Free practice test
California Insurance Law Practice Test
25 questions on the California statutes and rules section only: the part of the exam generic national prep covers least. Every question shows its answer and explanation. No sign-up.
Question 1 of 25
A California property agency redesigns a worker's duties to meet the clerical exemption. The worker is regularly salaried and receives no commission. Which assignment fits section 1635(i)(1)?
Reveal answer
Correct answer: Administrative record filing without soliciting, negotiating, or effecting insurance from the public
Administrative work excluding the listed sales activities fits the exemption's duty limits.
From the free practice set Distribution systems and producer roles: agent, broker, and solicitor
Question 2 of 25
Which product is expressly included in the scope of California's life license under section 1626?
Reveal answer
Correct answer: Annuities
California's life license covers human lives, including endowment benefits and annuities.
From the free practice set Distribution systems and producer roles: agent, broker, and solicitor
Question 3 of 25
A 58-year-old California purchaser's ordinary nonreplacement individual life policy states a 20-day free look. He claims age alone entitles him to 30 days. Which assessment is best?
Reveal answer
Correct answer: Twenty days falls within the ordinary 10-to-30-day range; his age does not require the senior minimum
For this ordinary younger-purchaser life policy, 20 days lies within the general 10-to-30-day range. Age 58 does not invoke the senior minimum.
From the free practice set Free-look cancellation rights by applicant age
Question 4 of 25
Under California section 1627, who may exercise the agency or brokerage powers of an organizational property broker-agent license, subject to applicable law?
Reveal answer
Correct answer: The natural persons named on that license
Section 1627 permits named natural persons to exercise the organization's powers, while the organization remains the holder.
From the free practice set Distribution systems and producer roles: agent, broker, and solicitor
Question 5 of 25
A California insurer owns a separate licensed casualty agency. The agency transacts insurance with and on behalf of that insurer. In which capacity does it act for this transaction?
Reveal answer
Correct answer: Insurance agent
Section 1649.5 assigns agent capacity to a property or casualty broker-agent transacting with and on behalf of its owning insurer.
From the free practice set Distribution systems and producer roles: agent, broker, and solicitor
Question 6 of 25
A California agency offers an otherwise qualifying clerical employee an indirect commission on insurance sales. Why is the section 1635 exemption unavailable on those facts?
Reveal answer
Correct answer: The section's condition excludes commissions paid or allowed directly or indirectly
Section 1635 conditions its stated exemptions on no direct or indirect commission; salary is not the same as commission.
From the free practice set Distribution systems and producer roles: agent, broker, and solicitor
Question 7 of 25
At what age does California's senior individual life and annuity free-look protection begin?
Reveal answer
Correct answer: 60
The senior age threshold for this California free-look protection is 60. Other age thresholds govern different insurance or retirement rules.
From the free practice set Free-look cancellation rights by applicant age
Question 8 of 25
Under California section 1627, who holds a life agency license issued to an organization?
Reveal answer
Correct answer: The organization to which the license was issued
The organization is the license holder; named natural persons may exercise its powers subject to law.
From the free practice set Distribution systems and producer roles: agent, broker, and solicitor
Question 9 of 25
Which distribution arrangement generally has an agency representing one insurer or insurer group?
Reveal answer
Correct answer: Exclusive agency
An exclusive, or captive, agency generally represents one insurer or insurer group.
From the free practice set Distribution systems and producer roles: agent, broker, and solicitor
Question 10 of 25
Mira represents four insurers and acts on behalf of one of them when selling its policy. Which description best fits these facts?
Reveal answer
Correct answer: An independent agent acting for an insurer in this transaction
Several insurer relationships fit independent agency distribution, while acting for an insurer identifies the agent role in this sale.
From the free practice set Distribution systems and producer roles: agent, broker, and solicitor
Question 11 of 25
A trainee reasons that because both California life and accident and health or sickness licenses may include disability income, an accident and health or sickness license also authorizes annuities. What is the error?
Reveal answer
Correct answer: Overlap in one benefit does not make the two license scopes interchangeable
Section 1626 places annuities in the life category; shared disability income language does not merge the categories.
From the free practice set Distribution systems and producer roles: agent, broker, and solicitor
Question 12 of 25
Which statement about a producer's title and power to bind coverage is most accurate?
Reveal answer
Correct answer: Neither agent nor broker as a title alone establishes binding authority
Binding authority requires authorization; a role label or distribution arrangement alone is insufficient.
From the free practice set Distribution systems and producer roles: agent, broker, and solicitor
Question 13 of 25
A case description says only that a producer compared three insurers' policies. Which additional fact best determines whether the producer acted as an agent or a broker in the placement?
Reveal answer
Correct answer: Whether the producer acted on behalf of an insurer or the customer
The represented party identifies the standard agent-versus-broker distinction; the number of comparisons does not.
From the free practice set Distribution systems and producer roles: agent, broker, and solicitor
Question 14 of 25
A California casualty broker-agent proposes retaining agent authority while adding solicitor authority, arguing that both jobs involve selling insurance. Which conclusion follows?
