Medicare & Senior InsuranceQuestion 219 of 716
An agent invites seniors to a free lunch advertised as an educational seminar but plans to deliver a sales pitch for indexed annuities. Under California law this is:
a.Prohibited unless sales activity is disclosed in advance
b.Permitted because lunch is free
c.Permitted because the seminar is educational
d.Permitted as long as no contracts are signed at the event
Explanation
Insurance Code §787 prohibits high-pressure or misleading tactics aimed at seniors. Free-lunch seminars that hide a sales presentation behind educational labeling are not allowed; sales activity must be disclosed in the invitation and on-site.
Law Reference: Cal. Ins. Code §787This topic, taught in full in the California Life & Health Insurance Producer Exam guide. California Life & Health Insurance Producer Exam — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
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PrepPass team · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)