CA Life and Health Exam 2026 Questions
and Answers
What is insurance? - Correct Answer -Insurance is the legal contract where two
parties agree that if something will happen, a value will be exchanged.
What's the difference between pure risk and speculative risk? - Correct Answer -
Pure risk is when you'll lose it all or there will be no change. Speculative risk you
can either win or lose.
What is peril? - Correct Answer -peril is the causes of loss insured against in an
insurance policy
What is hazard? - Correct Answer -conditions that increase the probability of
something bad happening
What's the diff between moral, morale, and physical hazard? - Correct Answer -
physical is the hazard that results from physical body issues. Moral hazard is the
evaluation of character (lying) morale hazard is an indifference which causes risk.
What is the law of large numbers? - Correct Answer -the larger the number of
people more exposed to risk, the more predictable the risk outcome.
©COPYRIGHT 2025 ALL RIGHTS RESERVED 1
, What is an insurable event? - Correct Answer -the more predictable an event, the
more insurable it becomes
What's the diff between contract and tort law - Correct Answer -tort is non-contract
and private
Four major elements of a contract - Correct Answer -agreement, consideration,
competent parties, legal purpose
contract of adhesion - Correct Answer -prepared by insurer then accepted or
rejected
Conditional contract - Correct Answer -conditions need to be met in order for
contract to be executed
aleatory contract - Correct Answer -exchange of unequal amounts of value
unilateral contract - Correct Answer -only one party is forced to do something
personal contract - Correct Answer -can't be transferred w/out notifying insurer
When can you rescind a contract - Correct Answer -intentional or unintentional
concealment, violation of material warranty, false material representation
six specifications for insurance policies - Correct Answer -parties contracted
person insured
©COPYRIGHT 2025 ALL RIGHTS RESERVED 2
and Answers
What is insurance? - Correct Answer -Insurance is the legal contract where two
parties agree that if something will happen, a value will be exchanged.
What's the difference between pure risk and speculative risk? - Correct Answer -
Pure risk is when you'll lose it all or there will be no change. Speculative risk you
can either win or lose.
What is peril? - Correct Answer -peril is the causes of loss insured against in an
insurance policy
What is hazard? - Correct Answer -conditions that increase the probability of
something bad happening
What's the diff between moral, morale, and physical hazard? - Correct Answer -
physical is the hazard that results from physical body issues. Moral hazard is the
evaluation of character (lying) morale hazard is an indifference which causes risk.
What is the law of large numbers? - Correct Answer -the larger the number of
people more exposed to risk, the more predictable the risk outcome.
©COPYRIGHT 2025 ALL RIGHTS RESERVED 1
, What is an insurable event? - Correct Answer -the more predictable an event, the
more insurable it becomes
What's the diff between contract and tort law - Correct Answer -tort is non-contract
and private
Four major elements of a contract - Correct Answer -agreement, consideration,
competent parties, legal purpose
contract of adhesion - Correct Answer -prepared by insurer then accepted or
rejected
Conditional contract - Correct Answer -conditions need to be met in order for
contract to be executed
aleatory contract - Correct Answer -exchange of unequal amounts of value
unilateral contract - Correct Answer -only one party is forced to do something
personal contract - Correct Answer -can't be transferred w/out notifying insurer
When can you rescind a contract - Correct Answer -intentional or unintentional
concealment, violation of material warranty, false material representation
six specifications for insurance policies - Correct Answer -parties contracted
person insured
©COPYRIGHT 2025 ALL RIGHTS RESERVED 2
