1
CA LIFE INSURANCE EXAM WITH
100% CORRECT ANSWERS
2026-27 LATEST UPDATED VERSION
,2
What is meant by referring to an insurance policy as a unilateral contract? - correct 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? - correct answer ✔✔At all times.
Any situation that presents the possibility of a loss is known as - correct answer ✔✔a loss exposure
Which of the following information is not required to be communicated in a Life insurance contract? -
correct answer ✔✔Personal judgment.
The direct distribution of insurance utilizes all of the following to promote the sale of insurance EXCEPT -
correct 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 - correct answer ✔✔an insurance policy.
All of the occurrences listed below are examples of an insurable event as defined by the California
Insurance Code EXCEPT - correct answer ✔✔an insured suffers a financial loss in the state lottery
All of the following statements about aleatory contracts are true EXCEPT - correct answer ✔✔the
insured and insurer contribute equally to the contract.
All of the following would be considered unfair trade practices EXCEPT - correct answer ✔✔committing
any act of discrimination whether it be deemed fair or unfair.
, 3
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? - correct answer ✔✔Mary
Brown Insurance Services.
A contract of indemnity is one in which - correct answer ✔✔one party is restored to the same financial
position the party was in before the loss occurred.
In insurance terminology, "indemnity" means - correct answer ✔✔make whole.
As defined in the California insurance Code, "insurance" is a - correct 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? - correct 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? - correct
answer ✔✔Fiduciary
Which of the following statements regarding risk is TRUE? - correct answer ✔✔Only pure risks are
insurable.
The purchase of an insurance policy may accomplish all of the following for the insured EXCEPT - correct
answer ✔✔the elimination of risk.
Insureds are entitled to recover an amount NOT greater than the amount of their loss under the
principle of - correct answer ✔✔indemnity.
What rule is used to determine the importance of a representation? - correct answer ✔✔The materiality
of concealment.
CA LIFE INSURANCE EXAM WITH
100% CORRECT ANSWERS
2026-27 LATEST UPDATED VERSION
,2
What is meant by referring to an insurance policy as a unilateral contract? - correct 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? - correct answer ✔✔At all times.
Any situation that presents the possibility of a loss is known as - correct answer ✔✔a loss exposure
Which of the following information is not required to be communicated in a Life insurance contract? -
correct answer ✔✔Personal judgment.
The direct distribution of insurance utilizes all of the following to promote the sale of insurance EXCEPT -
correct 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 - correct answer ✔✔an insurance policy.
All of the occurrences listed below are examples of an insurable event as defined by the California
Insurance Code EXCEPT - correct answer ✔✔an insured suffers a financial loss in the state lottery
All of the following statements about aleatory contracts are true EXCEPT - correct answer ✔✔the
insured and insurer contribute equally to the contract.
All of the following would be considered unfair trade practices EXCEPT - correct answer ✔✔committing
any act of discrimination whether it be deemed fair or unfair.
, 3
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? - correct answer ✔✔Mary
Brown Insurance Services.
A contract of indemnity is one in which - correct answer ✔✔one party is restored to the same financial
position the party was in before the loss occurred.
In insurance terminology, "indemnity" means - correct answer ✔✔make whole.
As defined in the California insurance Code, "insurance" is a - correct 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? - correct 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? - correct
answer ✔✔Fiduciary
Which of the following statements regarding risk is TRUE? - correct answer ✔✔Only pure risks are
insurable.
The purchase of an insurance policy may accomplish all of the following for the insured EXCEPT - correct
answer ✔✔the elimination of risk.
Insureds are entitled to recover an amount NOT greater than the amount of their loss under the
principle of - correct answer ✔✔indemnity.
What rule is used to determine the importance of a representation? - correct answer ✔✔The materiality
of concealment.
