Life & Health Insurance Practice Test
Frequently asked questions
How many California Life & Accident-Health insurance practice questions?+
235 original practice questions covering all 10 topics of the California Department of Insurance Life & A&H Agent license exam.
Is the Life & A&H practice test free?+
Yes, completely free. No signup, no credit card. Unlimited practice rounds and a 150-question timed mock exam included.
Are these real CDI exam questions?+
No. All questions are original prose authored from the California Insurance Code, Title 10 CCR, Civil Code, and standard ISO insurance contract concepts. We never copy from real CDI exams or providers like ExamFX, Kaplan, or AD Banker.
What's the passing score for the California Life & A&H exam?+
60% with sectional cuts. The real CDI exam is approximately 150 multiple-choice questions over 3 hours at a PSI testing center.
Is the California insurance license exam offered in Chinese or Vietnamese?+
Yes — AB 451 (2018) legally requires CDI to offer producer license exams in English, Spanish, Vietnamese, Chinese (Mandarin), and Korean.
What does the Life & A&H license let me sell?+
Life insurance, annuities, accident insurance, health insurance, disability insurance, and long-term care (LTC) insurance — all to California residents.
How long is the California insurance license valid?+
2 years. Renewal requires 24 hours of continuing education (3 of which must be ethics) per renewal cycle.
Sample practice questions
A few real questions from this free bank, with full explanations. Use the practice tool above for the whole set.
- 1. Accident & Health Fundamentals
A consumer enrolls in a California Health Maintenance Organization (HMO). Which state agency has primary regulatory authority over that HMO?
- a.California Department of Insurance (CDI)
- b.California Department of Managed Health Care (DMHC)
- c.Centers for Medicare & Medicaid Services (CMS)
- d.California Department of Public Health (CDPH)
Answer: b
Explanation: Under the Knox-Keene Health Care Service Plan Act, California HMOs are regulated by the Department of Managed Health Care (DMHC), not the CDI. The CDI regulates indemnity health insurance and PPO products, but full-service HMOs fall under DMHC.
Source: Cal. Health & Safety Code §1340 et seq. (Knox-Keene Act)
- 2. A&H Policy Provisions
After receiving a notice of claim, within how many days must the insurer furnish claim forms to the claimant?
- a.15 days
- b.7 days
- c.10 days
- d.5 days
Answer: a
Explanation: The insurer must supply claim forms within 15 days after receiving notice of claim. If it fails to do so, the claimant may submit any written proof describing the occurrence, character, and extent of loss.
Source: Cal. Ins. Code §10350.6
- 3. California Insurance Code & Ethics
California's prompt payment statute for health insurance claims generally requires an insurer to pay or contest a clean claim within how many working days of receipt?
- a.90 working days
- b.45 working days
- c.60 working days
- d.30 working days
Answer: d
Explanation: §10123.13 requires payment or written contest of a clean claim within 30 working days of receipt; interest accrues on late payments. (HMOs under DMHC have a parallel 45-working-day rule.)
Source: Cal. Ins. Code §10123.13
- 4. Disability & Long-Term Care
An insured has advanced Alzheimer's disease and can still physically perform all six activities of daily living without assistance. Are they eligible for benefits under a tax-qualified long-term care policy?
- a.Yes, because severe cognitive impairment is an independent benefit trigger
- b.Yes, but only if a family member also signs as caregiver
- c.No, because they can still perform all six ADLs
- d.No, because cognitive impairment is not a benefit trigger
Answer: a
Explanation: Tax-qualified LTC policies use two independent benefit triggers: inability to perform at least 2 of 6 ADLs, or severe cognitive impairment requiring substantial supervision to protect the insured's health and safety. Advanced Alzheimer's disease qualifies under the cognitive-impairment trigger by itself.
Source: HIPAA tax-qualified LTC standard
- 5. Life Insurance Fundamentals
Which best describes the death benefit under Universal Life Option B (Type II)?
- a.Equal to cash value only, with no face amount
- b.Equal to the face amount PLUS the accumulated cash value
- c.Equal to twice the face amount at all times
- d.Equal to face amount only, regardless of cash value
Answer: b
Explanation: Option B (Type II) pays the face amount plus the accumulated cash value, so the death benefit grows over time. Because the net amount at risk does not decline, Option B is more expensive than Option A.
