Exam terms
California Life & Health Insurance License exam terms
263 terms to know, grouped by exam module. Each links to its definition and the lesson that uses it.
General insurance concepts
- Application Used in Underwriting purpose and adverse selection
- Avocation Used in Underwriting purpose and adverse selection
- Avoidance Used in Loss exposure and risk management techniques
- Catastrophe concentration Used in Insurable risk requisites and insurable events
- Concealment Used in Insurable interest, indemnity, and utmost good faith
- Contingent event Used in Insurable risk requisites and insurable events
- Correlated losses Used in Hazard types and the law of large numbers
- Death benefit Used in Insurable interest, indemnity, and utmost good faith
- Deductible Used in Insurance, risk, and peril, Insurable interest, indemnity, and utmost good faith
- Direct loss Used in Loss exposure and risk management techniques
- Exclusion Used in Insurance, risk, and peril
- Expected loss Used in Hazard types and the law of large numbers
- Exposure unit Used in Insurable risk requisites and insurable events
- Fortuitous loss Used in Insurable risk requisites and insurable events
- Hazard Used in Insurance, risk, and peril, Hazard types and the law of large numbers
- Indirect loss Used in Loss exposure and risk management techniques
- Insurable interest Used in Insurance, risk, and peril, Insurable risk requisites and insurable events, Insurable interest, indemnity, and utmost good faith
- Insured Used in Insurance, risk, and peril
- Insurer Used in Insurance, risk, and peril
- Law of large numbers Used in Hazard types and the law of large numbers
- Liability exposure Used in Loss exposure and risk management techniques
- Loss Used in Insurance, risk, and peril
- Loss exposure Used in Loss exposure and risk management techniques
- Loss frequency Used in Hazard types and the law of large numbers, Loss exposure and risk management techniques
- Loss prevention Used in Loss exposure and risk management techniques
- Loss reduction Used in Loss exposure and risk management techniques
- Loss severity Used in Hazard types and the law of large numbers, Loss exposure and risk management techniques
- Material fact (insurance) Used in Insurable interest, indemnity, and utmost good faith
- Mere expectancy Used in Insurable risk requisites and insurable events, Insurable interest, indemnity, and utmost good faith
- Misrepresentation Used in Insurable interest, indemnity, and utmost good faith
- Moral hazard Used in Hazard types and the law of large numbers, Underwriting purpose and adverse selection
- Morale hazard Used in Hazard types and the law of large numbers
- Mortality Used in Underwriting purpose and adverse selection
- Peril Used in Hazard types and the law of large numbers
- Physical hazard Used in Hazard types and the law of large numbers
- Pooling Used in Hazard types and the law of large numbers
- Postponement Used in Underwriting purpose and adverse selection
- Preferred class Used in Underwriting purpose and adverse selection
- Premium Used in Insurance, risk, and peril
- Pure risk Used in Insurance, risk, and peril
- Reinsurance Used in Insurable risk requisites and insurable events
- Retention Used in Loss exposure and risk management techniques
- Risk classification Used in Underwriting purpose and adverse selection
- Risk sharing Used in Loss exposure and risk management techniques
- Risk transfer Used in Loss exposure and risk management techniques
- Self-insurance Used in Loss exposure and risk management techniques
- Speculative risk Used in Insurance, risk, and peril
- Standard rate Used in Underwriting purpose and adverse selection
- Substandard (rated) Used in Underwriting purpose and adverse selection
Insurance contract law
- Additional insured Used in Rescission rights and required policy specifications
- Aleatory contract Used in Elements and special characteristics of an insurance contract
- Beneficiary Used in Common insurance terminology
- Cancellation Used in Concealment, warranty, and representations, Rescission rights and required policy specifications
- Claim Used in Common insurance terminology
- Coinsurance Used in Common insurance terminology
- Commissioner of Insurance Used in Rescission rights and required policy specifications
- Competent parties Used in Elements and special characteristics of an insurance contract
- Conditional contract Used in Elements and special characteristics of an insurance contract
- Consideration Used in Elements and special characteristics of an insurance contract
- Contract of adhesion Used in Elements and special characteristics of an insurance contract
- Copayment Used in Common insurance terminology
- Deductible Used in Common insurance terminology
- Disability income insurance Used in Common insurance terminology
- Endorsement Used in Common insurance terminology
- Exclusion Used in Common insurance terminology
- Express warranty Used in Concealment, warranty, and representations
