California Life, Accident & Health Insurance State
Exam | 2025/2026 | Complete Questions and Verified
Answers.
SECTION 1 – GENERAL INSURANCE CONCEPTS & CALIFORNIA LAW (20 items)
Under California law, the term “resident” for insurance purposes includes any person who has lived in
this state for at least how many consecutive days?
A. 90
B. 180
C. 210
D. 365
Correct: A
Rationale: CIC §31.5 defines an “insurance resident” as a person who has lived in California for 90 or
more consecutive days.
Which of the following is NOT a duty of the California Insurance Commissioner under CIC §12958?
A. Issue certificates of authority to insurers
B. Set premium rates for personal auto policies
C. Conduct market-conduct examinations
D. Approve policy forms before use
Correct: B
Rationale: The Commissioner regulates rates but does not set them directly; rate filings are reviewed for
compliance (CIC §1861.01 et seq.).
An insurer organized under Illinois law but licensed in California is classified in California as:
A. A domestic insurer
B. A foreign insurer
C. An alien insurer
,D. A reciprocal insurer
Correct: B
Rationale: CIC §28: “foreign” = organized under laws of another state; “domestic” = CA, “alien” = outside
U.S.
The California Insurance Code requires every insurer to file its policy forms with the Commissioner at
least ___ days before use.
A. 15
B. 30
C. 45
D. 60
Correct: B
Rationale: CIC §10110.1(a): 30
-day prior filing for life/health forms unless exempt.
A representation in a California life application is considered fraudulent only if it is:
A. Innocently incorrect
B. Material to the risk (CIC §359)
C. Written in pencil
D. Notarized
Correct: B
Rationale: CIC §359: misrepresentation must be material to affect acceptance or premium.
Which principle requires the policyholder to have a lawful economic interest in the subject of insurance?
A. Subrogation
B. Indemnity
C. Insurable interest (CIC §280)
D. Contribution
Correct: C
Rationale: CIC §280 mandates insurable interest for life and disability policies; without it, contract is
void.
,The maximum probationary period for group health coverage in California is:
A. 30 days
B. 60 days
C. 90 days
D. 6 months
Correct: C
Rationale: CIC §10198.6: 90
-day cap for probationary periods on group health plans issued after
1/1/2015.
An insurer’s advertisement states “No premium increase ever.” This is classified under California law as:
A. A guarantee
B. An unfair deceptive practice (CIC §790.03(h)(1))
C. A puff
D. An express warranty
Correct: B
Rationale: Absolute premium promises are misleading; CIC §790.03(h)(1) lists such statements as unfair
trade practices.
A California insurer wants to declare dividends to policyholders. It must obtain Commissioner approval
under:
A. CIC §10509
B. CIC §411.5
C. CIC §1861.05
D. No approval is required
Correct: A
Rationale: CIC §10509 requires Commissioner consent before any dividend distribution to protect
solvency.
The California “free
- look” period for individual life policies delivered in CA is:
A. 10 days
, B. 20 days
C. 30 days (CIC §10127.15)
D. 60 days
Correct: C
Rationale: CIC §10127.15 gives the insured 30 days to return the policy for full premium refund.
A temporary license issued by CDI is valid for a maximum of:
A. 90 days
B. 180 days (CIC §1638)
C. 1 year
D. 2 years
Correct: B
Rationale: CIC §1638: temp licenses expire 180 days after issuance and are
-renewable.
non
Which document must be given to every life policy applicant in California?
A. Buyer's Guide & Policy Summary (CIC §10509.4)
B. HIPAA notice only
C. AM Best rating sheet
D. Agent’s social
-security number
Correct: A
Rationale: CIC §10509.4 mandates delivery of Buyer's Guide and personalized Policy Summary.
An insurer’s domicile is determined by:
A. Location of its home office incorporated (CIC §27)
B. State with largest premium volume
C. Location of the Commissioner
D. State where majority of insureds reside
Correct: A
Rationale: CIC §27: “domicile” = state of incorporation or charter.
