California Life & Health Insurance Exam — All Questions
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California requires an extended free-look period for individual life insurance and annuity policies issued to applicants age 60 or older. That period is at least:
- a.10 days
- b.14 days
- c.30 days✓
- d.60 days
For applicants age 60 and older, California law gives a 30-day right to return an individual life or annuity policy for a refund. The standard free-look period for other individual life policies is at least 10 days.
The California Life and Health Insurance Guarantee Association differs from those in many states in that its coverage of an insolvent insurer's contractual obligations is limited to:
- a.100% of obligations with no cap
- b.80% of covered obligations, up to statutory maximums✓
- c.A flat 50% of all obligations
- d.Annuity contracts only
California's Guarantee Association generally covers 80% of an insolvent insurer's covered contractual obligations, subject to statutory dollar caps (for example, on death benefits). This 80% level is a distinctive California feature; many states cover a higher percentage.
California Insurance Code Section 790.03 is best described as:
- a.The schedule of licensing fees
- b.The list of unfair or deceptive insurance practices, such as misrepresentation and twisting✓
- c.The Medicare enrollment statute
- d.The state budget for the Department of Insurance
Section 790.03 is part of California's Unfair Practices Act. It enumerates unfair methods of competition and deceptive acts in insurance, including misrepresentation, false advertising, defamation of insurers, and twisting.