California Life and Health Insurance Final Exam 2026
Latest Update |Complete Actual Exam Questions with
Verified Correct Answers Answers - Graded A+
Medical expense premiums paid by sole proprietors or partners are? - Correct Answer - They
are fully deductible.
What is the Eligibility of a Qualified Plan? - Correct Answer - ERISA prescribes that all full
time employees who have worked for at least 1 year and are age 21 or more must be covered in a
Qualified Plan, if offered.
If an insurance contract has "variable" features, which set of laws does it come under? - Correct
Answer - It is under the Federal Securities Laws. They have met the definition of a security as
defined by the Federal Securities Act of 1933.
What insurance product has a flexible premium, fixed rate of return, tax deferred growth and a
death benefit equal to the cash value? - Correct Answer - A flexible premium deferred annuity.
What is "Whole Life" insurance? - Correct Answer - It is sometimes called "Cash Value" life
insurance and is considered to be permanent. It covers you until you die or until the policy
reaches maturity, which is normally age 100. A Whole Life policy cannot be changed without
the client's consent and it never has to be renewed, although the premium may be paid annually
or even more frequently. Whole Life is said to have a relatively low net cost, since it does
develop a cash value after the third year that belongs to the policyholder while living. However,
upon death of the insured, the policy will pay the "face amount" (policy limit), but the company
will keep the accumulated cash value.
Disability Income policies often do not begin paying benefits immediately when an insured
person becomes disabled. Usually, the disability must continue for a period of time before
benefits begin. The period is known as the? - Correct Answer - Elimination Period.
1
,A contract where only one party, the insurer, makes an enforceable promise is said to be? -
Correct Answer - Unilateral
A survivorship life insurance policy will pay benefits when the? - Correct Answer - The last
party dies.
Speculative risk has a chance of? - Correct Answer - gain or loss.
Nursing home coverage under Medicaid is based on? - Correct Answer - Financial Need.
How many "classes" of insurance are in California? - Correct Answer - There are 20 specific
classes of insurance.
An insurance company that issues participating policies? - Correct Answer - A Mutual
Insurance company
Most assignments of a life-insurance policy are made in order to protect the? - Correct Answer -
The insured's personal or business credit.
On an HMO, initial care and consultation is performed by... - Correct Answer - The primary
care physician.
Federal securities laws are enforced by? - Correct Answer - The Securities and Exchange
Commission.
Policy delivery refers to the delivery of the? - Correct Answer - Completed insurance policy to
the applicant.
The 'carry-over-deductible' applies to claims occurring within? - Correct Answer - The last
three months of the year.
2
,In general Group Life Insurance is? - Correct Answer - The most inexpensive type of life
insurance, since it is usually sold to employer groups on a payroll deduction plan, which lowers
the cost of administration compared to individual policies.
Ryder buys an annuity naming Gerry and Cheryl as co-annuitants. The amount of the monthly
payments during the annuity period will be based upon? - Correct Answer - The joint life span
of both Gerry and Cheryl.
What are Nonprofit Service Organization (Insurers)? - Correct Answer - They are organizations
providing prepaid plans for hospital, medical, and surgical expenses.
What changes on a Term Life insurance policy when an insured exercises the "Reentry" option? -
Correct Answer - Premium.
The period of time between the onset of a claim and the start of a disability income benefits is
called the? - Correct Answer - Elimination period (Or waiting period).
What is Part B-Hospital Insurance for Medicare? - Correct Answer - Sometimes called
Supplementary Medical Insurance (SMI) since it supplements Part A. Part B (the optional
portion) is generally designed to cover physicians' services.
An insurance company organized in Great Britain doing business in California is considered to
be? - Correct Answer - Alien
On a refund annuity, who is entitled to the refund? - Correct Answer - The beneficiary.
What is Modified Premium and Graded Premium Whole Life? - Correct Answer - Since level
premium whole life is expensive, many insurers offer premium discounts during the early years
of a policy to make it easier to sell.
3
, What does an annuity provide to a retired person? - Correct Answer - They provide protection
for a retired individual from outliving their savings.
Persons covered by Medicare are called? - Correct Answer - Beneficiaries.
What are Stock Insurers? - Correct Answer - The individual stockholder provides capital for the
insurer. In return, they share in any profits and any losses.
An insurance prospect wants to purchase a policy that will accumulate the largest amount of cash
by the age of 65. Which policy would be most likely to satisfy the prospect's needs? - Correct
Answer - Endowment at age 65.
If the insured/owner of the policy does not pre-designate a settlement option for the beneficiary
prior to death, the beneficiary may? - Correct Answer - The beneficiary may select the
settlement option upon the death of the insured.
When only one deductible applies to all family members it is referred to as a? - Correct Answer
- Family deductible.
With regard to the ethical behavior of a Life agent, which of the following makes it easier for
agents to conduct themselves in an ethical manner? - Correct Answer - Always putting the best
interests of clients and policyholders first.
What is Limited Payment and Single Premium (Whole Life)? - Correct Answer - These policies
are exactly like Ordinary or Stright Life policies, except, the premium is paid over a shorter
period of time.
What is an Endowment Policy? - Correct Answer - An endowment policy is exactly the same as
a Whole Life policy, except maturity occurs at a predetermined time selected by the insured.
