CA Life Insurance Exam Question and
Answer | UPDATED ACTUAL | 2026
• Any situation that presents the possibility of a loss is known as -✓✓ A loss of
exposure
• Which of the following information is not required to be communicated in a life
insurance contract? -✓✓ Personal judgment
• The direct distribution of insurance utilizes all of the following to promote the
sale of insurance EXCEPT -✓✓ Telephone call from an agent
• A contract in which one party promises to indemnify another against loss that
arises from an unknown event is -✓✓ An insurance policy
• All of the occurrences listed below are examples of an insurable event as defined
by the California Insurance Code EXCEPT -✓✓ An insured suffers a financial loss
in the state lottery
• All of the following statements about aleatory contracts are true EXCEPT -✓✓
The insured and the insurer contribute equally to the contract
• All of the following would be considered unfair trade practices EXCEPT -✓✓
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? -✓✓ Mary Brown Insurance Services
• A contract of indemnity is one in which -✓✓ One party is restored to the same
financial position the party was in before the loss occurred
• In insurance terminology, "Indemnity" means -✓✓ Make whole
• As defined in the California insurance Code, "insurance" is a -✓✓ 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? -✓✓ 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? -✓✓ Fiduciary
• Which of the following statements regarding risk is TRUE? -✓✓ Only pure risks
are insurable
• The purchase of an insurance may accomplish all of the following EXCEPT -✓✓
The elimination of risk
• Insureds are entitled to recover an amount NOT greater than the amount of their
loss under the principle of -✓✓ Indemnity
Answer | UPDATED ACTUAL | 2026
• Any situation that presents the possibility of a loss is known as -✓✓ A loss of
exposure
• Which of the following information is not required to be communicated in a life
insurance contract? -✓✓ Personal judgment
• The direct distribution of insurance utilizes all of the following to promote the
sale of insurance EXCEPT -✓✓ Telephone call from an agent
• A contract in which one party promises to indemnify another against loss that
arises from an unknown event is -✓✓ An insurance policy
• All of the occurrences listed below are examples of an insurable event as defined
by the California Insurance Code EXCEPT -✓✓ An insured suffers a financial loss
in the state lottery
• All of the following statements about aleatory contracts are true EXCEPT -✓✓
The insured and the insurer contribute equally to the contract
• All of the following would be considered unfair trade practices EXCEPT -✓✓
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? -✓✓ Mary Brown Insurance Services
• A contract of indemnity is one in which -✓✓ One party is restored to the same
financial position the party was in before the loss occurred
• In insurance terminology, "Indemnity" means -✓✓ Make whole
• As defined in the California insurance Code, "insurance" is a -✓✓ 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? -✓✓ 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? -✓✓ Fiduciary
• Which of the following statements regarding risk is TRUE? -✓✓ Only pure risks
are insurable
• The purchase of an insurance may accomplish all of the following EXCEPT -✓✓
The elimination of risk
• Insureds are entitled to recover an amount NOT greater than the amount of their
loss under the principle of -✓✓ Indemnity
