Under California Insurance Code Section 1626(a)(1), a life agent's license entitles the licensee to transact:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Section 1626(a)(1) provides that a life license entitles the licensee to transact insurance on human lives, including benefits of endowments and annuities, and may include accidental death and dismemberment benefits and disability income benefits. This is the statutory scope of a life agent's authority. Property and casualty lines, unrestricted authority over every line, and limitation to a single product form are all outside the life license. To sell lines beyond this statutory scope, the agent must obtain the additional appropriate licenses.
Why the other options are wrong
- B) Property and casualty lines require separate property/casualty licensing; the life license under Section 1626(a)(1) covers life, endowment, and annuity coverage on human lives.
- C) A life license is limited by statute to the classes described in Section 1626; the commissioner does not grant unrestricted authority to transact every line.
- D) The life license is not limited to term insurance or to payroll-deduction plans; it authorizes the full range of life and annuity coverage on human lives.
Memory hook
Life license = human lives, endowments, annuities, plus some accident and disability riders. Not cars, not homes, not everything.