State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 3/5
After issuing a policy, a licensed life agent helps the policyowner change a beneficiary, processes premium payments, and answers coverage questions. Under CIC Section 35, these post-issue activities are:
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Section 35 defines "transact" to include (a) solicitation, (b) negotiations preliminary to execution, (c) execution of the contract, and (d) transaction of matters subsequent to execution of the contract and arising out of it. Servicing — beneficiary changes, premium handling, and answering coverage questions — falls squarely within subsection (d), so it requires a license. An unlicensed person performing such services would be transacting without a license.
Why the other options are wrong
- A) Matters subsequent to execution are expressly included in Section 35, so servicing is transacting.
- B) Selling new coverage is transacting under subsections (a)-(c), but servicing existing policies is also transacting under (d).
- D) These activities are lawful for a licensed agent; they simply count as transacting insurance.
Memory hook
Transact = solicit, negotiate, execute, AND service. Post-sale work still counts.