CA LIFE AND HEALTH INSURANCE EXAM |
QUESTIONS AND VERIFIED ANSWERS
GRADED A+ | 100% PASS | 2026 UPDATE!
How often MUST an insurer file the National Association of Insurance
Commissioners (NAIC) financial statement? - ANSWER Annually.
The insured bought an annuity ten years ago. He will retire in five years.
To determine the value of his annuity, he must multiply the value of the
"accumulation units" he owns, times the value of the "separate
account". This type of annuity is known as a - ANSWER variable
annuity.
All of the following are true about term life insurance policies EXCEPT
the - ANSWER face amount is paid if the insured survives to the end
of the policy period.
A person owns a life annuity. He elects to receive his annuity payments
monthly for the remainder of his life with "ten years certain". The
annuity will make payments - ANSWER for a minimum of 120 months
and a maximum of the remainder of his life.
,The direct response distribution of Insurance utilizes all of the following
to promote the sales of insurance EXCEPT - ANSWER telephone call
from the agent.
The increase in the probability of a loss resulting from an insured's
dishonest tendencies is known as - ANSWER moral hazard.
A life insurance policy dividend is - ANSWER legally defined as a return
of excess premium and not taxable.
A person authorized by and on behalf of an insurer who transacts life,
disability or life and accident and health insurance is defined as a -
ANSWER life agent.
An insurer entitled to transact business by complying with the
California Insurance Code is known as an - ANSWER admitted carrier.
Who are the members of the Medical Information Bureau? - ANSWER
Life and Health insurers.
If you have been convicted of a misdemeanor and that misdemeanor
conviction is later expunged pursuant to California Penal Code Section
1203.4, which of the following is true? - ANSWER Even though your
misdemeanor conviction was expunged, you must still disclose your
, misdemeanor conviction on your individual application for an insurance
license.
Which is an agreement in which an insurer contacts with a third party
to insure itself against losses from insurance policies it issues? -
ANSWER Reinsurance
Which if the following would an agent be guilty of for misrepresenting
the amount of dividends a policy will pay? - ANSWER A misdemeanor.
What rule is used to determine the importance of a representation? -
ANSWER The materiality of concealment.
Which of the following is a hazard? - ANSWER A condition that may
increase the likelihood of a loss occurring.
When are parties to a contract REQUIRED to communicate information
solely based on personal judgment for a matter in question? - ANSWER
Never
According to the California Insurance Code, if an insurer's certificate of
authority is revoked, the Commissioner can proceed with any of the
following actions EXCEPT - ANSWER using Guarantee Funds to pay
salaries.
QUESTIONS AND VERIFIED ANSWERS
GRADED A+ | 100% PASS | 2026 UPDATE!
How often MUST an insurer file the National Association of Insurance
Commissioners (NAIC) financial statement? - ANSWER Annually.
The insured bought an annuity ten years ago. He will retire in five years.
To determine the value of his annuity, he must multiply the value of the
"accumulation units" he owns, times the value of the "separate
account". This type of annuity is known as a - ANSWER variable
annuity.
All of the following are true about term life insurance policies EXCEPT
the - ANSWER face amount is paid if the insured survives to the end
of the policy period.
A person owns a life annuity. He elects to receive his annuity payments
monthly for the remainder of his life with "ten years certain". The
annuity will make payments - ANSWER for a minimum of 120 months
and a maximum of the remainder of his life.
,The direct response distribution of Insurance utilizes all of the following
to promote the sales of insurance EXCEPT - ANSWER telephone call
from the agent.
The increase in the probability of a loss resulting from an insured's
dishonest tendencies is known as - ANSWER moral hazard.
A life insurance policy dividend is - ANSWER legally defined as a return
of excess premium and not taxable.
A person authorized by and on behalf of an insurer who transacts life,
disability or life and accident and health insurance is defined as a -
ANSWER life agent.
An insurer entitled to transact business by complying with the
California Insurance Code is known as an - ANSWER admitted carrier.
Who are the members of the Medical Information Bureau? - ANSWER
Life and Health insurers.
If you have been convicted of a misdemeanor and that misdemeanor
conviction is later expunged pursuant to California Penal Code Section
1203.4, which of the following is true? - ANSWER Even though your
misdemeanor conviction was expunged, you must still disclose your
, misdemeanor conviction on your individual application for an insurance
license.
Which is an agreement in which an insurer contacts with a third party
to insure itself against losses from insurance policies it issues? -
ANSWER Reinsurance
Which if the following would an agent be guilty of for misrepresenting
the amount of dividends a policy will pay? - ANSWER A misdemeanor.
What rule is used to determine the importance of a representation? -
ANSWER The materiality of concealment.
Which of the following is a hazard? - ANSWER A condition that may
increase the likelihood of a loss occurring.
When are parties to a contract REQUIRED to communicate information
solely based on personal judgment for a matter in question? - ANSWER
Never
According to the California Insurance Code, if an insurer's certificate of
authority is revoked, the Commissioner can proceed with any of the
following actions EXCEPT - ANSWER using Guarantee Funds to pay
salaries.
