California Life, Accident, and Health Insurance Final Exam 2026 Questions and Answers Verified Answers

California Life, Accident, and Health Insurance Final Exam 2026

Questions and Answers Verified Answers

California Life, Accident, and Health Insurance Final Exam 2026

Questions and Answers Verified Answers

What is an insurance solicitor authorized to do?

Help an agent or broker sell insurance

According to the California Insurance Code, what is "insurance"?

A contract

What does a Hospital Confinement indemnity policy pay for?

Pay a specified daily amount while the insured is confined to a hospital

According to the California Insurance Code, how is the word "may"

interpreted?

Permissive

Which statement is CORRECT when describing a contract of adhesion?

Contract may be accepted or rejected by the insured.

Retirement plans are prevented from favoring highly compensated

employees under which government regulation

Nondiscrimination

When calculating life insurance premium rates, which component

would an agent's commission fall under?

Insurer's expenses

All of the following circumstances must be met for loss retention to be

an effective risk management technique, EXCEPT

Probability of loss is unknown

An insurance policy written after 1988 that fails to pass the seven-pay

test is known as

a modified endowment contract

All of these are reasons the Commissioner may disapprove a licensee's

request to use a fictitious name EXCEPT

The name is the licensee's actual name

Which of the following services are health maintenance organizations

(HMO's) NOT required to provide?

Prescription drugs