Last Updated: Sep 07, 2026
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| Section | Weight | Objectives |
|---|---|---|
| Life Insurance | 35% | - Group life insurance - Types of life insurance policies - Beneficiary designations and settlement options - Policy provisions, riders, and options |
| Annuities and Retirement Plans | 10% | - Fixed and variable annuities - Immediate and deferred annuities - Tax treatment and suitability |
| General Insurance Concepts | 10% | - Insurance contract law and elements - Basic insurance principles and terminology - Insurance marketplace and regulation overview |
| California Insurance Code & Ethics | 20% | - State regulations and licensing rules - Policy delivery and replacement rules - Ethical standards and anti-fraud provisions - Unfair trade practices |
| Health Insurance | 25% | - Medical expense and major medical plans - Health policy provisions and exclusions - Medicare and Medicare supplements - Long-term care insurance - Disability income insurance |
Question 1
Insurer policy expenses include all of the following EXCEPT
A. agent commissions.
B. premiums.
C. home office operations.
D. taxes.
Question 2
The spendthrift clause in a life insurance policy
A. allows the payment of part of the death benefit for terminally ill insureds.
B. prevents a beneficiary from assigning interest in policy proceeds.
C. requires the insurer to waive all premiums due when an insured is totally disabled.
D. assumes that the insured survived the beneficiary if both die in a common accident.
Question 3
Which of the following is NOT a characteristic of a contributory group insurance plan?
A. The employer pays a portion of the cost.
B. The policy owner pays all of the cost.
C. The member pays a portion of the cost.
D. The member pays all of the cost.
Question 4
Which type of life insurance coverage has both a savings element and a flexible premium option?
A. Term life.
B. There is currently no insurance product available in the standard market which has both of these features.
C. Universal life.
D. Whole life.
Question 5
Life insurance policy illustrations must include all of the following EXCEPT
A. a statement that all benefits and values are guaranteed.
B. the page number of each page.
C. the name of the insured.
D. the relationship of each page to the total number of pages.
Solutions:
| Question 1 Answer: B | Question 2 Answer: B | Question 3 Answer: D | Question 4 Answer: C | Question 5 Answer: A |
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