1|Page
CALIFORNIA PRE-LICENSING
EDUCATION-LIFE,ACCIDENT AND
HEALTH INSURANCE ACTUAL 2026
EXAM ALL QUESTIONS AND
VERIFIED ANSWERS | RATED A + |
NEW AND REVISED
1. What is meant by referring to an insurance policy as a unilateral
contract? - ANSWER- *Only one party makes a legally enforceable
promise.
2. When must insurance records of insurance agents and brokers be
made available to the Insurance Commissioner? - ANSWER- *At all
times.
3. Any situation that presents the possibility of a loss is known as -
ANSWER- *a loss exposure
4. Which of the following information is not required to be
communicated
in a Life insurance contract? - ANSWER- *Personal judgment.
5.The direct distribution of insurance utilizes all of the following to
promote
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the sale of insurance EXCEPT - ANSWER- *telephone call from an
agent.
6. A contract in which one party promises to indemnify another against
loss
that arises from an unknown event is - ANSWER- *an insurance policy.
7. All of the occurrences listed below are examples of an insurable event
as
defined by the California Insurance Code EXCEPT - ANSWER- *an
insured suffers a financial loss in the state lottery
8. All of the following statements about aleatory contracts are true
EXCEPT - ANSWER- *the insured and insurer contribute equally to the
contract.
9.All of the following would be considered unfair trade practices
EXCEPT - ANSWER- *committing any act of discrimination whether it
be deemed fair or unfair.
10. 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? - ANSWER- *Mary Brown Insurance Services.
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11.A contract of indemnity is one in which - ANSWER- *one party is
restored to the same financial position the party was in
before the loss occurred.
12.In insurance terminology, "indemnity" means - ANSWER- *make
whole.
13. As defined in the California insurance Code, "insurance" is a -
ANSWER- *contract.
14. 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? - ANSWER- * A misdemeanor
15. 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? - ANSWER-
*Fiduciary
16. Which of the following statements regarding risk is TRUE? -
ANSWER- *Only pure risks are insurable.
17. The purchase of an insurance policy may accomplish all of the
following
for the insured EXCEPT - ANSWER- * the elimination of risk.
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18 .Insureds are entitled to recover an amount NOT greater than the
amount of their loss under the principle of - ANSWER- *indemnity.
19. What rule is used to determine the importance of a representation? -
ANSWER- *The materiality of concealment.
20.The required contents of a policy include all of the following
EXCEPT - ANSWER- *the probability of loss
21. All of the following are characteristics of reinsurance EXCEPT it -
ANSWER- *increases the unearned premium reserve.
22 .According to the California Insurance Code, an insurance policy
must
specify all of the following EXCEPT the - ANSWER- *financial rating
of the insurer.
23. All of the following qualify as "background information" as defined
in
Section 1729.2 of the California Insurance Code, EXCEPT - ANSWER-
*misdemeanor charges filed, not resulting in a conviction.
24.Loss retention is an effective risk management technique when all of
the
CALIFORNIA PRE-LICENSING
EDUCATION-LIFE,ACCIDENT AND
HEALTH INSURANCE ACTUAL 2026
EXAM ALL QUESTIONS AND
VERIFIED ANSWERS | RATED A + |
NEW AND REVISED
1. What is meant by referring to an insurance policy as a unilateral
contract? - ANSWER- *Only one party makes a legally enforceable
promise.
2. When must insurance records of insurance agents and brokers be
made available to the Insurance Commissioner? - ANSWER- *At all
times.
3. Any situation that presents the possibility of a loss is known as -
ANSWER- *a loss exposure
4. Which of the following information is not required to be
communicated
in a Life insurance contract? - ANSWER- *Personal judgment.
5.The direct distribution of insurance utilizes all of the following to
promote
,2|Page
the sale of insurance EXCEPT - ANSWER- *telephone call from an
agent.
6. A contract in which one party promises to indemnify another against
loss
that arises from an unknown event is - ANSWER- *an insurance policy.
7. All of the occurrences listed below are examples of an insurable event
as
defined by the California Insurance Code EXCEPT - ANSWER- *an
insured suffers a financial loss in the state lottery
8. All of the following statements about aleatory contracts are true
EXCEPT - ANSWER- *the insured and insurer contribute equally to the
contract.
9.All of the following would be considered unfair trade practices
EXCEPT - ANSWER- *committing any act of discrimination whether it
be deemed fair or unfair.
10. 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? - ANSWER- *Mary Brown Insurance Services.
,3|Page
11.A contract of indemnity is one in which - ANSWER- *one party is
restored to the same financial position the party was in
before the loss occurred.
12.In insurance terminology, "indemnity" means - ANSWER- *make
whole.
13. As defined in the California insurance Code, "insurance" is a -
ANSWER- *contract.
14. 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? - ANSWER- * A misdemeanor
15. 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? - ANSWER-
*Fiduciary
16. Which of the following statements regarding risk is TRUE? -
ANSWER- *Only pure risks are insurable.
17. The purchase of an insurance policy may accomplish all of the
following
for the insured EXCEPT - ANSWER- * the elimination of risk.
, 4|Page
18 .Insureds are entitled to recover an amount NOT greater than the
amount of their loss under the principle of - ANSWER- *indemnity.
19. What rule is used to determine the importance of a representation? -
ANSWER- *The materiality of concealment.
20.The required contents of a policy include all of the following
EXCEPT - ANSWER- *the probability of loss
21. All of the following are characteristics of reinsurance EXCEPT it -
ANSWER- *increases the unearned premium reserve.
22 .According to the California Insurance Code, an insurance policy
must
specify all of the following EXCEPT the - ANSWER- *financial rating
of the insurer.
23. All of the following qualify as "background information" as defined
in
Section 1729.2 of the California Insurance Code, EXCEPT - ANSWER-
*misdemeanor charges filed, not resulting in a conviction.
24.Loss retention is an effective risk management technique when all of
the
