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CALIFORNIA LIFE AND HEALTH
FINAL ACTUAL 2026 EXAM | ALL
QUESTIONS AND VERIFIED ANSWERS
| RATED A+ | NEW AND REVISED
What is considered to be the definition of disability, according to Social
Security? - ANSWER- Unable to engage in any substantial gainful
activity
"Life insurance creates an immediate estate". This phrase means: -
ANSWER- when the insured dies, a death benefit is paid
How are death benefits that are received by a beneficiary normally
treated for tax purposes? - ANSWER- Exempt from federal income
taxes
Exempt from federal income taxes - ANSWER- Payment for services
goes directly to the provider
When an insurance company requests an attending physician's report,
the request must be accompanied by a - ANSWER- copy of the signed
authorization
Which policy provision protects the policyowner from unintentional
lapse of the contract? - ANSWER- Grace period
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What kind of annuity pays income to two annuitants until their deaths? -
ANSWER- Joint and survivor annuity
What type of changes can be made to a guaranteed renewable health
insurance policy? - ANSWER- The premium rates of the policyowner
Which of the following is NOT considered to be insurer expenses? -
ANSWER- Policy premiums
In what situation does a waiver of premium provision keep a health
insurance policy in force without premium payments? - ANSWER-
When an insured becomes totally disabled
What is an "insurance broker" according to California Insurance Code? -
ANSWER- A person authorized to assist a broker or agent in transacting
insurance.
A participating company is also referred to as which type of insurer? -
ANSWER- Mutual insurer
Which of the following is NOT considered to be an act of insurance
solicitation? - ANSWER- Publishing a magazine where one of the
advertisers is an insurer
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Restoring an insured to the same condition as before a loss is an example
of the principle of - ANSWER- Indemnity
All of these are reasons the Commissioner may disapprove a licensee's
request to use a fictitious name EXCEPT - ANSWER- The name is the
licensee's actual name
A life insurance policy that pays the face amount if the insured survives
to a specified period of time is called - ANSWER- endowment insurance
Which of the following is a contract that involves one party which
indemnifies another when a loss arises from an unknown event? -
ANSWER- Insurance policy
Which of the following is a situation where there is a possibility of either
a loss or a gain? - ANSWER- Speculative risk
An agent's attempt to stop the replacement of an existing life insurance
policy is known as - ANSWER- conservation
Who would be most likely to submit a Medicare Part A claim? -
ANSWER- Hospital
In California, an insurer organized under the state laws of Oregon is
called a(n) - ANSWER- foreign insurer
CALIFORNIA LIFE AND HEALTH
FINAL ACTUAL 2026 EXAM | ALL
QUESTIONS AND VERIFIED ANSWERS
| RATED A+ | NEW AND REVISED
What is considered to be the definition of disability, according to Social
Security? - ANSWER- Unable to engage in any substantial gainful
activity
"Life insurance creates an immediate estate". This phrase means: -
ANSWER- when the insured dies, a death benefit is paid
How are death benefits that are received by a beneficiary normally
treated for tax purposes? - ANSWER- Exempt from federal income
taxes
Exempt from federal income taxes - ANSWER- Payment for services
goes directly to the provider
When an insurance company requests an attending physician's report,
the request must be accompanied by a - ANSWER- copy of the signed
authorization
Which policy provision protects the policyowner from unintentional
lapse of the contract? - ANSWER- Grace period
,2|Page
What kind of annuity pays income to two annuitants until their deaths? -
ANSWER- Joint and survivor annuity
What type of changes can be made to a guaranteed renewable health
insurance policy? - ANSWER- The premium rates of the policyowner
Which of the following is NOT considered to be insurer expenses? -
ANSWER- Policy premiums
In what situation does a waiver of premium provision keep a health
insurance policy in force without premium payments? - ANSWER-
When an insured becomes totally disabled
What is an "insurance broker" according to California Insurance Code? -
ANSWER- A person authorized to assist a broker or agent in transacting
insurance.
A participating company is also referred to as which type of insurer? -
ANSWER- Mutual insurer
Which of the following is NOT considered to be an act of insurance
solicitation? - ANSWER- Publishing a magazine where one of the
advertisers is an insurer
, 3|Page
Restoring an insured to the same condition as before a loss is an example
of the principle of - ANSWER- Indemnity
All of these are reasons the Commissioner may disapprove a licensee's
request to use a fictitious name EXCEPT - ANSWER- The name is the
licensee's actual name
A life insurance policy that pays the face amount if the insured survives
to a specified period of time is called - ANSWER- endowment insurance
Which of the following is a contract that involves one party which
indemnifies another when a loss arises from an unknown event? -
ANSWER- Insurance policy
Which of the following is a situation where there is a possibility of either
a loss or a gain? - ANSWER- Speculative risk
An agent's attempt to stop the replacement of an existing life insurance
policy is known as - ANSWER- conservation
Who would be most likely to submit a Medicare Part A claim? -
ANSWER- Hospital
In California, an insurer organized under the state laws of Oregon is
called a(n) - ANSWER- foreign insurer