- Hazard Used in Common insurance terminology
- Implied warranty Used in Concealment, warranty, and representations
- Indemnity Used in Elements and special characteristics of an insurance contract, Common insurance terminology
- Insured Used in Common insurance terminology
- Insuring clause Used in Common insurance terminology
- Lapse Used in Common insurance terminology
- Legal purpose Used in Elements and special characteristics of an insurance contract
- Material fact (insurance) Used in Concealment, warranty, and representations
- Nonrenewal Used in Common insurance terminology
- Offer and acceptance Used in Elements and special characteristics of an insurance contract
- Peril Used in Common insurance terminology
- Personal contract Used in Elements and special characteristics of an insurance contract
- Policy Used in Rescission rights and required policy specifications, Common insurance terminology
- Policy conditions Used in Common insurance terminology
- Policyowner Used in Common insurance terminology
- Premium Used in Common insurance terminology
- Proof of loss Used in Elements and special characteristics of an insurance contract
- Representation Used in Concealment, warranty, and representations
- Rescission Used in Concealment, warranty, and representations, Rescission rights and required policy specifications
- Rider Used in Common insurance terminology
- Unilateral contract Used in Elements and special characteristics of an insurance contract
- Utmost good faith Used in Elements and special characteristics of an insurance contract
- Warranty Used in Elements and special characteristics of an insurance contract
The California insurance marketplace and licensing
- Admitted insurer Used in Insurer types, CDI/DMHC jurisdiction, and market regulation
- Alien insurer Used in Insurer types, CDI/DMHC jurisdiction, and market regulation
- Annuity Used in Ethics and conduct with senior citizens
- Annuity training Used in Producer licensing, appointments, and continuing education
- Appointment Used in Producer licensing, appointments, and continuing education
- Assessment Used in Insolvency, CLHIGA, and Fair Claims Settlement Practices Regulations
- Attorney-in-fact Used in Insurer types, CDI/DMHC jurisdiction, and market regulation
- Binding authority Used in Distribution systems and producer roles: agent, broker, and solicitor
- Broker-agent Used in Distribution systems and producer roles: agent, broker, and solicitor
- California Department of Insurance Used in Ethics and conduct with senior citizens, Insurer types, CDI/DMHC jurisdiction, and market regulation
- Community spouse resource allowance Used in Ethics and conduct with senior citizens
- Conservation order Used in Insolvency, CLHIGA, and Fair Claims Settlement Practices Regulations
- Continuing education Used in Producer licensing, appointments, and continuing education
- Covered California Used in Insurer types, CDI/DMHC jurisdiction, and market regulation
- Department of Managed Health Care Used in Insurer types, CDI/DMHC jurisdiction, and market regulation
- Direct response marketing Used in Distribution systems and producer roles: agent, broker, and solicitor
- Distribution system Used in Distribution systems and producer roles: agent, broker, and solicitor
- Domestic insurer Used in Insurer types, CDI/DMHC jurisdiction, and market regulation
- Exclusive agency system Used in Distribution systems and producer roles: agent, broker, and solicitor
- Extracontractual claim Used in Insolvency, CLHIGA, and Fair Claims Settlement Practices Regulations
- Fair Claims Settlement Practices Regulations Used in Insolvency, CLHIGA, and Fair Claims Settlement Practices Regulations
- Financial regulation Used in Insurer types, CDI/DMHC jurisdiction, and market regulation
- Foreign insurer Used in Insurer types, CDI/DMHC jurisdiction, and market regulation
- Fraternal benefit society Used in Insurer types, CDI/DMHC jurisdiction, and market regulation
- Free look Used in Ethics and conduct with senior citizens
- Guaranty association Used in Insolvency, CLHIGA, and Fair Claims Settlement Practices Regulations
- Health care service plan Used in Insurer types, CDI/DMHC jurisdiction, and market regulation
- Home meeting notice Used in Ethics and conduct with senior citizens
- Impaired insurer Used in Insolvency, CLHIGA, and Fair Claims Settlement Practices Regulations
- Inactive producer license Used in Producer licensing, appointments, and continuing education
- Independent agency Used in Distribution systems and producer roles: agent, broker, and solicitor
- Insolvent insurer Used in Insolvency, CLHIGA, and Fair Claims Settlement Practices Regulations
- License Used in Distribution systems and producer roles: agent, broker, and solicitor
- Licensing exemption Used in Distribution systems and producer roles: agent, broker, and solicitor
- Line of authority Used in Producer licensing, appointments, and continuing education
- Liquidation Used in Insolvency, CLHIGA, and Fair Claims Settlement Practices Regulations
