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California Insurance Regulations Practice Questions

820 free California-specific insurance regulation questions — licensing rules, replacement regulations, unfair practices, and CA insurance code duties tested on the California Life & Health exam. Nationally applicable material lives in the other domains.

  1. 1.Which of the following best describes insurable interest in life insurance?
    Difficulty 1/5CA specific
  2. 2.A business partner takes out a life insurance policy on the other partner when they form a partnership. The…
    Difficulty 2/5CA specific
  3. 3.How does the timing of the insurable interest requirement for life insurance under California Insurance Cod…
    Difficulty 1/5CA specific
  4. 4.A California policyowner purchases a policy on her own life and names a person who has no relationship to h…
    Difficulty 2/5CA specific
  5. 5.Under California Insurance Code Section 10110, when must the policyowner have an insurable interest in the …
    Difficulty 1/5CA specific
  6. 6.A California business wants to insure the life of its star salesperson, and the salesperson's spouse also w…
    Difficulty 2/5CA specific
  7. 7.A policyowner names a beneficiary irrevocably. Under California Insurance Code Section 10170, the policyown…
    Difficulty 2/5CA specific
  8. 8.A California insured is divorced but never changes the beneficiary designation on his life policy, which st…
    Difficulty 2/5CA specific
  9. 9.A married insured pays premiums on a life policy with community funds and names a beneficiary other than th…
    Difficulty 3/5CA specific
  10. 10.Which of the following is NOT one of the standard life insurance settlement options?
    Difficulty 1/5CA specific
  11. 11.Under California Insurance Code Section 10170(f), an insurer may use a retained-asset account as the defaul…
    Difficulty 2/5CA specific
  12. 12.When an employee's group life insurance coverage ends, California law (CIC Section 10209) gives the employe…
    Difficulty 2/5CA specific
  13. 13.Under California's group life conversion privilege (CIC Section 10209), the converted individual policy mus…
    Difficulty 2/5CA specific
  14. 14.A terminated employee applies for conversion on day 20 of the 31-day conversion period but dies before the …
    Difficulty 2/5CA specific
  15. 15.An employer fails to give a terminating employee the required 15-day advance written notice of the right to…
    Difficulty 3/5CA specific
  16. 16.A California resident receives periodic payments from a nonqualified annuity. For California personal incom…
    Difficulty 2/5CA specific
  17. 17.A California resident who is terminally ill receives an accelerated death benefit under a living benefit ri…
    Difficulty 1/5CA specific
  18. 18.For California personal income tax purposes, the interest credited to the cash value of a permanent life in…
    Difficulty 1/5CA specific
  19. 19.With respect to estate taxation of life insurance proceeds, which statement is correct for a California res…
    Difficulty 2/5CA specific
  20. 20.For California personal income tax purposes, an employee with $45,000 of employer-paid group term life insu…
    Difficulty 1/5CA specific
  21. 21.A California resident owns a life insurance policy that is classified as a Modified Endowment Contract (MEC…
    Difficulty 2/5CA specific
  22. 22.For California state personal income tax purposes, a life insurance death benefit received as a lump sum by…
    Difficulty 1/5CA specific
  23. 23.A California resident beneficiary elects to receive a life insurance death benefit in equal annual installm…
    Difficulty 2/5CA specific
  24. 24.A California resident borrows against the cash value of a non-MEC life insurance policy. Under California p…
    Difficulty 1/5CA specific
  25. 25.A company offers customers a contract promising to pay for appliance repairs if the appliances break during…
    Difficulty 2/5CA specific
  26. 26.An event has already occurred, but neither party to an insurance transaction knows about it. Under Californ…
    Difficulty 2/5CA specific
  27. 27.Under California Insurance Code Section 381, which of the following is NOT one of the specifications a life…
    Difficulty 2/5CA specific
  28. 28.Under California Insurance Code Section 22, a contract qualifies as insurance when one party agrees to inde…
    Difficulty 1/5CA specific
  29. 29.Under California Insurance Code Section 22, for a contract to qualify as insurance, the event that triggers…
    Difficulty 2/5CA specific
  30. 30.In the California statutory definition of insurance (Insurance Code Section 22), the term 'indemnify' means…
    Difficulty 1/5CA specific
  31. 31.Under California Insurance Code Section 22, the event that triggers the insurer's obligation under an insur…
    Difficulty 1/5CA specific
  32. 32.A company charges members a flat monthly fee and promises to pay a fixed benefit whenever a member submits …
    Difficulty 2/5CA specific
  33. 33.Under California Insurance Code Section 22, a policy that pays a death benefit is valid insurance even thou…
    Difficulty 1/5CA specific
  34. 34.Under California law, which of the following is generally recognized as an eligible group for group health …
    Difficulty 2/5CA specific
  35. 35.A blanket health insurance policy under California Insurance Code Section 10270.2 is a policy that:
    Difficulty 1/5CA specific
  36. 36.Under California Insurance Code Section 22, insurance is defined as a contract whereby one party agrees to:
    Difficulty 1/5CA specific
  37. 37.Under CIC Section 10382, if an alteration to a disability insurance application is made by an officer of th…
    Difficulty 3/5CA specific
  38. 38.Under CIC Section 10382, altering a written disability insurance application without the applicant's writte…
    Difficulty 2/5CA specific
  39. 39.When a group disability policy is discontinued and a different carrier begins providing the benefits to the…
    Difficulty 2/5CA specific
  40. 40.Under CIC Section 10128.1, discontinuance of a group disability policy means:
    Difficulty 2/5CA specific
  41. 41.Under California law (CIC Sections 10128.1-10128.4), when a group disability policy is discontinued and an …
    Difficulty 2/5CA specific
  42. 42.Under CIC Section 10350.2, after a disability policy has been in force for two years, the insurer generally…
    Difficulty 2/5CA specific
  43. 43.Under CIC Section 10113, statements made by an applicant in a disability insurance application are, in the …
    Difficulty 2/5CA specific
  44. 44.Under CIC Section 10113, a disability insurance policy issued in California constitutes the entire contract…
    Difficulty 2/5CA specific
  45. 45.Under California law (CIC Sections 10146-10149), when a disability income insurer underwrites on the basis …
    Difficulty 2/5CA specific
  46. 46.A California disability income insurer is underwriting an applicant who is HIV-positive. Under CIC Section …
    Difficulty 2/5CA specific
  47. 47.Under California's Equal Insurance HIV Act (CIC Section 799), before a life or disability income insurer ma…
    Difficulty 2/5CA specific
  48. 48.In California, a Medi-Cal beneficiary with income above the standard eligibility threshold may still qualif…
    Difficulty 3/5CA specific
  49. 49.Under California Insurance Code Section 10192.20, an agent who replaces an existing Medigap policy must:
    Difficulty 3/5CA specific
  50. 50.During the Medigap open enrollment period under California law, insurers:
    Difficulty 2/5CA specific