LIFE INSURANCE ONLY
CALIFORNIA Exam 2026 Questions and
Answers
LIFE INSURANCE - Correct Answer -Insurance that pays out a sum of money
either on the death of the insured person or after a set period.
TERM LIFE INSURANCE - Correct Answer -Life insurance that pays a benefit in
the event of the death of the insured during a specified term.
*PURE
*ONLY DEATH BENEFIT NO CASH VALUE
WHOLE LIFE INSURANCE - Correct Answer -Life insurance that pays a benefit
on the death of the insured and also accumulates a
*PERMANENT
*DEATH BENEFIT & CASH VALUE.
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,UNIVERSAL LIFE INSURANCE - Correct Answer -Flexible permanent life
insurance offering the low-cost protection of term life insurance as well as a
savings element (like whole life insurance), which is invested to provide a cash
value buildup.
LOW PREMIUM & CASH VALUE
VARIABLE LIFE INSURANCE - Correct Answer -Permanent life insurance
policy with an investment component.
LEVEL TERM LIFE INSURANCE - Correct Answer -Provides the same amount
of coverage for a specific length of time, over which you pay the same premium.
DECREASING TERM LIFE INSURANCE - Correct Answer -Annual renewable
term life insurance that provides a death benefit that decreases at a predetermined
rate over the life of the policy.
ANNUITY - Correct Answer -*Insurance product that pays out income, and can be
used as part of a retirement strategy.
*Fixed sum of money paid to someone each year, typically for the rest of their life.
DEFFERED ANNUITY - Correct Answer -Annuity that commences only after a
lapse of some specified time after the final purchase premium has been paid.
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, SINGLE PREMIUM DEFERED ANNUITY (S.P.D.A) - Correct Answer -Annuity
contract that is established with a single lump-sum payment by the owner.
*ANNUTIY GROWS ON A TAX DEFERRED BASIS UNTIL
ANNUITIZATION.
PRINCIPLE OF INDEMNIFICATION - Correct Answer -LIFE INSURANCE IS
DESIGNED TO MAKE SOMEONE WHOLE AGAIN (INDEMNIFY) NOT TO
ENRICH.
BENEFICIARY - Correct Answer -PERSON, ORGANIZATION, BUSINESS, OR
THE ESTATE OF THE INSURED TO RECEIVE TO BENEFITS.
-PRIMARY BENEFICIARY - 1ST
-CONTINGENT/SECONDARY BENEFICIARY - 2ND
-TERTIARY BENEFICIARY - 3RD
LIFE INSURANCE PURPOSE - Correct Answer -PROTECTION AGAINST
LOSS OF INCOME.
PRODUCER - Correct Answer -AGENT, BROKER, OR SOLICITOR
©COPYRIGHT 2025 ALL RIGHTS RESERVED 3
CALIFORNIA Exam 2026 Questions and
Answers
LIFE INSURANCE - Correct Answer -Insurance that pays out a sum of money
either on the death of the insured person or after a set period.
TERM LIFE INSURANCE - Correct Answer -Life insurance that pays a benefit in
the event of the death of the insured during a specified term.
*PURE
*ONLY DEATH BENEFIT NO CASH VALUE
WHOLE LIFE INSURANCE - Correct Answer -Life insurance that pays a benefit
on the death of the insured and also accumulates a
*PERMANENT
*DEATH BENEFIT & CASH VALUE.
©COPYRIGHT 2025 ALL RIGHTS RESERVED 1
,UNIVERSAL LIFE INSURANCE - Correct Answer -Flexible permanent life
insurance offering the low-cost protection of term life insurance as well as a
savings element (like whole life insurance), which is invested to provide a cash
value buildup.
LOW PREMIUM & CASH VALUE
VARIABLE LIFE INSURANCE - Correct Answer -Permanent life insurance
policy with an investment component.
LEVEL TERM LIFE INSURANCE - Correct Answer -Provides the same amount
of coverage for a specific length of time, over which you pay the same premium.
DECREASING TERM LIFE INSURANCE - Correct Answer -Annual renewable
term life insurance that provides a death benefit that decreases at a predetermined
rate over the life of the policy.
ANNUITY - Correct Answer -*Insurance product that pays out income, and can be
used as part of a retirement strategy.
*Fixed sum of money paid to someone each year, typically for the rest of their life.
DEFFERED ANNUITY - Correct Answer -Annuity that commences only after a
lapse of some specified time after the final purchase premium has been paid.
©COPYRIGHT 2025 ALL RIGHTS RESERVED 2
, SINGLE PREMIUM DEFERED ANNUITY (S.P.D.A) - Correct Answer -Annuity
contract that is established with a single lump-sum payment by the owner.
*ANNUTIY GROWS ON A TAX DEFERRED BASIS UNTIL
ANNUITIZATION.
PRINCIPLE OF INDEMNIFICATION - Correct Answer -LIFE INSURANCE IS
DESIGNED TO MAKE SOMEONE WHOLE AGAIN (INDEMNIFY) NOT TO
ENRICH.
BENEFICIARY - Correct Answer -PERSON, ORGANIZATION, BUSINESS, OR
THE ESTATE OF THE INSURED TO RECEIVE TO BENEFITS.
-PRIMARY BENEFICIARY - 1ST
-CONTINGENT/SECONDARY BENEFICIARY - 2ND
-TERTIARY BENEFICIARY - 3RD
LIFE INSURANCE PURPOSE - Correct Answer -PROTECTION AGAINST
LOSS OF INCOME.
PRODUCER - Correct Answer -AGENT, BROKER, OR SOLICITOR
©COPYRIGHT 2025 ALL RIGHTS RESERVED 3