- Market conduct regulation Used in Insurer types, CDI/DMHC jurisdiction, and market regulation
- Medi-Cal Used in Ethics and conduct with senior citizens, Insurer types, CDI/DMHC jurisdiction, and market regulation
- Member insurer Used in Insolvency, CLHIGA, and Fair Claims Settlement Practices Regulations
- Mutual company Used in Insurer types, CDI/DMHC jurisdiction, and market regulation
- Nonadmitted insurer Used in Insurer types, CDI/DMHC jurisdiction, and market regulation
- Nonresident license Used in Producer licensing, appointments, and continuing education
- Organizational license Used in Distribution systems and producer roles: agent, broker, and solicitor
- Prelicensing education Used in Producer licensing, appointments, and continuing education
- Producer Used in Distribution systems and producer roles: agent, broker, and solicitor
- Proof of claim Used in Insolvency, CLHIGA, and Fair Claims Settlement Practices Regulations
- Reciprocal (interinsurance) exchange Used in Insurer types, CDI/DMHC jurisdiction, and market regulation
- Reciprocity Used in Producer licensing, appointments, and continuing education
- Rehabilitation Used in Insolvency, CLHIGA, and Fair Claims Settlement Practices Regulations
- Senior designation Used in Ethics and conduct with senior citizens
- Stock company Used in Insurer types, CDI/DMHC jurisdiction, and market regulation
- Unfair claim settlement practice Used in Insolvency, CLHIGA, and Fair Claims Settlement Practices Regulations
Life insurance basics
- Beneficiary Used in Life insurance basics and the personal insurance planning process
- Cash value Used in Life insurance basics and the personal insurance planning process
- Corporate-owned life insurance Used in Insurable interest, mortality, and the immediate estate concept
- Coverage gap Used in Life insurance basics and the personal insurance planning process
- Death benefit Used in Life insurance basics and the personal insurance planning process, Insurable interest, mortality, and the immediate estate concept
- Human life value approach Used in Life insurance basics and the personal insurance planning process
- Immediate estate Used in Insurable interest, mortality, and the immediate estate concept
- Insurable interest Used in Insurable interest, mortality, and the immediate estate concept
- Insured Used in Life insurance basics and the personal insurance planning process
- Love and affection Used in Insurable interest, mortality, and the immediate estate concept
- Mortality table Used in Insurable interest, mortality, and the immediate estate concept
- Needs approach Used in Life insurance basics and the personal insurance planning process
- Permanent life insurance Used in Life insurance basics and the personal insurance planning process
- Policyowner Used in Life insurance basics and the personal insurance planning process
- Stranger-originated life insurance Used in Insurable interest, mortality, and the immediate estate concept
- Term life insurance Used in Life insurance basics and the personal insurance planning process
Types of life policies
- Account value Used in Term, whole, universal, and variable life policy classes
- Accumulation at interest Used in Participating, individual, and group life policies
- Annual renewable term Used in Term product types
- Attained age Used in Participating, individual, and group life policies, Term product types
- Certificate of insurance Used in Participating, individual, and group life policies
- Children's term rider Used in Special life coverages: mortgage redemption, family, juvenile, and survivorship
- Contributory plan Used in Participating, individual, and group life policies
- Conversion privilege Used in Participating, individual, and group life policies
- Convertible Used in Term, whole, universal, and variable life policy classes, Term product types
- Decreasing term Used in Term, whole, universal, and variable life policy classes, Special life coverages: mortgage redemption, family, juvenile, and survivorship, Term product types
- Divisible surplus Used in Participating, individual, and group life policies
- Evidence of insurability Used in Participating, individual, and group life policies, Term product types
- Family policy Used in Special life coverages: mortgage redemption, family, juvenile, and survivorship
- Guaranteed insurability rider Used in Special life coverages: mortgage redemption, family, juvenile, and survivorship
- Increasing death benefit option Used in Term, whole, universal, and variable life policy classes
- Increasing term Used in Term product types
- Joint life (first-to-die) Used in Special life coverages: mortgage redemption, family, juvenile, and survivorship
- Juvenile policy Used in Special life coverages: mortgage redemption, family, juvenile, and survivorship
- Lapse Used in Term, whole, universal, and variable life policy classes
- Level death benefit option Used in Term, whole, universal, and variable life policy classes