Reveal answer
Correct answer: The concurrent capacities conflict with section 1640 despite their shared sales purpose
Similarity of work does not override California's prohibition on concurrent solicitor and agent authority.
From the free practice set Distribution systems and producer roles: agent, broker, and solicitor
Question 15 of 25
For a California senior's timely variable-policy return without mutual-fund direction, when must premiums and any policy fee be refunded?
Reveal answer
Correct answer: Within 30 days after the insurer is notified of cancellation
The refund deadline under section 10127.10(a)(1) is 30 days from notification to the insurer of cancellation.
From the free practice set Free-look cancellation rights by applicant age
Question 16 of 25
A 70-year-old California owner receives a modified guaranteed annuity and returns it within 30 days. Which statutory notice treatment applies?
Reveal answer
Correct answer: The nonvariable-product notice providing a full refund for timely return
Section 10127.10(c) expressly includes modified guaranteed annuities within its senior nonvariable full-refund notice requirement.
From the free practice set Free-look cancellation rights by applicant age
Question 17 of 25
A California senior timely returns a variable life policy without having directed investment in underlying mutual funds. What is the legal effect on the policy?
Reveal answer
Correct answer: It is void from the beginning, restoring the parties to the position as if it had not been issued
Section 10127.10(a)(1) makes this timely return void the policy from inception and restores the parties to their pre-policy position.
From the free practice set Free-look cancellation rights by applicant age
Question 18 of 25
A California broker proposes retaining broker authority while accepting solicitor authority for a different agency. Does using a different agency resolve the issue under section 1640?
Reveal answer
Correct answer: No, because the restriction concerns concurrent broker and solicitor authority
Section 1640 prohibits concurrent broker and solicitor authority without an exception based on separate agencies.
From the free practice set Distribution systems and producer roles: agent, broker, and solicitor
Question 19 of 25
Two producers both use websites. One works for several insurers; the other for one insurer group. What best distinguishes their distribution arrangements?
Reveal answer
Correct answer: The first is independent and the second exclusive; website use does not decide that distinction
Insurer relationships distinguish independent from exclusive agency arrangements; using a website is not decisive.
From the free practice set Distribution systems and producer roles: agent, broker, and solicitor
Question 20 of 25
Which pair of products is expressly within California's senior cancellation-notice rule in section 10127.10(a)?
Reveal answer
Correct answer: Individual life insurance policies and individual annuity contracts
The provision expressly covers every individual life policy and individual annuity contract delivered or issued for delivery to a senior within its scope.
From the free practice set Free-look cancellation rights by applicant age
Question 21 of 25
An independent agency offers a customer's preferred policy from one of its several represented insurers. The customer concludes that the agency became exclusive when it selected one policy. Why is that conclusion mistaken?
Reveal answer
Correct answer: The arrangement depends on the agency's insurer relationships, not the selection made in one transaction
Selecting one insurer for a transaction does not replace an independent agency's relationships with several insurers.
From the free practice set Distribution systems and producer roles: agent, broker, and solicitor
Question 22 of 25
A California property broker-agent license can authorize which set of roles, subject to applicable restrictions?
Reveal answer
Correct answer: Agent, broker, or solicitor
Section 1625 expressly includes agent, broker, and solicitor within the property or casualty licensing framework.
From the free practice set Distribution systems and producer roles: agent, broker, and solicitor
Question 23 of 25
What question does an insurance distribution system primarily answer?
Reveal answer
Correct answer: How an insurer reaches its customers
Distribution concerns the route through which an insurer reaches customers, distinct from licensing and transaction authority.
From the free practice set Distribution systems and producer roles: agent, broker, and solicitor
Question 24 of 25
A producer wants to compare several insurers while continuing to act as an insurer's agent when selling a selected policy. Which arrangement can accommodate that description?
Reveal answer
Correct answer: An independent agency representing several insurers
An independent agency can represent several insurers and still act as an insurer's agent in a transaction.
From the free practice set Distribution systems and producer roles: agent, broker, and solicitor
Question 25 of 25
Nora works for a broker to solicit insurance rather than independently arranging placements for customers. Which standard role description most directly fits her work?
Reveal answer
Correct answer: Solicitor
Working for an agent or broker to solicit insurance describes the solicitor role.
From the free practice set Distribution systems and producer roles: agent, broker, and solicitor
Ready when you are
Want the timed, full-length version? The mock exam runs like test day. A plan opens all 1186 questions across the California exam, plus spoken rationales and audio you can study while driving.
How this test is built
Questions are drawn from the 389 free practice questions for California, one free practice set per exam module. Each module gets questions in proportion to its share of the state law section. The test only changes when the course content is updated.
| Module | Share of exam | Questions here |
|---|---|---|
| 3. The California insurance marketplace and licensing Free practice: Distribution systems and producer roles: agent, broker, and solicitor | 18% | 19 |
| 7. Life insurance and annuity policy replacement and cancellation Free practice: Free-look cancellation rights by applicant age | 5% | 6 |