4
Latest Update |Complete Actual Exam Questions with
Verified Correct Answers Answers - Graded A+
Medical expense premiums paid by sole proprietors or partners are? - Correct Answer - They
are fully deductible.
What is the Eligibility of a Qualified Plan? - Correct Answer - ERISA prescribes that all full
time employees who have worked for at least 1 year and are age 21 or more must be covered in a
Qualified Plan, if offered.
If an insurance contract has "variable" features, which set of laws does it come under? - Correct
Answer - It is under the Federal Securities Laws. They have met the definition of a security as
defined by the Federal Securities Act of 1933.
What insurance product has a flexible premium, fixed rate of return, tax deferred growth and a
death benefit equal to the cash value? - Correct Answer - A flexible premium deferred annuity.
What is "Whole Life" insurance? - Correct Answer - It is sometimes called "Cash Value" life
insurance and is considered to be permanent. It covers you until you die or until the policy
reaches maturity, which is normally age 100. A Whole Life policy cannot be changed without
the client's consent and it never has to be renewed, although the premium may be paid annually
or even more frequently. Whole Life is said to have a relatively low net cost, since it does
develop a cash value after the third year that belongs to the policyholder while living. However,
upon death of the insured, the policy will pay the "face amount" (policy limit), but the company
will keep the accumulated cash value.
Disability Income policies often do not begin paying benefits immediately when an insured
person becomes disabled. Usually, the disability must continue for a period of time before
benefits begin. The period is known as the? - Correct Answer - Elimination Period.
1
,A contract where only one party, the insurer, makes an enforceable promise is said to be? -
Correct Answer - Unilateral
A survivorship life insurance policy will pay benefits when the? - Correct Answer - The last
party dies.
Speculative risk has a chance of? - Correct Answer - gain or loss.
Nursing home coverage under Medicaid is based on? - Correct Answer - Financial Need.
How many "classes" of insurance are in California? - Correct Answer - There are 20 specific
classes of insurance.
An insurance company that issues participating policies? - Correct Answer - A Mutual
Insurance company
Most assignments of a life-insurance policy are made in order to protect the? - Correct Answer -
The insured's personal or business credit.
On an HMO, initial care and consultation is performed by... - Correct Answer - The primary
care physician.
Federal securities laws are enforced by? - Correct Answer - The Securities and Exchange
Commission.
Policy delivery refers to the delivery of the? - Correct Answer - Completed insurance policy to
the applicant.
The 'carry-over-deductible' applies to claims occurring within? - Correct Answer - The last
three months of the year.
2
,In general Group Life Insurance is? - Correct Answer - The most inexpensive type of life
insurance, since it is usually sold to employer groups on a payroll deduction plan, which lowers
the cost of administration compared to individual policies.
Ryder buys an annuity naming Gerry and Cheryl as co-annuitants. The amount of the monthly
payments during the annuity period will be based upon? - Correct Answer - The joint life span
of both Gerry and Cheryl.
What are Nonprofit Service Organization (Insurers)? - Correct Answer - They are organizations
providing prepaid plans for hospital, medical, and surgical expenses.
What changes on a Term Life insurance policy when an insured exercises the "Reentry" option? -
Correct Answer - Premium.
The period of time between the onset of a claim and the start of a disability income benefits is
called the? - Correct Answer - Elimination period (Or waiting period).
What is Part B-Hospital Insurance for Medicare? - Correct Answer - Sometimes called
Supplementary Medical Insurance (SMI) since it supplements Part A. Part B (the optional
portion) is generally designed to cover physicians' services.
An insurance company organized in Great Britain doing business in California is considered to
be? - Correct Answer - Alien
On a refund annuity, who is entitled to the refund? - Correct Answer - The beneficiary.
What is Modified Premium and Graded Premium Whole Life? - Correct Answer - Since level
premium whole life is expensive, many insurers offer premium discounts during the early years
of a policy to make it easier to sell.
3
, What does an annuity provide to a retired person? - Correct Answer - They provide protection
for a retired individual from outliving their savings.
Persons covered by Medicare are called? - Correct Answer - Beneficiaries.
What are Stock Insurers? - Correct Answer - The individual stockholder provides capital for the
insurer. In return, they share in any profits and any losses.
An insurance prospect wants to purchase a policy that will accumulate the largest amount of cash
by the age of 65. Which policy would be most likely to satisfy the prospect's needs? - Correct
Answer - Endowment at age 65.
If the insured/owner of the policy does not pre-designate a settlement option for the beneficiary
prior to death, the beneficiary may? - Correct Answer - The beneficiary may select the
settlement option upon the death of the insured.
When only one deductible applies to all family members it is referred to as a? - Correct Answer
- Family deductible.
With regard to the ethical behavior of a Life agent, which of the following makes it easier for
agents to conduct themselves in an ethical manner? - Correct Answer - Always putting the best
interests of clients and policyholders first.
What is Limited Payment and Single Premium (Whole Life)? - Correct Answer - These policies
are exactly like Ordinary or Stright Life policies, except, the premium is paid over a shorter
period of time.
What is an Endowment Policy? - Correct Answer - An endowment policy is exactly the same as
a Whole Life policy, except maturity occurs at a predetermined time selected by the insured.
4