- Level term Used in Term, whole, universal, and variable life policy classes, Term product types
- Limited-pay whole life Used in Term, whole, universal, and variable life policy classes, Premium payment modes
- Master policy Used in Participating, individual, and group life policies
- Mode factor Used in Premium payment modes
- Mortgage redemption life Used in Special life coverages: mortgage redemption, family, juvenile, and survivorship
- Noncontributory plan Used in Participating, individual, and group life policies
- Nonparticipating policy Used in Participating, individual, and group life policies
- Ordinary whole life Used in Term, whole, universal, and variable life policy classes
- Paid-up additions Used in Participating, individual, and group life policies
- Participating policy Used in Participating, individual, and group life policies
- Payment method Used in Premium payment modes
- Payment period Used in Premium payment modes
- Payor benefit rider Used in Special life coverages: mortgage redemption, family, juvenile, and survivorship
- Policy dividends Used in Participating, individual, and group life policies
- Portability Used in Participating, individual, and group life policies
- Private mortgage insurance (PMI) Used in Special life coverages: mortgage redemption, family, juvenile, and survivorship
- Renewable Used in Term, whole, universal, and variable life policy classes, Term product types
- Return-of-premium rider Used in Term product types
- Separate account Used in Term, whole, universal, and variable life policy classes
- Single premium Used in Premium payment modes
- Survivorship (second-to-die) Used in Special life coverages: mortgage redemption, family, juvenile, and survivorship
- Universal life Used in Term, whole, universal, and variable life policy classes
- Variable life Used in Term, whole, universal, and variable life policy classes
- Variable universal life Used in Term, whole, universal, and variable life policy classes
Annuities
- Accumulation phase Used in Annuity definitions, parties, and uses
- Annuitant Used in Annuity definitions, parties, and uses
- Annuitization Used in Annuity definitions, parties, and uses
- Deferred annuity Used in Annuity definitions, parties, and uses
- Immediate annuity Used in Annuity definitions, parties, and uses
- Longevity risk Used in Annuity definitions, parties, and uses
- Owner Used in Annuity definitions, parties, and uses
- Period certain Used in Annuity definitions, parties, and uses
- Straight life (life only) Used in Annuity definitions, parties, and uses
- Tax-deferred Used in Annuity definitions, parties, and uses
Life insurance and annuity policy replacement and cancellation
- Account value Used in Free-look cancellation rights by applicant age
- Comparison statement Used in Replacement notice requirements and penalties
- Conservation Used in Replacement notice requirements and penalties
- Existing insurer Used in Replacement notice requirements and penalties
- Free look Used in Free-look cancellation rights by applicant age
- Modified guaranteed annuity Used in Free-look cancellation rights by applicant age
- Nonforfeiture values Used in Replacement notice requirements and penalties
- Policy fee Used in Free-look cancellation rights by applicant age
- Policy loan Used in Replacement notice requirements and penalties
- Replacement Used in Free-look cancellation rights by applicant age, Replacement notice requirements and penalties
- Replacement notice Used in Replacement notice requirements and penalties
- Replacing insurer Used in Replacement notice requirements and penalties
- Same-insurer replacement Used in Replacement notice requirements and penalties
- Senior free look Used in Free-look cancellation rights by applicant age
- Surrender charge Used in Replacement notice requirements and penalties
- Variable annuity Used in Free-look cancellation rights by applicant age
The individual life insurance contract
- Accelerated death benefit Used in Life settlement contracts
- Buyer's Guide Used in California life policy disclosures: illustrations, buyer's guide, and cost indexes
- Cash surrender value Used in California life policy disclosures: illustrations, buyer's guide, and cost indexes, Life settlement contracts, Common policy provisions: beneficiary designations, grace period, and nonforfeiture options
- Contingent (secondary) beneficiary Used in Common policy provisions: beneficiary designations, grace period, and nonforfeiture options
- Extended term insurance Used in Common policy provisions: beneficiary designations, grace period, and nonforfeiture options
- Fiduciary duty Used in Life settlement contracts
- Grace period Used in Common policy provisions: beneficiary designations, grace period, and nonforfeiture options
- Gross purchase price Used in Life settlement contracts
- Illustration Used in California life policy disclosures: illustrations, buyer's guide, and cost indexes
