FINAL EXAM - CALIFORNIA LIFE AND
HEALTH COMPLETE EXAM PREP STUDY
GUIDE WITH PRACTICE QUESTIONS,
ANSWERS AND COMPREHENSIVE
INSURANCE LICENSE REVIEW | GRADED
A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers | 100% Verified
Exam Prep
,Which whole life policy premium type is the most common? continuous premium
All life insurance and health insurance contracts contain all of Representations
the following EXCEPT
3 multiple choice options
An insurer that has been found using higher rates based on unfair discrimination
race,religion, or ethnicity is said to be engaging in 3 multiple choice options
The California Insurance Code defines "policy" as a(n) written contract
3 multiple choice options
what is the definition of premium? Money an insured pays an insurer to obtain the benefits provided in the policy.
What is the primary source of information used by insurers to Application
assess risk and determine premiums in life, accident, and
3 multiple choice options
health insurance?
How does an "admitted" person differ from an "nonadmitted" An "admitted" person has the right to transact insurance business within the state, while a
person, as it pertains to insurance? "nonadmitted" person is not entitled to this action.
3 multiple choice options
As a broker, you are assisting your client in finding appropriate admitted insurer.
insurance coverage. In order to ensure that the company
3 multiple choice options
offering the insurance is authorized to do so in their state, you
should look for a(an)
An insurer entitled to transact business by complying with the admitted insurer.
California Insurance Code is known as a:
A Canadian insurer that benefits shareholders and is approved Admitted Alien Stock Company
to operate in a U.S. state would be classified as which type of
3 multiple choice options
insurer?
Which is the difference between participating and non- Participating policies pay dividends while non-participating policies do not.
participating policies? 3 multiple choice options
,John owns an insurance company that gives him the right to Participating
share and then share surplus. What kind of policy is this?
3 multiple choice options
When a mutual insurer becomes a stock company, the process Demutualization
is called 3 multiple choice options
A person who asserts a right of recovery under an insurance claimant
policy is called a 3 multiple choice options
In California, an insurer organized under the state laws of foreign insurer
Oregon is called a(n)
3 multiple choice options
Under the California Insurance Code, a licensee's license The same size print as the licensee's phone number, fax number or address
number must be printed at what size on all price quotes, 3 multiple choice options
business cards, and printed material?
As an insurance agent, you are convicted of a crime involving 18 USC Sections 1033 and 1034
dishonesty or breach of trust. To continue working in the
3 multiple choice options
industry, you must obtain written consent from an insurance
regulatory official according to which federal law?
According to the California insurance code, the commissioner name is the licensee's actual name
can disapprove a licensee's request to use a fictitious name for
any of the following reasons EXCEPT that the
All of the following are requirements of contract EXCEPT there must be equal consideration between the parties
If an insurer must have its rates accepted by the insurance prior approval
Department prior to using them, the insurer would be
operating in which of the following types of jurisdictions?
it is federal offense for an insurance agent to do all of the misrepresent facts on an insurance application
following EXCEPT
How often MUST an insurer file the National Association of annually
Insurance Commissioners (NAIC) financial statement?
, According to the California Insurance Code, what is the $5,000
maximum penalty per violation for anyone who unwilfully
3 multiple choice options
commits an unfair method of competition?
Section 1729.2 of the California Insurance Code requires 30
insurance producer applications and licensees to notify the
Insurance Commissioner in writing, within ___days of charges in
background information after an application has been
submitted or a license has been issued.
How long must life agents keep the transaction records? 5 years
3 multiple choice options
What is required after a life agent sells an insurance policy to Notice of appointment must be submitted to the Commissioner
an applicant without being appointed by the insurer? 3 multiple choice options
Anyone employed in California to assist an insurance agent in solicitor
transacting insurance is called an insurance
The California insurance code has authorized standards for Lance Manyon, CLU
names used by life insurance agents. Which of the following, if
3 multiple choice options
any, are automatically acceptable for Lance Manyon, a holder
of the CLU designation?
