1|Page
CALIFORNIA LIFE, ACCIDENT AND HEALTH CRAM COURSE
FINAL EXAM 2025/2026 – COMPLETE QUESTION BANK WITH
DETAILED ANSWERS & STUDY GUIDE | EXPERT VERIFIED
FOR GUARANTEED PASS
Which of the following statements can always be made by an agent during
a tax qualified Long Term Care insurance policy presentation: - ANSWER-
The plan may receive federal and state tax advantages
As used in the California Insurance Code the use of the word "may" is: -
ANSWER-Permissive
Which of the following statements can always be made by an agent during
a tax qualified Long Term Care insurance policy presentation: - ANSWER-
The plan may receive federal and state tax advantages
When an insurer wants to have the applicant complete an HIV test, they
must do all of the following except: - ANSWER-Go over a privacy notice
If a whole life policy is being kept in-force by the Waiver of Premium rider: -
ANSWER-The cash value will continue to increase as if the insured paid
the premium
The enactment of the Pregnancy Discrimination Act had which of the
following effects on group health insurance: - ANSWER-Pregnancy of an
employee must be treated in the same manner as any other health
condition
Engaging in which of the following avocations will not cause a life insurer to
reject or rate-up an applicant: - ANSWER-Roller blading
The provision that applies in group insurance when an insured has
coverage under multiple plans at one time is known as: - ANSWER-
Coordination of benefits
2025/2026
,2|Page
In Group Health insurance, the period of time that starts when a new
employee is hired and ends on the date they become eligible for the
employer's Group Health plan is the: - ANSWER-Probationary period
Variable annuity premiums may be invested in all of the following EXCEPT:
- ANSWER-Agent's interest bearing trust account
Before obtaining an HIV test the insurer must do which of the following: -
ANSWER-Have the applicant sign a consent form
HMOs are required to cover all of the following except: - ANSWER-
Prescription drugs
At what point in time may a representation be altered or withdrawn: -
ANSWER-Prior to the insurance going into effect only
If a corporation uses life insurance to buy shares under a buy-sell
agreement, which of the following is true regarding taxation: - ANSWER-It
is treated as a loss or gain if they are common stock
All of the following must be disclosed in Internet advertising EXCEPT an
agent's: - ANSWER-Phone number
When the pricing principle is defined in a disability policy by the financial
loss on a certain group of people occurring over a certain period of time it is
known as: - ANSWER-Frequency
Dread (Specified) Disease policies covers which of the following: -
ANSWER-Treatment for one specific disease
Which of the following criteria must be used to classify an injury as
accidental under a disability income policy? - ANSWER-The cause of the
injury may be intentional, but the result of the injury must be accidental
Which of the following terms used in the California Insurance Code is
mandatory: - ANSWER-Shall
2025/2026
, 3|Page
An insurance company entitled to transact business by complying with the
California insurance Code (CIC) is known as: - ANSWER-An admitted
carrier
What type of policy has both a Capital and Principal sum: - ANSWER-
Accidental Death and Dismemberment (AD&D) insurance
What rider allows the insured to purchase additional amounts of insurance
at specific intervals without having to prove insurability - ANSWER-
Guaranteed insurability
If the owner of an annuity has to multiply the value of an accumulation unit
held in the separate account by the number of accumulation units owned,
the customer has a: - ANSWER-Variable annuity
In a disability income policy, the commonly used 30 day, 60 day, 90 day
and 180 day terminology refers to the: - ANSWER-Number of days which
no benefits will be paid
In a Medicare claim, what is the first step in the process: - ANSWER-The
individual's provider files the claim with a local Medicare carrier
When the parties to a contract depend upon the statements made by one
another, the contract is based upon the Doctrine of: - ANSWER-Utmost
Good Faith
All of the following are true about 'stock' insurance companies EXCEPT: -
ANSWER-They issue participating policies
All of the following are true about an insurance broker except: - ANSWER-
A broker is appointed by an insurer
The formula that is used to determine how much is taxable during the
payout is the: - ANSWER-Exclusion ratio
If an agent hires a website designer to create his new website, who is
responsible for the website content: - ANSWER-The agent
2025/2026