- Irrevocable beneficiary Used in Common policy provisions: beneficiary designations, grace period, and nonforfeiture options
- Life expectancy estimate Used in Life settlement contracts
- Life settlement Used in Life settlement contracts
- Life settlement broker Used in Life settlement contracts
- Life settlement provider Used in Life settlement contracts
- Net payment cost index Used in California life policy disclosures: illustrations, buyer's guide, and cost indexes
- Nonforfeiture Used in Common policy provisions: beneficiary designations, grace period, and nonforfeiture options
- Nonguaranteed elements Used in California life policy disclosures: illustrations, buyer's guide, and cost indexes
- Paid-up nonforfeiture benefit Used in Common policy provisions: beneficiary designations, grace period, and nonforfeiture options
- Policy debt Used in Common policy provisions: beneficiary designations, grace period, and nonforfeiture options
- Policy Summary Used in California life policy disclosures: illustrations, buyer's guide, and cost indexes
- Primary beneficiary Used in Common policy provisions: beneficiary designations, grace period, and nonforfeiture options
- Reduced paid-up insurance Used in Common policy provisions: beneficiary designations, grace period, and nonforfeiture options
- Revocable beneficiary Used in Common policy provisions: beneficiary designations, grace period, and nonforfeiture options
- Stranger-originated life insurance Used in Life settlement contracts
- Surrender cost index Used in California life policy disclosures: illustrations, buyer's guide, and cost indexes
- Time value of money Used in California life policy disclosures: illustrations, buyer's guide, and cost indexes
Taxation of life insurance and annuities
- Annuitization Used in Tax treatment of life insurance and annuities, including modified endowment contracts
- Cost basis Used in Tax treatment of life insurance and annuities, including modified endowment contracts
- Exclusion ratio Used in Tax treatment of life insurance and annuities, including modified endowment contracts
- Investment in the contract Used in Tax treatment of life insurance and annuities, including modified endowment contracts
- Modified endowment contract (MEC) Used in Tax treatment of life insurance and annuities, including modified endowment contracts
- Nonqualified plan Used in Tax treatment of life insurance and annuities, including modified endowment contracts
- Policy dividends Used in Tax treatment of life insurance and annuities, including modified endowment contracts
- Policy loan Used in Tax treatment of life insurance and annuities, including modified endowment contracts
- Premature distribution tax Used in Tax treatment of life insurance and annuities, including modified endowment contracts
- Qualified plan Used in Tax treatment of life insurance and annuities, including modified endowment contracts
- Seven-pay test Used in Tax treatment of life insurance and annuities, including modified endowment contracts
- Tax-deferred Used in Tax treatment of life insurance and annuities, including modified endowment contracts
Individual underwriting, pricing, and claims
- Attending physician's statement Used in Individual life underwriting, pricing, and claims
- Financial underwriting Used in Individual life underwriting, pricing, and claims
- Gross premium Used in Individual life underwriting, pricing, and claims
- HIV-related test Used in Individual life underwriting, pricing, and claims
- Interest on death proceeds Used in Individual life underwriting, pricing, and claims
- Investigative consumer report Used in Individual life underwriting, pricing, and claims
- Medical Information Bureau Used in Individual life underwriting, pricing, and claims
- Medical underwriting Used in Individual life underwriting, pricing, and claims
- Net premium Used in Individual life underwriting, pricing, and claims
- Proof of death Used in Individual life underwriting, pricing, and claims
- Risk classification Used in Individual life underwriting, pricing, and claims
- Settlement option Used in Individual life underwriting, pricing, and claims
- Substandard (rated) Used in Individual life underwriting, pricing, and claims
- Written informed consent Used in Individual life underwriting, pricing, and claims
Life policy riders
- Accelerated death benefit Used in Life policy riders
- Accidental death and dismemberment (AD&D) Used in Life policy riders
- Accidental death benefit Used in Life policy riders
- Attained age Used in Life policy riders
- Disability income rider Used in Life policy riders
- Guaranteed insurability rider Used in Life policy riders
- Long-term care insurance Used in Life policy riders
- Payor benefit rider Used in Life policy riders
- Return-of-premium rider Used in Life policy riders
- Rider Used in Life policy riders
- Term rider Used in Life policy riders
- Waiver of premium rider Used in Life policy riders
Browse the full A–Z glossary · Flashcards · Back to the California exam hub