Under California Insurance Code Section 1626(a)(1), a life agent's license authorizes the licensee to transact insurance on:

Why A is correct

Section 1626(a)(1) provides that a life license entitles the licensee to transact insurance coverage on human lives, including benefits of endowment and annuities, and may also include benefits in the event of accidental death or dismemberment and benefits for disability income. The life license is broad: it covers life insurance in all its forms, endowments, and annuity contracts, and it may extend to specified accident and disability benefits when the policy provides them. It does not authorize property and casualty lines, which require separate licenses, nor does it limit the licensee to term products. Understanding the scope of the life license is essential, because transacting outside its authority could be unlicensed activity.

Why the other options are wrong

• B) The life license is not limited to term products; it covers all forms of life insurance, endowments, and annuities, including permanent and flexible products. The breadth of the license reflects the variety of life products, including whole life, universal life, endowments, and annuities.
• C) Property and casualty insurance requires separate licensing; the life license is defined by coverage on human lives, so it does not extend to property or casualty risks. An agent who sells auto, home, or commercial coverage without the proper license would be transacting outside the authority of the life license.
• D) Medicare supplement sales require appropriate accident and health licensing; the life license is defined around life, endowment, and annuity coverage rather than health products. Health products generally require accident and health licensing, so a life-only licensee must not sell Medicare supplement or similar health coverage.

Memory hook

Life license = lives, endowments, annuities. Cars and houses need a different ticket.