CALIFORNIA LIFE, ACCIDENT & HEALTH
INSURANCE – PRACTICE QUESTIONS AND
CORRECT ANSWERS (VERIFIED ANSWERS) PLUS
RATIONALES 2026 Q&A | INSTANT DOWNLOAD
PDF.
*CORE DOMAINS
*General Insurance Conce
*Life Insurance Pol
*Health and Disability In
*California Insuran
*Group Insurance and Em
*Taxation and Reti
*Senior Citizen Prot
*Accident and Health
*INTRODUCTION
*This comprehensive assessment is designed to
,SECTION ONE: QUESTIONS 1–100
1. Which of the following best describes the
principle of "Adhesion" in an insurance
contract?
A. Both parties contribute equally to the wording.
B. The contract is prepared by one party and
accepted or rejected by the other.
C. The values exchanged are not necessarily equal.
D. The contract is based on the trust between the
insurer and insured.
🟢 B. The contract is prepared by one party and
accepted or rejected by the other.
🔴 RATIONALE: In a contract of adhesion, the
insurer drafts the document and the applicant must
"adhere" to it as written, meaning any ambiguity is
usually resolved in favor of the insured.
, 2. Under the California Insurance Code, an
agent’s license is considered inactive if:
A. The agent has not sold a policy in 6 months.
B. The agent fails to complete continuing education.
C. All appointment notices on file have been
terminated.
D. The agent moves to a different county.
🟢 C. All appointment notices on file have been
terminated.
🔴 RATIONALE: A license is considered inactive
when there are no active appointments on file with
the Commissioner, though the license itself may still
be valid for renewal.
3. An insured has a $100,000 whole life policy
with a $20,000 policy loan outstanding. If the
insured dies, how much will the beneficiary
receive?
, A. $120,000
B. $100,000
C. $80,000
D. $70,000
🟢 C. $80,000
🔴 RATIONALE: Policy loans, including any accrued
interest, are deducted from the death benefit
proceeds upon the death of the insured.
4. Which health insurance provision prevents an
insurer from changing the premium or
coverage as long as premiums are paid on
time?
A. Optionally Renewable
B. Guaranteed Renewable
C. Non-Cancellable
D. Conditionally Renewable
🟢 C. Non-Cancellable
INSURANCE – PRACTICE QUESTIONS AND
CORRECT ANSWERS (VERIFIED ANSWERS) PLUS
RATIONALES 2026 Q&A | INSTANT DOWNLOAD
PDF.
*CORE DOMAINS
*General Insurance Conce
*Life Insurance Pol
*Health and Disability In
*California Insuran
*Group Insurance and Em
*Taxation and Reti
*Senior Citizen Prot
*Accident and Health
*INTRODUCTION
*This comprehensive assessment is designed to
,SECTION ONE: QUESTIONS 1–100
1. Which of the following best describes the
principle of "Adhesion" in an insurance
contract?
A. Both parties contribute equally to the wording.
B. The contract is prepared by one party and
accepted or rejected by the other.
C. The values exchanged are not necessarily equal.
D. The contract is based on the trust between the
insurer and insured.
🟢 B. The contract is prepared by one party and
accepted or rejected by the other.
🔴 RATIONALE: In a contract of adhesion, the
insurer drafts the document and the applicant must
"adhere" to it as written, meaning any ambiguity is
usually resolved in favor of the insured.
, 2. Under the California Insurance Code, an
agent’s license is considered inactive if:
A. The agent has not sold a policy in 6 months.
B. The agent fails to complete continuing education.
C. All appointment notices on file have been
terminated.
D. The agent moves to a different county.
🟢 C. All appointment notices on file have been
terminated.
🔴 RATIONALE: A license is considered inactive
when there are no active appointments on file with
the Commissioner, though the license itself may still
be valid for renewal.
3. An insured has a $100,000 whole life policy
with a $20,000 policy loan outstanding. If the
insured dies, how much will the beneficiary
receive?
, A. $120,000
B. $100,000
C. $80,000
D. $70,000
🟢 C. $80,000
🔴 RATIONALE: Policy loans, including any accrued
interest, are deducted from the death benefit
proceeds upon the death of the insured.
4. Which health insurance provision prevents an
insurer from changing the premium or
coverage as long as premiums are paid on
time?
A. Optionally Renewable
B. Guaranteed Renewable
C. Non-Cancellable
D. Conditionally Renewable
🟢 C. Non-Cancellable
