CALIFORNIA OPTOMETRY LAW Exam
UPDATED ACTUAL Exam Question and
Answer (2026/2027) | Grade A+
• Anti-kickback/fee splitting law -✓✓ it's unlawful to offer/receive/accept any
rebate/refund/commission/discount/compenstation for referring patients.
*Public offense punishable by jail or fine.
• Federal stark law: it's unlawful to refer to a health care provider in which the
practitioner or immediate family member has a financial interest ($5000 or 5% of
the whole) with the person receiving the referral.
What qualifies as an immediate family member? What are the exceptions to this
law? -✓✓ 1. parents
2. spouse
2. children
4. spouses of children (e.g. daughter in law)
Permitted if financial interest is disclosed in writing at the time of
referral/consultation request. Patient may be referred if there is no alternative
provider within 25 miles or 40 minutes.
*Can't refer to spouse or children but can refer to brother. If 25 miles/40 mins you
can refer exception.
• True or False: Any price advertisement must be exact and clearly identify the
price for each product or service. -✓✓ True
Cannot use words such as "as low as", "and up to", "Lowest prices" or
statements/advertisments of bait, discount, premiums, or gifts.
• true/false: can use the term "lowest price" or "as low as" for ads -✓✓ false
• What 10 items can be included in advertising? -✓✓ 1. Name, address, office
hours
2. Languages spoken
,3. Certification or eligibility for certification by a board or organization recognized
by SBO
4. Degrees received, names of schools, post grad training
5. Publications authored
6. Testing positions (current or former)
7. Affiliations with hospitals or clinics
8. Fees for services or products and methods of payment
9. Personal picture or picture of facilities/products
10. Description for products advertised
• True/False: an optometrist can lease a space from an optician or health plan -✓✓
True
• True/False: an optometrist can be employed by an optician -✓✓ false
• True/False: if an OD leases a space from an optician or health plan the lease
cannot be less than one year and cannot be terminated for a reason that interferes
with the practice of optometry -✓✓ true
• True/False: if an OD leases a space from an optician or health plan the lease
payments can be based on number of eye exams performed, prescriptions written,
patient referrals, or the sale/promotion of products of an optician, optical company
or health plan -✓✓ false
• True/False: if an OD leases a space from an optician or health plan the
optometrist has exclusive control of their schedule, how many patients they see and
the time interval for appointments. -✓✓ true
• True/False: if an OD leases a space from an optician or health plan the
optometrist has exclusive control over the selection and supervision of optometric
staff. -✓✓ true
• True/False: if an OD leases a space from an optician or health plan the
optometrist has exclusive control over the fees charged, examination procedures,
and treatments provided. -✓✓ true
• True/False: if an OD leases a space from an optician or health plan the
optometrist is not free to contract with a health plan of their choice. -✓✓ false
, • True/False: if an OD leases a space from an optician or health plan the
optometrist's records are the sole property of the optician/health plan -✓✓ false
sole property of the optometrist
• True/False: if an OD leases a space from an optician or health plan the
optometrist's leased space is definite and distinct from the space occupied by others
on the premises, must have a signed designating the leased space is occupied by an
independent OD, and must be accessible to the OD after hours or in the case of an
emergency. -✓✓ true
• True/False: if an OD leases a space from an optician or health plan all signs and
displays are separate and distinct from that of the other occupants and have the
OD's name and the word "optometrist" prominently displayed. There can be no
signs displayed on any part of the premises or in any advertising indicating that the
optometrist is employed or controlled by the optician, health plan, or company. -
✓✓ true
• True/false: to encourage prompt payment of health or medical care claims, health
care providers are authorized to grant discounts in health or medical care claims
when payment is made promptly within time limits prescribed by the health care
providers or institutions rendering the service or treatment. -✓✓ true
• True/false: ODs are allowed to grant discounts for health/medical care provided
to any patient that the provider reasonably believes is not eligible for or is not
entitled to insurance reimbursement or coverage under the MediCal or health care
service plan for the health/medical care provided. -✓✓ true
• True/false: can do a discount if you encourage prompt payment such as if the
patient pays cash now they can get a discount or if the patient is low income you
can do a discount -✓✓ true
• True/false: an OD does not have to disclose their name and license status on a
name tag and communicate their name, license type, and academic degree in
writing at the first visit if they have a prominently displayed license visible to the
patient. -✓✓ true
UPDATED ACTUAL Exam Question and
Answer (2026/2027) | Grade A+
• Anti-kickback/fee splitting law -✓✓ it's unlawful to offer/receive/accept any
rebate/refund/commission/discount/compenstation for referring patients.