Exam | 2025/2026 | Complete Questions and Verified
Answers.
SECTION 1 – GENERAL INSURANCE CONCEPTS & CALIFORNIA LAW (20 items)
Under California law, the term “resident” for insurance purposes includes any person who has lived in
this state for at least how many consecutive days?
A. 90
B. 180
C. 210
D. 365
Correct: A
Rationale: CIC §31.5 defines an “insurance resident” as a person who has lived in California for 90 or
more consecutive days.
Which of the following is NOT a duty of the California Insurance Commissioner under CIC §12958?
A. Issue certificates of authority to insurers
B. Set premium rates for personal auto policies
C. Conduct market-conduct examinations
D. Approve policy forms before use
Correct: B
Rationale: The Commissioner regulates rates but does not set them directly; rate filings are reviewed for
compliance (CIC §1861.01 et seq.).
An insurer organized under Illinois law but licensed in California is classified in California as:
A. A domestic insurer
B. A foreign insurer
C. An alien insurer
,D. A reciprocal insurer
Correct: B
Rationale: CIC §28: “foreign” = organized under laws of another state; “domestic” = CA, “alien” = outside
U.S.
The California Insurance Code requires every insurer to file its policy forms with the Commissioner at
least ___ days before use.
A. 15
B. 30
C. 45
D. 60
Correct: B
Rationale: CIC §10110.1(a): 30
-day prior filing for life/health forms unless exempt.
A representation in a California life application is considered fraudulent only if it is:
A. Innocently incorrect
B. Material to the risk (CIC §359)
C. Written in pencil
D. Notarized
Correct: B
Rationale: CIC §359: misrepresentation must be material to affect acceptance or premium.
Which principle requires the policyholder to have a lawful economic interest in the subject of insurance?
A. Subrogation
B. Indemnity
C. Insurable interest (CIC §280)
D. Contribution
Correct: C
Rationale: CIC §280 mandates insurable interest for life and disability policies; without it, contract is
void.
,The maximum probationary period for group health coverage in California is:
A. 30 days
B. 60 days
C. 90 days
D. 6 months
Correct: C
Rationale: CIC §10198.6: 90
-day cap for probationary periods on group health plans issued after
1/1/2015.
An insurer’s advertisement states “No premium increase ever.” This is classified under California law as:
A. A guarantee
B. An unfair deceptive practice (CIC §790.03(h)(1))
C. A puff
D. An express warranty
Correct: B
Rationale: Absolute premium promises are misleading; CIC §790.03(h)(1) lists such statements as unfair
trade practices.
A California insurer wants to declare dividends to policyholders. It must obtain Commissioner approval
under:
A. CIC §10509
B. CIC §411.5
C. CIC §1861.05
D. No approval is required
Correct: A
Rationale: CIC §10509 requires Commissioner consent before any dividend distribution to protect
solvency.
The California “free
- look” period for individual life policies delivered in CA is:
A. 10 days
, B. 20 days
C. 30 days (CIC §10127.15)
D. 60 days
Correct: C
Rationale: CIC §10127.15 gives the insured 30 days to return the policy for full premium refund.
A temporary license issued by CDI is valid for a maximum of:
A. 90 days
B. 180 days (CIC §1638)
C. 1 year
D. 2 years
Correct: B
Rationale: CIC §1638: temp licenses expire 180 days after issuance and are
-renewable.
non
Which document must be given to every life policy applicant in California?
A. Buyer's Guide & Policy Summary (CIC §10509.4)
B. HIPAA notice only
C. AM Best rating sheet
D. Agent’s social
-security number
Correct: A
Rationale: CIC §10509.4 mandates delivery of Buyer's Guide and personalized Policy Summary.
An insurer’s domicile is determined by:
A. Location of its home office incorporated (CIC §27)
B. State with largest premium volume
C. Location of the Commissioner
D. State where majority of insureds reside
Correct: A
Rationale: CIC §27: “domicile” = state of incorporation or charter.
