CALIFORNIA LIFE AND HEALTH INSURANCE EXAM
LATEST VERSION 2025-2026 ACTUAL EXAM 250
QUESTIONS AND CORRECT ANSWERS) |ALREADY
GRADED A+
Overview:
This comprehensive prep material mirrors the official California Department of
Insurance (CDI) exam format and content outline. It offers an up-to-date, in-depth
review of insurance fundamentals, policy types, underwriting, and laws governing
life and health insurance in California.
Perfect for insurance pre-licensing students, career changers, and agents
seeking certification renewal, this verified 250-question exam ensures complete
readiness for test day.
Key Features:
✅ 250 verified and accurate exam questions with correct answers
✅ Updated for the 2025–2026 California Life & Health Exam
✅ Fully aligned with CDI exam objectives and terminology
✅ A+ graded for accuracy and reliability
✅ Covers both Life Insurance and Accident & Health Insurance sections
✅ Ideal for pre-licensing preparation and practice testing
Purpose:
To provide complete, verified, and up-to-date exam preparation
To ensure understanding of California insurance laws and industry
practices
To help candidates pass the licensing exam with confidence
Recommended For:
Insurance pre-licensing candidates (Life, Health, or Combined)
, Career professionals preparing for California insurance certification
Training providers and instructors offering exam prep courses
✅ With 250 verified and correct answers, this 2025–2026 edition is your most
reliable, accurate, and complete study companion for passing the California
Life and Health Insurance Exam with excellence.
Your client has just bought a new home which he has financed with a $150,000, 7.5% interest, 30-year
bank loan. He would like to be sure that if he dies that the unpaid balance of the mortgage would be
paid. He wants a policy that will cover the mortgage balance-no more, no less-anytime during the life of
the mortgage. Which policy is designed to meet this need? - ANSWER-Decreasing term policy
What is meant by referring to an insurance policy as a unilateral contract? - ANSWER-Only one party
makes a legally enforceable promise
When must insurance records of insurance agents and brokers be made available to the Insurance
Commissioner? - ANSWER-At all times
Any situation that presents the possibility of a loss is known as - ANSWER-a loss exposure
Which of the following information is not required to be communicated in a Life insurance contract? -
ANSWER-Personal judgment
The direct distribution of insurance utilizes all of the following to promote the sale of insurance EXCEPT -
ANSWER-telephone call from an agent
A contract in which one party promises to indemnify another against loss that arises from an unknown
event is - ANSWER-an insurance policy
All of the occurrences listed below are examples of an insurable event as defined by the California
Insurance Code EXCEPT - ANSWER-an insured suffers a financial loss in the state lottery
, All of the following statements about aleatory contracts are true EXCEPT - ANSWER-the insured and
insurer contribute equally to the contract
All of the following would be considered unfair trade practices EXCEPT - ANSWER-committing any act of
discrimination whether it be deemed fair or unfair
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 Insurance Services
A contract of indemnity is one in which - ANSWER-one party is restored to the same financial position
the party was in before the loss occurred
In insurance terminology, "indemnity" means - ANSWER-make whole
As defined in the California insurance Code, "insurance" is a - ANSWER-contract
What would a person be guilty of who refuses to deliver any books, records, or assets to the
commissioner once a seizure order has been executed? - ANSWER-a misdemeanor
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? -
ANSWERfiduciary
Which of the following statements regarding risk is TRUE? - ANSWER-only pure risks are insurable
The purchase of an insurance policy may accomplish all of the following for the insured EXCEPT -
ANSWER-the elimination of risk
Insureds are entitled to recover an amount NOT greater than the amount of their loss under the
principle of - ANSWER-indemnity
LATEST VERSION 2025-2026 ACTUAL EXAM 250
QUESTIONS AND CORRECT ANSWERS) |ALREADY
GRADED A+
Overview:
This comprehensive prep material mirrors the official California Department of
Insurance (CDI) exam format and content outline. It offers an up-to-date, in-depth
review of insurance fundamentals, policy types, underwriting, and laws governing
life and health insurance in California.
Perfect for insurance pre-licensing students, career changers, and agents
seeking certification renewal, this verified 250-question exam ensures complete
readiness for test day.
Key Features:
✅ 250 verified and accurate exam questions with correct answers
✅ Updated for the 2025–2026 California Life & Health Exam
✅ Fully aligned with CDI exam objectives and terminology
✅ A+ graded for accuracy and reliability
✅ Covers both Life Insurance and Accident & Health Insurance sections
✅ Ideal for pre-licensing preparation and practice testing
Purpose:
To provide complete, verified, and up-to-date exam preparation
To ensure understanding of California insurance laws and industry
practices
To help candidates pass the licensing exam with confidence
Recommended For:
Insurance pre-licensing candidates (Life, Health, or Combined)
, Career professionals preparing for California insurance certification
Training providers and instructors offering exam prep courses
✅ With 250 verified and correct answers, this 2025–2026 edition is your most
reliable, accurate, and complete study companion for passing the California
Life and Health Insurance Exam with excellence.
Your client has just bought a new home which he has financed with a $150,000, 7.5% interest, 30-year
bank loan. He would like to be sure that if he dies that the unpaid balance of the mortgage would be
paid. He wants a policy that will cover the mortgage balance-no more, no less-anytime during the life of
the mortgage. Which policy is designed to meet this need? - ANSWER-Decreasing term policy
What is meant by referring to an insurance policy as a unilateral contract? - ANSWER-Only one party
makes a legally enforceable promise
When must insurance records of insurance agents and brokers be made available to the Insurance
Commissioner? - ANSWER-At all times
Any situation that presents the possibility of a loss is known as - ANSWER-a loss exposure
Which of the following information is not required to be communicated in a Life insurance contract? -
ANSWER-Personal judgment
The direct distribution of insurance utilizes all of the following to promote the sale of insurance EXCEPT -
ANSWER-telephone call from an agent
A contract in which one party promises to indemnify another against loss that arises from an unknown
event is - ANSWER-an insurance policy
All of the occurrences listed below are examples of an insurable event as defined by the California
Insurance Code EXCEPT - ANSWER-an insured suffers a financial loss in the state lottery
, All of the following statements about aleatory contracts are true EXCEPT - ANSWER-the insured and
insurer contribute equally to the contract
All of the following would be considered unfair trade practices EXCEPT - ANSWER-committing any act of
discrimination whether it be deemed fair or unfair
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 Insurance Services
A contract of indemnity is one in which - ANSWER-one party is restored to the same financial position
the party was in before the loss occurred
In insurance terminology, "indemnity" means - ANSWER-make whole
As defined in the California insurance Code, "insurance" is a - ANSWER-contract
What would a person be guilty of who refuses to deliver any books, records, or assets to the
commissioner once a seizure order has been executed? - ANSWER-a misdemeanor
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? -
ANSWERfiduciary
Which of the following statements regarding risk is TRUE? - ANSWER-only pure risks are insurable
The purchase of an insurance policy may accomplish all of the following for the insured EXCEPT -
ANSWER-the elimination of risk
Insureds are entitled to recover an amount NOT greater than the amount of their loss under the
principle of - ANSWER-indemnity