As authorized by the California Insurance Code, the Insurance Mary Brown, CLU Insurance services
Commissioner has provided standards for names used by life 3 multiple choice options
insurance agents. Under these standards which, if any, of the
following are automatically acceptable for Mary Brown, a
holder of the CLU designation?
according to the California insurance code, if an insurer's using Guarantee Funds to pay salaries
certificate of authority is revoked, the Commissioner can
proceed with any of the following EXCEPT
Pete is a life agent who has misappropriated fiduciary funds to Fiduciary misappropriation
his own use. What is Pete guilty of? 3 multiple choice options
HEALTH COMPLETE EXAM PREP STUDY
GUIDE WITH PRACTICE QUESTIONS,
ANSWERS AND COMPREHENSIVE
INSURANCE LICENSE REVIEW | GRADED
A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers | 100% Verified
Exam Prep
,Which whole life policy premium type is the most common? continuous premium
All life insurance and health insurance contracts contain all of Representations
the following EXCEPT
3 multiple choice options
An insurer that has been found using higher rates based on unfair discrimination
race,religion, or ethnicity is said to be engaging in 3 multiple choice options
The California Insurance Code defines "policy" as a(n) written contract
3 multiple choice options
what is the definition of premium? Money an insured pays an insurer to obtain the benefits provided in the policy.
What is the primary source of information used by insurers to Application
assess risk and determine premiums in life, accident, and
3 multiple choice options
health insurance?
How does an "admitted" person differ from an "nonadmitted" An "admitted" person has the right to transact insurance business within the state, while a
person, as it pertains to insurance? "nonadmitted" person is not entitled to this action.
3 multiple choice options
As a broker, you are assisting your client in finding appropriate admitted insurer.
insurance coverage. In order to ensure that the company
3 multiple choice options
offering the insurance is authorized to do so in their state, you
should look for a(an)
An insurer entitled to transact business by complying with the admitted insurer.
California Insurance Code is known as a:
A Canadian insurer that benefits shareholders and is approved Admitted Alien Stock Company
to operate in a U.S. state would be classified as which type of
3 multiple choice options
insurer?
Which is the difference between participating and non- Participating policies pay dividends while non-participating policies do not.
participating policies? 3 multiple choice options
,John owns an insurance company that gives him the right to Participating
share and then share surplus. What kind of policy is this?
3 multiple choice options
When a mutual insurer becomes a stock company, the process Demutualization
is called 3 multiple choice options
A person who asserts a right of recovery under an insurance claimant
policy is called a 3 multiple choice options
In California, an insurer organized under the state laws of foreign insurer
Oregon is called a(n)
3 multiple choice options
Under the California Insurance Code, a licensee's license The same size print as the licensee's phone number, fax number or address
number must be printed at what size on all price quotes, 3 multiple choice options
business cards, and printed material?
As an insurance agent, you are convicted of a crime involving 18 USC Sections 1033 and 1034
dishonesty or breach of trust. To continue working in the
3 multiple choice options
industry, you must obtain written consent from an insurance
regulatory official according to which federal law?
According to the California insurance code, the commissioner name is the licensee's actual name
can disapprove a licensee's request to use a fictitious name for
any of the following reasons EXCEPT that the
All of the following are requirements of contract EXCEPT there must be equal consideration between the parties
If an insurer must have its rates accepted by the insurance prior approval
Department prior to using them, the insurer would be
operating in which of the following types of jurisdictions?
it is federal offense for an insurance agent to do all of the misrepresent facts on an insurance application
following EXCEPT
How often MUST an insurer file the National Association of annually
Insurance Commissioners (NAIC) financial statement?
, According to the California Insurance Code, what is the $5,000
maximum penalty per violation for anyone who unwilfully
3 multiple choice options
commits an unfair method of competition?
Section 1729.2 of the California Insurance Code requires 30
insurance producer applications and licensees to notify the
Insurance Commissioner in writing, within ___days of charges in
background information after an application has been
submitted or a license has been issued.
How long must life agents keep the transaction records? 5 years
3 multiple choice options
What is required after a life agent sells an insurance policy to Notice of appointment must be submitted to the Commissioner
an applicant without being appointed by the insurer? 3 multiple choice options
Anyone employed in California to assist an insurance agent in solicitor
transacting insurance is called an insurance
The California insurance code has authorized standards for Lance Manyon, CLU
names used by life insurance agents. Which of the following, if
3 multiple choice options
any, are automatically acceptable for Lance Manyon, a holder
of the CLU designation?
As authorized by the California Insurance Code, the Insurance Mary Brown, CLU Insurance services
Commissioner has provided standards for names used by life 3 multiple choice options
insurance agents. Under these standards which, if any, of the
following are automatically acceptable for Mary Brown, a
holder of the CLU designation?
according to the California insurance code, if an insurer's using Guarantee Funds to pay salaries
certificate of authority is revoked, the Commissioner can
proceed with any of the following EXCEPT
Pete is a life agent who has misappropriated fiduciary funds to Fiduciary misappropriation
his own use. What is Pete guilty of? 3 multiple choice options
