CA Life Insurance Exam Questions and
CORRECT Answers | UPDATED ACTUAL |
2026
• Accelerated Benefits . CORRECT ANSWER: Riders attached to life insurance
policies which allow death benefits to be used to cover nursing or convalescent
home expenses.
• Accidental death benefits . CORRECT ANSWER: A policy rider that states that
the cause of death will be analyzed to determine if it complies with the policy
description of accidental death.
• Accidental death insurance . CORRECT ANSWER: An insurance policy that
provides payment if the insured's death is the result of an accident.
• Accumulation Period . CORRECT ANSWER: The time before an annuitant's
retirement during which the annuitant is making payments or investments in an
annuity.
• Actual Cash Value (ACV) . CORRECT ANSWER: The required amount to pay
damages or for property loss, which is calculated based on the property's current
replacement value minus depreciation.
• Adhesion . CORRECT ANSWER: A contract offered on a "take-it-or-leave-it"
basis by an insurer, in which the insured's only option is to accept or reject the
contract. Any ambiguities in the contract will be settled in favor of the insured.
• Adjustable Life . CORRECT ANSWER: Life insurance which permits changes
in the face amount, premium amount, period of protection, and the duration of the
premium payment period.
, • Admitted (Authorized) Insurer . CORRECT ANSWER: An insurance company
authorized and licensed to transact business in a particular state.
• Adverse Selection . CORRECT ANSWER: The tendency of risks with higher
probability of loss to purchase and maintain insurance more often than the risks
who present lower probability.
• Agency . CORRECT ANSWER: An insurance sales office or company.
• Agent . CORRECT ANSWER: An individual who is licensed to sell, negotiate,
or effect insurance contracts on behalf of an insurer.
• Agent Appointment . CORRECT ANSWER: the authorization of an agent to act
for or represent an insurer
• Agent's Authority . CORRECT ANSWER: Special powers granted to an agent
by his or her agency contract.
• aleatory . CORRECT ANSWER: A contract in which participating parties
exchange unequal amounts. Insurance contracts are aleatory in that the amount the
insured will pay in premiums is unequal to the amount the insurer will pay in the
event of a loss.
• Alien Insurer . CORRECT ANSWER: An insurance company that is
incorporated outside the United States.
CORRECT Answers | UPDATED ACTUAL |
2026
• Accelerated Benefits . CORRECT ANSWER: Riders attached to life insurance
policies which allow death benefits to be used to cover nursing or convalescent
home expenses.
• Accidental death benefits . CORRECT ANSWER: A policy rider that states that
the cause of death will be analyzed to determine if it complies with the policy
description of accidental death.
• Accidental death insurance . CORRECT ANSWER: An insurance policy that
provides payment if the insured's death is the result of an accident.
• Accumulation Period . CORRECT ANSWER: The time before an annuitant's
retirement during which the annuitant is making payments or investments in an
annuity.
• Actual Cash Value (ACV) . CORRECT ANSWER: The required amount to pay
damages or for property loss, which is calculated based on the property's current
replacement value minus depreciation.
• Adhesion . CORRECT ANSWER: A contract offered on a "take-it-or-leave-it"
basis by an insurer, in which the insured's only option is to accept or reject the
contract. Any ambiguities in the contract will be settled in favor of the insured.
• Adjustable Life . CORRECT ANSWER: Life insurance which permits changes
in the face amount, premium amount, period of protection, and the duration of the
premium payment period.
, • Admitted (Authorized) Insurer . CORRECT ANSWER: An insurance company
authorized and licensed to transact business in a particular state.
• Adverse Selection . CORRECT ANSWER: The tendency of risks with higher
probability of loss to purchase and maintain insurance more often than the risks
who present lower probability.
• Agency . CORRECT ANSWER: An insurance sales office or company.
• Agent . CORRECT ANSWER: An individual who is licensed to sell, negotiate,
or effect insurance contracts on behalf of an insurer.
• Agent Appointment . CORRECT ANSWER: the authorization of an agent to act
for or represent an insurer
• Agent's Authority . CORRECT ANSWER: Special powers granted to an agent
by his or her agency contract.
• aleatory . CORRECT ANSWER: A contract in which participating parties
exchange unequal amounts. Insurance contracts are aleatory in that the amount the
insured will pay in premiums is unequal to the amount the insurer will pay in the
event of a loss.
• Alien Insurer . CORRECT ANSWER: An insurance company that is
incorporated outside the United States.
