CA LIFE INSURANCE EXAM 2025/2026
QUESTIONS AND ANSWERS 100% PASS
What is meant by referring to an insurance policy as a unilateral contract? - ANS Only one
party makes a legally enforceable promise.
When must insurance records of insurance agents and brokers be made available to the
Insurance Commissioner? - ANS At all times.
Any situation that presents the possibility of a loss is known as - ANS a loss exposure
Which of the following information is not required to be communicated in a Life insurance
contract? - ANS Personal judgment.
The direct distribution of insurance utilizes all of the following to promote the sale of insurance
EXCEPT - ANS telephone call from an agent.
A contract in which one party promises to indemnify another against loss that arises from an
unknown event is - ANS an insurance policy.
All of the occurrences listed below are examples of an insurable event as defined by the
California Insurance Code EXCEPT - ANS an insured suffers a financial loss in the state lottery
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,All of the following statements about aleatory contracts are true EXCEPT - ANS the insured
and insurer contribute equally to the contract.
All of the following would be considered unfair trade practices EXCEPT - ANS committing any
act of discrimination whether it be deemed fair or unfair.
As authorized by the California Insurance Code, the Insurance Commissioner has provided
standards for names used by life insurance agents. Under these standards which, if any, of the
following are automatically acceptable for Mary Brown, a holder of the CLU designation? -
ANS Mary Brown Insurance Services.
A contract of indemnity is one in which - ANS one party is restored to the same financial
position the party was in before the loss occurred.
In insurance terminology, "indemnity" means - ANS make whole.
As defined in the California insurance Code, "insurance" is a - ANS contract.
What would a person be guilty of who refuses to deliver any books, records, or assets to the
commissioner once a seizure order has been executed? - ANS A misdemeanor
An agent who is acting as an insurance agent, broker, solicitor, life agent, accident and health, or
bail agent acts in which capacity when handling premiums or return premiums for an insured? -
ANS Fiduciary
Which of the following statements regarding risk is TRUE? - ANS Only pure risks are insurable.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, The purchase of an insurance policy may accomplish all of the following for the insured EXCEPT -
ANS the elimination of risk.
Insureds are entitled to recover an amount NOT greater than the amount of their loss under the
principle of - ANS indemnity.
What rule is used to determine the importance of a representation? - ANS The materiality of
concealment.
The required contents of a policy include all of the following EXCEPT - ANS the probability of
loss
All of the following are characteristics of reinsurance EXCEPT it - ANS increases the unearned
premium reserve.
According to the California Insurance Code, an insurance policy must specify all of the following
EXCEPT the - ANS financial rating of the insurer.
All of the following qualify as "background information" as defined in Section 1729.2 of the
California Insurance Code, EXCEPT - ANS misdemeanor charges filed, not resulting in a
conviction.
Loss retention is an effective risk management technique when all of the following conditions
exist EXCEPT the - ANS probability of loss is unknown.
A situation in which there is a possibility of loss or a gain is a - ANS speculative risk.
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
QUESTIONS AND ANSWERS 100% PASS
What is meant by referring to an insurance policy as a unilateral contract? - ANS Only one
party makes a legally enforceable promise.
When must insurance records of insurance agents and brokers be made available to the
Insurance Commissioner? - ANS At all times.
Any situation that presents the possibility of a loss is known as - ANS a loss exposure
Which of the following information is not required to be communicated in a Life insurance
contract? - ANS Personal judgment.
The direct distribution of insurance utilizes all of the following to promote the sale of insurance
EXCEPT - ANS telephone call from an agent.
A contract in which one party promises to indemnify another against loss that arises from an
unknown event is - ANS an insurance policy.
All of the occurrences listed below are examples of an insurable event as defined by the
California Insurance Code EXCEPT - ANS an insured suffers a financial loss in the state lottery
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,All of the following statements about aleatory contracts are true EXCEPT - ANS the insured
and insurer contribute equally to the contract.
All of the following would be considered unfair trade practices EXCEPT - ANS committing any
act of discrimination whether it be deemed fair or unfair.
As authorized by the California Insurance Code, the Insurance Commissioner has provided
standards for names used by life insurance agents. Under these standards which, if any, of the
following are automatically acceptable for Mary Brown, a holder of the CLU designation? -
ANS Mary Brown Insurance Services.
A contract of indemnity is one in which - ANS one party is restored to the same financial
position the party was in before the loss occurred.
In insurance terminology, "indemnity" means - ANS make whole.
As defined in the California insurance Code, "insurance" is a - ANS contract.
What would a person be guilty of who refuses to deliver any books, records, or assets to the
commissioner once a seizure order has been executed? - ANS A misdemeanor
An agent who is acting as an insurance agent, broker, solicitor, life agent, accident and health, or
bail agent acts in which capacity when handling premiums or return premiums for an insured? -
ANS Fiduciary
Which of the following statements regarding risk is TRUE? - ANS Only pure risks are insurable.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, The purchase of an insurance policy may accomplish all of the following for the insured EXCEPT -
ANS the elimination of risk.
Insureds are entitled to recover an amount NOT greater than the amount of their loss under the
principle of - ANS indemnity.
What rule is used to determine the importance of a representation? - ANS The materiality of
concealment.
The required contents of a policy include all of the following EXCEPT - ANS the probability of
loss
All of the following are characteristics of reinsurance EXCEPT it - ANS increases the unearned
premium reserve.
According to the California Insurance Code, an insurance policy must specify all of the following
EXCEPT the - ANS financial rating of the insurer.
All of the following qualify as "background information" as defined in Section 1729.2 of the
California Insurance Code, EXCEPT - ANS misdemeanor charges filed, not resulting in a
conviction.
Loss retention is an effective risk management technique when all of the following conditions
exist EXCEPT the - ANS probability of loss is unknown.
A situation in which there is a possibility of loss or a gain is a - ANS speculative risk.
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
