CA LIFE INSURANCE QUESTION BANK 2026
PROFESSIONAL REVIEW MATERIAL
SOLUTIONS UPDATED A+
◉ Which of the following is NOT a risk classification that an
underwriter would use?
Answer: Dividend risk
◉ Pete is a life agent who has misappropriated fiduciary funds to his
own use. What is Pete guilty of?
Answer: Theft
◉ An insurer that has been found using higher rates based on race,
religion, or ethnicity is said to be engaging in
Answer: unfair discrimination
◉ During the underwriting process for a group health policy, it was
discovered that 15 out of 50 members of the group have major
health issues. How would the insurer handle this?
Answer: Accept or reject the whole group
, ◉ When a life insurance policy is surrendered, how does the cost
recovery rule apply?
Answer: The policy's cost basis is exempt from taxation
◉ When calculating life insurance premium rates, which component
is affected by an insured's age and gender?
Answer: Mortality
◉ An applicant has revealed conditions that require more
information. Which of the following is needed next?
Answer: Attending physician's statement
◉ Which of the following healthcare providers provides both the
healthcare services and healthcare coverage?
Answer: Health Maintenance Organization (HMO)
◉ After the annual deductible is met, a Medicare Part B patient will
pay ___ of the remaining covered expenses.
Answer: 20%
◉ When an insurer has met the qualifications necessary to transact
business in California, it is said to be
Answer: admitted
PROFESSIONAL REVIEW MATERIAL
SOLUTIONS UPDATED A+
◉ Which of the following is NOT a risk classification that an
underwriter would use?
Answer: Dividend risk
◉ Pete is a life agent who has misappropriated fiduciary funds to his
own use. What is Pete guilty of?
Answer: Theft
◉ An insurer that has been found using higher rates based on race,
religion, or ethnicity is said to be engaging in
Answer: unfair discrimination
◉ During the underwriting process for a group health policy, it was
discovered that 15 out of 50 members of the group have major
health issues. How would the insurer handle this?
Answer: Accept or reject the whole group
, ◉ When a life insurance policy is surrendered, how does the cost
recovery rule apply?
Answer: The policy's cost basis is exempt from taxation
◉ When calculating life insurance premium rates, which component
is affected by an insured's age and gender?
Answer: Mortality
◉ An applicant has revealed conditions that require more
information. Which of the following is needed next?
Answer: Attending physician's statement
◉ Which of the following healthcare providers provides both the
healthcare services and healthcare coverage?
Answer: Health Maintenance Organization (HMO)
◉ After the annual deductible is met, a Medicare Part B patient will
pay ___ of the remaining covered expenses.
Answer: 20%
◉ When an insurer has met the qualifications necessary to transact
business in California, it is said to be
Answer: admitted