*Public offense punishable by jail or fine.
• Federal stark law: it's unlawful to refer to a health care provider in which the
practitioner or immediate family member has a financial interest ($5000 or 5% of
the whole) with the person receiving the referral.
What qualifies as an immediate family member? What are the exceptions to this
law? -✓✓ 1. parents
2. spouse
2. children
4. spouses of children (e.g. daughter in law)
Permitted if financial interest is disclosed in writing at the time of
referral/consultation request. Patient may be referred if there is no alternative
provider within 25 miles or 40 minutes.
*Can't refer to spouse or children but can refer to brother. If 25 miles/40 mins you
can refer exception.
• True or False: Any price advertisement must be exact and clearly identify the
price for each product or service. -✓✓ True
Cannot use words such as "as low as", "and up to", "Lowest prices" or
statements/advertisments of bait, discount, premiums, or gifts.
• true/false: can use the term "lowest price" or "as low as" for ads -✓✓ false
• What 10 items can be included in advertising? -✓✓ 1. Name, address, office
hours
2. Languages spoken
,3. Certification or eligibility for certification by a board or organization recognized
by SBO
4. Degrees received, names of schools, post grad training
5. Publications authored
6. Testing positions (current or former)
7. Affiliations with hospitals or clinics
8. Fees for services or products and methods of payment
9. Personal picture or picture of facilities/products
10. Description for products advertised
• True/False: an optometrist can lease a space from an optician or health plan -✓✓
True
• True/False: an optometrist can be employed by an optician -✓✓ false
• True/False: if an OD leases a space from an optician or health plan the lease
cannot be less than one year and cannot be terminated for a reason that interferes
with the practice of optometry -✓✓ true
• True/False: if an OD leases a space from an optician or health plan the lease
payments can be based on number of eye exams performed, prescriptions written,
patient referrals, or the sale/promotion of products of an optician, optical company
or health plan -✓✓ false
• True/False: if an OD leases a space from an optician or health plan the
optometrist has exclusive control of their schedule, how many patients they see and
the time interval for appointments. -✓✓ true
• True/False: if an OD leases a space from an optician or health plan the
optometrist has exclusive control over the selection and supervision of optometric
staff. -✓✓ true
• True/False: if an OD leases a space from an optician or health plan the
optometrist has exclusive control over the fees charged, examination procedures,
and treatments provided. -✓✓ true
• True/False: if an OD leases a space from an optician or health plan the
optometrist is not free to contract with a health plan of their choice. -✓✓ false
, • True/False: if an OD leases a space from an optician or health plan the
optometrist's records are the sole property of the optician/health plan -✓✓ false
sole property of the optometrist
• True/False: if an OD leases a space from an optician or health plan the
optometrist's leased space is definite and distinct from the space occupied by others
on the premises, must have a signed designating the leased space is occupied by an
independent OD, and must be accessible to the OD after hours or in the case of an
emergency. -✓✓ true
• True/False: if an OD leases a space from an optician or health plan all signs and
displays are separate and distinct from that of the other occupants and have the
OD's name and the word "optometrist" prominently displayed. There can be no
signs displayed on any part of the premises or in any advertising indicating that the
optometrist is employed or controlled by the optician, health plan, or company. -
✓✓ true
• True/false: to encourage prompt payment of health or medical care claims, health
care providers are authorized to grant discounts in health or medical care claims
when payment is made promptly within time limits prescribed by the health care
providers or institutions rendering the service or treatment. -✓✓ true
• True/false: ODs are allowed to grant discounts for health/medical care provided
to any patient that the provider reasonably believes is not eligible for or is not
entitled to insurance reimbursement or coverage under the MediCal or health care
service plan for the health/medical care provided. -✓✓ true
• True/false: can do a discount if you encourage prompt payment such as if the
patient pays cash now they can get a discount or if the patient is low income you
can do a discount -✓✓ true
• True/false: an OD does not have to disclose their name and license status on a
name tag and communicate their name, license type, and academic degree in
writing at the first visit if they have a prominently displayed license visible to the
patient. -✓✓ true
