1|Page
CALIFORNIA LIFE, ACCIDENT & HEALTH
LICENSING EXAM — 2026 UPDATED | A+
GRADED | GUARANTEED PASS
COMPLETE VERIFIED QUESTION BANK
WITH ACCURATE CORRECT ANSWERS |
EXPERT-REVIEWED CALIFORNIA
INSURANCE CERTIFICATION STUDY
GUIDE
Is a dishonest person (lacking in morals) -
......ANSWER.....A moral hazard
A careless person. - ......ANSWER.....A morale hazard
Is a cause of loss - ......ANSWER.....A peril
Is insurable & includes only a chance of loss. -
......ANSWER.....Pure risk
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Would be found with a substandard risk
classification. - ......ANSWER.....The highest premium
Are an insurer expense - ......ANSWER.....Agent
commissions
Is a contract that transfers risk from one party to
another. - ......ANSWER....."Insurance"
Is a written contract - ......ANSWER.....An "insurance
policy"
May cause the injured party
To rescind the policy - ......ANSWER.....Neglect to
communicate that which a party knows is
"concealment"
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Is determined solely by the probable and
reasonable influence of the facts upon the part
To whom the communication is due -
......ANSWER....."Materiality"
Is the rule used to determine the importance of the
Misrepresentation. - ......ANSWER.....The
"materiality of concealment"
Must specify the parties between whom the
contract is made - ......ANSWER.....An insurance
policy
Is not required to be included in the insurance
policy - ......ANSWER.....The financial rating of an
insurer
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The mail and/or internet is used to sell policies, not
agents - ......ANSWER.....In a direct response
marketing system
For compensation and on behalf of another person,
transacts
Insurance. - ......ANSWER.....An insurance broker is a
person who
For compensation, transacts insurance for the
insurer. - ......ANSWER.....An insurance agent is a
person who
Is a person employed by an insurance agent or
broker to aid in insurance
Transactions - ......ANSWER.....An insurance solicitor
To transact insurance - ......ANSWER.....A person can
always use their legal name
CALIFORNIA LIFE, ACCIDENT & HEALTH
LICENSING EXAM — 2026 UPDATED | A+
GRADED | GUARANTEED PASS
COMPLETE VERIFIED QUESTION BANK
WITH ACCURATE CORRECT ANSWERS |
EXPERT-REVIEWED CALIFORNIA
INSURANCE CERTIFICATION STUDY
GUIDE
Is a dishonest person (lacking in morals) -
......ANSWER.....A moral hazard
A careless person. - ......ANSWER.....A morale hazard
Is a cause of loss - ......ANSWER.....A peril
Is insurable & includes only a chance of loss. -
......ANSWER.....Pure risk
,2|Page
Would be found with a substandard risk
classification. - ......ANSWER.....The highest premium
Are an insurer expense - ......ANSWER.....Agent
commissions
Is a contract that transfers risk from one party to
another. - ......ANSWER....."Insurance"
Is a written contract - ......ANSWER.....An "insurance
policy"
May cause the injured party
To rescind the policy - ......ANSWER.....Neglect to
communicate that which a party knows is
"concealment"
,3|Page
Is determined solely by the probable and
reasonable influence of the facts upon the part
To whom the communication is due -
......ANSWER....."Materiality"
Is the rule used to determine the importance of the
Misrepresentation. - ......ANSWER.....The
"materiality of concealment"
Must specify the parties between whom the
contract is made - ......ANSWER.....An insurance
policy
Is not required to be included in the insurance
policy - ......ANSWER.....The financial rating of an
insurer
, 4|Page
The mail and/or internet is used to sell policies, not
agents - ......ANSWER.....In a direct response
marketing system
For compensation and on behalf of another person,
transacts
Insurance. - ......ANSWER.....An insurance broker is a
person who
For compensation, transacts insurance for the
insurer. - ......ANSWER.....An insurance agent is a
person who
Is a person employed by an insurance agent or
broker to aid in insurance
Transactions - ......ANSWER.....An insurance solicitor
To transact insurance - ......ANSWER.....A person can
always use their legal name
