Which of the following CORRECTLY distinguishes California life insurance license types?

a.A 'life agent' represents the consumer; a 'life broker' represents the insurer
b.A 'Life-Only Agent' may also legally sell property and casualty without additional licensing
c.An 'Insurance Agent' or 'Life-Only Agent' represents one or more insurers as their authorized appointee under California Insurance Code §1621-§1626; a 'Life and Disability Insurance Analyst' (LIA) under §1831 et seq. provides FEE-based advice to consumers and CANNOT receive commissions; a 'Life-Licensed Accident & Health Agent' has authority to sell A&H products; a 'Limited Lines License' (e.g., LBA — Life-Limited to the Business of Funeral and Cemetery Pre-Need) is restricted to a narrow product line
d.All California insurance producers may sell any line of insurance once they pass a single uniform exam

Explanation

California Insurance Code §1626 sets out the principal classes of insurance producer authority. A standard LIFE AGENT (Life-Only or Life-Accident-Health) is appointed by and represents one or more insurers as their agent. A LIFE AND DISABILITY INSURANCE ANALYST (LIA) under §1831-§1849 is a separate, FEE-FOR-ADVICE professional who is prohibited from receiving commissions on insurance products. A LIFE-LIMITED to the BUSINESS OF FUNERAL AND CEMETERY PRE-NEED (LBA) license under §1758.7 authorizes only that narrow market. BROKERS are more common in P&C; in California life lines, the agent-broker distinction is statutory but most life producers operate as appointed agents. Options A and B misstate definitions and scopes. Option D wrongly assumes a single universal license; California carefully separates lines and adds endorsements (variable, LTC, annuity, partnership LTC, ethics, etc.).

Law Reference: California Insurance Code §1626 (license types) and §1758.7 (LBA)

Practice all 315 questions free — no signup required.

Related questions on this topic

Last reviewed: · editorial process

PrepPass Editorial Team · Verified against California Life & Health Insurance License Exam · How we review
Report