Pass your actual test with our California Department of Insurance CA-Life-Accident-and-Health training material at first attempt
Updated: Jun 10, 2026
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1. An insured replaces an existing annuity with a new one and must pay a surrender charge for cancelling the existing annuity. The new policy holds no greater financial benefits to the insured than the existing contract.
This is an example of
A) a substandard annuity.
B) an unnecessary replacement.
C) a deferred annuity.
D) nonforferture.
2. Under PPACA, what is a health benefits exchange?
A) PPACA creates new entities called American Health Benefits Exchanges through which individuals, small businesses, and those who do not have access to affordable employer coverage, can purchase coverage.
B) PPACA creates new entities called American Health Benefits Exchanges through which low-income individuals can access public health care programs.
C) A health benefits exchange is created by health insurers to allow individuals to access benefits in other insurers' plans.
D) A health benefits exchange is created by employers to relieve them of having to provide health benefits to employees.
3. According to the California Insurance Code, all of the following Long-Term Care (LTC) insurance sales are considered unnecessary EXCEPT
A) a replacement LTC policy with fewer benefits and a higher premium.
B) a replacement LTC policy with equal benefits for a lower premium.
C) two additional LTC policies that equal the combined benefits on an existing one.
D) an additional LTC policy to an insured who already has two LTC policies.
4. Which plan covers the medical expenses that are NOT covered by Medicare?
A) MediCal.
B) Long-term care.
C) Disability income.
D) Medicare supplement.
5. Which nonforferture option uses cash surrender values to select paid-up term insurance for the full face amount of the policy?
A) Reduced term insurance.
B) Reduced paid-up insurance.
C) Extended term insurance.
D) Extended paid-up insurance.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: B | Question # 3 Answer: B | Question # 4 Answer: D | Question # 5 Answer: C |
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