prepare their website - ...ANSWER...✓✓ The insurance
agent or
broker, not the third party, is responsible for the content
of the website.
An admitted insurer - ...ANSWER...✓✓ is an insurer
entitled to transact business in this state
A mutual insurer - ...ANSWER...✓✓ is owned by the
policyholders and issues participating policies
The Insurance Commissioner in California -
...ANSWER...✓✓ is elected by the people.
The Insurance Commissioner may serve - ...ANSWER...✓✓
up to two (2) four-year terms
