California Insurance Code and Policy Regulations
Exam 2025–2026 Accurate Real Exam Questions and
Verified Correct Answers JUST RELEASED
Death benefit payment - answer>>>The insurer will pay the death benefit even if the insured had
misstated information on the application.
Policy nonrenewal - answer>>>Discontinuance of an insurance policy by the insured on the policy
anniversary date.
Group life insurance taxation - answer>>>An employee will be taxed on the cost if the amount of
coverage exceeds $50,000.
20-pay whole life policy endow - answer>>>Ends when the insured reaches age 100.
Indemnity principle - answer>>>States that if a policy allows for greater compensation than the
financial loss incurred, the insured may only receive benefits for the amount lost.
Settlement option - answer>>>If an immediate annuity is purchased with the face amount at
death or with the cash value at surrender.
Term to specified age policy - answer>>>A policy that pays the death benefit if the insured dies
during the 20-year premium-paying period, and nothing if death occurs after the 20-year period.
Modified Endowment Contracts taxation - answer>>>Policy loans are taxable distributions.
Policy proceeds distribution - answer>>>Will go to the insured's estate if the beneficiary dies
before the insured.
Record keeping requirement - answer>>>Insurance agents are required to keep detailed bank and
financial records about the transaction for a minimum of 5 years after cancellation or expiration
of a policy.
, Third-party policy owner - answer>>>An individual or entity who is not the insured.
Annuity owner characteristics - answer>>>Must be the party to receive benefits.
Contract characteristic - answer>>>Insurance policies are not drawn up through negotiation, and
an insured has little to say about its provisions.
Contract of adhesion - answer>>>A contract where one party has significantly more power than
the other in drafting the agreement.
Premium receipt - answer>>>A document issued to an applicant when an agent collects the initial
premium with the application.
Legal hazard - answer>>>A set of legal or regulatory conditions that affect an insurer's ability to
collect premiums commensurate with the level of risk incurred.
Rebating - answer>>>The practice of returning a portion of the premium to the policyholder,
which is generally prohibited.
Credit life insurance - answer>>>Insurance that pays off a borrower's debt in the event of their
death.
Investigative consumer report notification - answer>>>An insurer must notify the consumer in
writing within 3 days of requesting an investigative consumer report.
Hazards - answer>>>Events or conditions that increase the chances of an insured loss occurring.
Installments for a fixed amount - answer>>>Payments made in fixed amounts that do not stop
when the annuitant dies.
Exam 2025–2026 Accurate Real Exam Questions and
Verified Correct Answers JUST RELEASED
Death benefit payment - answer>>>The insurer will pay the death benefit even if the insured had
misstated information on the application.
Policy nonrenewal - answer>>>Discontinuance of an insurance policy by the insured on the policy
anniversary date.
Group life insurance taxation - answer>>>An employee will be taxed on the cost if the amount of
coverage exceeds $50,000.
20-pay whole life policy endow - answer>>>Ends when the insured reaches age 100.
Indemnity principle - answer>>>States that if a policy allows for greater compensation than the
financial loss incurred, the insured may only receive benefits for the amount lost.
Settlement option - answer>>>If an immediate annuity is purchased with the face amount at
death or with the cash value at surrender.
Term to specified age policy - answer>>>A policy that pays the death benefit if the insured dies
during the 20-year premium-paying period, and nothing if death occurs after the 20-year period.
Modified Endowment Contracts taxation - answer>>>Policy loans are taxable distributions.
Policy proceeds distribution - answer>>>Will go to the insured's estate if the beneficiary dies
before the insured.
Record keeping requirement - answer>>>Insurance agents are required to keep detailed bank and
financial records about the transaction for a minimum of 5 years after cancellation or expiration
of a policy.
, Third-party policy owner - answer>>>An individual or entity who is not the insured.
Annuity owner characteristics - answer>>>Must be the party to receive benefits.
Contract characteristic - answer>>>Insurance policies are not drawn up through negotiation, and
an insured has little to say about its provisions.
Contract of adhesion - answer>>>A contract where one party has significantly more power than
the other in drafting the agreement.
Premium receipt - answer>>>A document issued to an applicant when an agent collects the initial
premium with the application.
Legal hazard - answer>>>A set of legal or regulatory conditions that affect an insurer's ability to
collect premiums commensurate with the level of risk incurred.
Rebating - answer>>>The practice of returning a portion of the premium to the policyholder,
which is generally prohibited.
Credit life insurance - answer>>>Insurance that pays off a borrower's debt in the event of their
death.
Investigative consumer report notification - answer>>>An insurer must notify the consumer in
writing within 3 days of requesting an investigative consumer report.
Hazards - answer>>>Events or conditions that increase the chances of an insured loss occurring.
Installments for a fixed amount - answer>>>Payments made in fixed amounts that do not stop
when the annuitant dies.
