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California, Life, Health and Accident 2025
Latest Practice Exam with 700 Questions and
Correct Answers/ CA Life, Health &
Accident Practice Test
Which of the following is an insurer established by a parent
company for the purpose of insuring the parent company's loss
exposures?
- Participating insurer
- Captive insurer
- Mutual insurer
- Fraternal insurer - ..........ANSWER.......Captive insurer
John owns an insurance policy that gives him the right to share in
the insurer's surplus. What kind of policy is this?
- Surplus
- Nonparticipating
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- Participating
- Contributory - ..........ANSWER.......Participating
One important function of an insurance company is to identify and
sell to potential customers. Which of these BEST describes this
function?
- Reinsurance
- Underwriting
- Marketing
- Regulation - ..........ANSWER.......Marketing
When a mutual insurer becomes a stock company, the process is
called
- Reinsurance
- Mutualization
- Demutualization
- Reorganization - ..........ANSWER.......Demutualization
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What is a participating life insurance policy?
- Agreement that insurers two or more lives
- Agreement that allows two or more beneficiaries to share in the
death benefit
- Contract that gives beneficiaries the right to participate in any
dividends
- Contract that allows the policyowner to receive a share of surplus
in the form of policy dividends - ..........ANSWER.......Contract that
allows the policyowner to receive a share of surplus in the form of
policy dividends
The elimination period is a disability income policy serves the same
purpose as
- a deductible
- coinsurance
- an elective indemnity
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- waiver of premium - ..........ANSWER.......a deductible
Under a disability income insurance policy, which criteria must be
met for "bodily injury" to be classified as accidental?
- Only the result needed be of natural cause
- Only the cause need be accidental
- Both the injury and the cause need be accidental
- The cause may be intentional, but the result must be accidental -
..........ANSWER.......The cause may be intentional, but the result must
be accidental
What are residual disability income insurance payments based on?
- A flat benefit amount stated in the policy
- 50% of the full disability amount
- The amount of the insured's income is reduced by the disability
- The insured must be totally disabled - ..........ANSWER.......The
amount of the insured's income is reduced by the disability
California, Life, Health and Accident 2025
Latest Practice Exam with 700 Questions and
Correct Answers/ CA Life, Health &
Accident Practice Test
Which of the following is an insurer established by a parent
company for the purpose of insuring the parent company's loss
exposures?
- Participating insurer
- Captive insurer
- Mutual insurer
- Fraternal insurer - ..........ANSWER.......Captive insurer
John owns an insurance policy that gives him the right to share in
the insurer's surplus. What kind of policy is this?
- Surplus
- Nonparticipating
,2|Page
- Participating
- Contributory - ..........ANSWER.......Participating
One important function of an insurance company is to identify and
sell to potential customers. Which of these BEST describes this
function?
- Reinsurance
- Underwriting
- Marketing
- Regulation - ..........ANSWER.......Marketing
When a mutual insurer becomes a stock company, the process is
called
- Reinsurance
- Mutualization
- Demutualization
- Reorganization - ..........ANSWER.......Demutualization
,3|Page
What is a participating life insurance policy?
- Agreement that insurers two or more lives
- Agreement that allows two or more beneficiaries to share in the
death benefit
- Contract that gives beneficiaries the right to participate in any
dividends
- Contract that allows the policyowner to receive a share of surplus
in the form of policy dividends - ..........ANSWER.......Contract that
allows the policyowner to receive a share of surplus in the form of
policy dividends
The elimination period is a disability income policy serves the same
purpose as
- a deductible
- coinsurance
- an elective indemnity
, 4|Page
- waiver of premium - ..........ANSWER.......a deductible
Under a disability income insurance policy, which criteria must be
met for "bodily injury" to be classified as accidental?
- Only the result needed be of natural cause
- Only the cause need be accidental
- Both the injury and the cause need be accidental
- The cause may be intentional, but the result must be accidental -
..........ANSWER.......The cause may be intentional, but the result must
be accidental
What are residual disability income insurance payments based on?
- A flat benefit amount stated in the policy
- 50% of the full disability amount
- The amount of the insured's income is reduced by the disability
- The insured must be totally disabled - ..........ANSWER.......The
amount of the insured's income is reduced by the disability