Source: Standard insurance principles
- 6. Life Policy Provisions
If an applicant misstates their age on a life insurance application and the error is discovered after death, what action does the misstatement-of-age provision require?
- a.The policy is voided and premiums refunded
- b.The full face amount is paid regardless of the misstatement
- c.The benefit is adjusted to the amount the paid premium would have purchased at the correct age
- d.The insurer denies the claim outright
Answer: c
Explanation: Under the misstatement-of-age (and sex) provision, the policy is not voided. Instead, the death benefit is adjusted to the amount that the actual premium paid would have purchased had the correct age (or sex) been used at issue.
Source: Cal. Ins. Code §10113
- 7. General Insurance Principles
Under California law, a fact is considered material if:
- a.Its disclosure would influence a prudent insurer in issuing the policy or setting the premium
- b.It involves only the applicant's medical history
- c.It appears in bold print in the application
- d.The applicant verbally acknowledges it during the interview
Answer: a
Explanation: Cal. Ins. Code §334 states that materiality is determined by the probable and reasonable influence of the facts upon the party to whom the communication is due, in forming his estimate of the disadvantages of the proposed contract, or in making his inquiries.
Source: Cal. Ins. Code §334
- 8. Tax Treatment
How is a lump-sum life insurance death benefit paid to a named individual beneficiary treated for federal income tax purposes?
- a.Subject to a 10% additional tax if the beneficiary is under 59½
- b.Taxed as ordinary income to the extent it exceeds premiums paid
- c.Taxed as long-term capital gain
- d.Generally excluded from the beneficiary's gross income
Answer: d
Explanation: IRC §101(a) excludes amounts paid by reason of the insured's death from the beneficiary's gross income. Interest credited after the date of death on installment payouts is the only piece that becomes taxable.
Source: IRC §101(a)
- 9. Disability & Long-Term Care
Under a California tax-qualified long-term care insurance policy, benefits are triggered when the insured cannot perform without substantial assistance how many of the six Activities of Daily Living (ADLs)?
- a.At least 2 of the 6 ADLs, OR has a severe cognitive impairment
- b.All 6 of the 6 ADLs
- c.At least 1 of the 6 ADLs
- d.At least 3 of the 6 ADLs
Answer: a
Explanation: Under HIPAA's federal definition adopted by California (Insurance Code §10232.92), a tax-qualified LTC policy is triggered when a licensed health care practitioner certifies that the insured is 'chronically ill' — meaning unable to perform without substantial assistance at least 2 of 6 ADLs (eating, bathing, dressing, toileting, transferring, continence) for at least 90 days, OR has a severe cognitive impairment requiring substantial supervision (e.g., Alzheimer's disease). Option A would be too easy a trigger. Option B (3 of 6) is incorrect — the federal standard is 2 of 6. Option D would make the benefit nearly impossible to reach. The cognitive-impairment alternative is critical: an Alzheimer's patient may be physically capable of all 6 ADLs but still need LTC.
Source: Cal. Ins. Code §10232.92 (LTC benefit triggers)
- 10. Life Insurance Fundamentals
A producer selling Variable Universal Life (VUL) insurance in California must hold:
- a.A California Property & Casualty license
- b.Only a FINRA Series 6 or 7 registration; no state insurance license is required
- c.Only a California Life-Only license
- d.A California Life-Only license AND a Variable Contracts authority (typically requiring FINRA Series 6 or 7 plus Series 63), because VUL's separate-account investments are securities
Answer: d
Explanation: Variable Universal Life (VUL) combines a flexible-premium universal life chassis with policyowner-directed investment in 'separate accounts' (sub-accounts that resemble mutual funds). Because the separate accounts are SECURITIES under federal law (Investment Company Act of 1940) and California Corporations Code, the producer must hold both an insurance license (California Life-Only or Life & Disability) authorizing variable contracts and a FINRA registration (Series 6 or 7) plus typically Series 63. California Insurance Code §10506 governs variable contract authority. Option A is insufficient by itself; the variable portion requires securities licensing. Option B is incomplete; both insurance and securities credentials are required. Option D is unrelated (P&C licenses do not authorize life or variable products). The dual-license requirement is a frequent test point.
Source: Investment Company Act of 1940; California Insurance Code §10506 (variable contracts)