Life and Health California Exam Cheat Sheet 2026

The 30 highest-yield Life and Health California Exam facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. A California insurance agent who receives premiums from a client on behalf of an insurer must: → Promptly forward the premiums to the insurer and maintain separate trust accounting
2. Medicare Part D provides coverage for which of the following? → Outpatient prescription drug coverage
3. Medicare Part A primarily covers which type of care? → Inpatient hospital care
4. Under California's 'timely access to care' standards for HMOs, urgent care appointments must be available within: → 48 hours
5. Florida's Long-Term Care Partnership Program must provide which of the following coverage? → Inflation coverage
6. For how many days does the coverage apply at another location for property removed to protect it from a flood under the National Flood Insurance Program? → 45 days
7. California requires LTC insurers to provide an 'outline of coverage' to applicants: → At the time of application, before the policy is issued
8. Medigap policies sold to newly eligible Medicare beneficiaries after January 1, 2020 may no longer cover which benefit? → The Medicare Part B annual deductible
9. All of the following statements about mutual insurance companies are correct, except: → Policy dividends issued by mutual companies are guaranteed and not taxable.
10. Which of the following best describes a 'dual eligible' individual? → Someone who qualifies for and is enrolled in both Medicare and Medicaid
11. When a life insurance policy has a 'reduced paid-up' nonforfeiture option, what happens? → The face amount is reduced and no further premiums are required
12. Under the California Insurance Code, individual health insurance policies must provide coverage for which of the following mental health services? → Mental health and substance use disorder services at parity with medical/surgical benefits
13. A 'waiver of premium' rider on a life insurance policy provides that: → Premiums are waived if the insured becomes totally disabled for a specified period
14. Which of the following is NOT typically excluded from a standard individual health insurance policy? → Treatment for a pre-existing condition after the waiting period expires
15. The Consideration clause in a life insurance policy indicates that a policyowner's consideration consists of a completed application and → the initial premium
16. Which type of health insurance policy pays a fixed dollar amount per day of hospitalization regardless of actual expenses? → Hospital indemnity policy
17. Which of the following statements pertaining to the Medical Information Bureau (MIB) is CORRECT? → The MIB provides assistance in the underwriting of life insurance
18. Under Medicare, a 'benefit period' ends when a beneficiary has been out of a hospital or skilled nursing facility for how many consecutive days? → 60 consecutive days
19. Under California law, a 'replacement' transaction in life insurance occurs when a new policy is purchased and within 5 years an existing policy is: → Lapsed, surrendered, converted, reduced, or used as collateral for the new policy
20. Under California law, the grace period for life insurance premiums is: → 30 days
21. Under a life insurance policy's 'facility of payment' clause, who may the insurer pay if the named beneficiary is a minor or incapacitated? → A relative or other person who can provide proof of financial dependency
22. Which life insurance policy provision allows a lapsed policy to be reinstated within a specified period? → Reinstatement provision
23. California's 'Knox-Keene Health Care Service Plan Act' primarily regulates which type of health organization? → Health Maintenance Organizations (HMOs)
24. A foreign insurance company is one that is incorporated → under the laws of another state
25. Under a business overhead expense (BOE) disability policy, which of the following is a covered expense? → Employee salaries, rent, and utilities of the business
26. In disability insurance, the period of time between when the disability started and the commencement of benefits is the: → Elimination Period
27. In legal terms, when one party's actions result in giving up a known right, what has the party created? → Waiver
28. Medicaid is funded through which funding arrangement? → Both the federal government and state governments jointly
29. Which setting is covered by most comprehensive long-term care insurance policies? → Nursing home, assisted living, and home care
30. A disability income policy's 'presumptive disability' provision provides benefits if the insured: → Suffers loss of sight, hearing, speech, or two limbs, regardless of ability to work