CALIFORNIA LIFE, ACCIDENT AND HEALTH CRAM COURSE
FINAL EXAM 2025/2026 – COMPLETE QUESTION BANK WITH
DETAILED ANSWERS & STUDY GUIDE | EXPERT VERIFIED
FOR GUARANTEED PASS
Which of the following statements can always be made by an agent during
a tax qualified Long Term Care insurance policy presentation: - ANSWER-
The plan may receive federal and state tax advantages
As used in the California Insurance Code the use of the word "may" is: -
ANSWER-Permissive
Which of the following statements can always be made by an agent during
a tax qualified Long Term Care insurance policy presentation: - ANSWER-
The plan may receive federal and state tax advantages
When an insurer wants to have the applicant complete an HIV test, they
must do all of the following except: - ANSWER-Go over a privacy notice
If a whole life policy is being kept in-force by the Waiver of Premium rider: -
ANSWER-The cash value will continue to increase as if the insured paid
the premium
The enactment of the Pregnancy Discrimination Act had which of the
following effects on group health insurance: - ANSWER-Pregnancy of an
employee must be treated in the same manner as any other health
condition
Engaging in which of the following avocations will not cause a life insurer to
reject or rate-up an applicant: - ANSWER-Roller blading
The provision that applies in group insurance when an insured has
coverage under multiple plans at one time is known as: - ANSWER-
Coordination of benefits
2025/2026
,2|Page
In Group Health insurance, the period of time that starts when a new
employee is hired and ends on the date they become eligible for the
employer's Group Health plan is the: - ANSWER-Probationary period
Variable annuity premiums may be invested in all of the following EXCEPT:
- ANSWER-Agent's interest bearing trust account
Before obtaining an HIV test the insurer must do which of the following: -
ANSWER-Have the applicant sign a consent form
HMOs are required to cover all of the following except: - ANSWER-
Prescription drugs
At what point in time may a representation be altered or withdrawn: -
ANSWER-Prior to the insurance going into effect only
If a corporation uses life insurance to buy shares under a buy-sell
agreement, which of the following is true regarding taxation: - ANSWER-It
is treated as a loss or gain if they are common stock
All of the following must be disclosed in Internet advertising EXCEPT an
agent's: - ANSWER-Phone number
When the pricing principle is defined in a disability policy by the financial
loss on a certain group of people occurring over a certain period of time it is
known as: - ANSWER-Frequency
Dread (Specified) Disease policies covers which of the following: -
ANSWER-Treatment for one specific disease
Which of the following criteria must be used to classify an injury as
accidental under a disability income policy? - ANSWER-The cause of the
injury may be intentional, but the result of the injury must be accidental
Which of the following terms used in the California Insurance Code is
mandatory: - ANSWER-Shall
2025/2026
, 3|Page
An insurance company entitled to transact business by complying with the
California insurance Code (CIC) is known as: - ANSWER-An admitted
carrier
What type of policy has both a Capital and Principal sum: - ANSWER-
Accidental Death and Dismemberment (AD&D) insurance
What rider allows the insured to purchase additional amounts of insurance
at specific intervals without having to prove insurability - ANSWER-
Guaranteed insurability
If the owner of an annuity has to multiply the value of an accumulation unit
held in the separate account by the number of accumulation units owned,
the customer has a: - ANSWER-Variable annuity
In a disability income policy, the commonly used 30 day, 60 day, 90 day
and 180 day terminology refers to the: - ANSWER-Number of days which
no benefits will be paid
In a Medicare claim, what is the first step in the process: - ANSWER-The
individual's provider files the claim with a local Medicare carrier
When the parties to a contract depend upon the statements made by one
another, the contract is based upon the Doctrine of: - ANSWER-Utmost
Good Faith
All of the following are true about 'stock' insurance companies EXCEPT: -
ANSWER-They issue participating policies
All of the following are true about an insurance broker except: - ANSWER-
A broker is appointed by an insurer
The formula that is used to determine how much is taxable during the
payout is the: - ANSWER-Exclusion ratio
If an agent hires a website designer to create his new website, who is
responsible for the website content: - ANSWER-The agent
2025/2026
