Life and Health California Exam California Health and Life Insurance Regulations 1 — Questions and Answers
Question 1: Under California law, which entity regulates the business of insurance within the state?
- The California Department of Finance
- The California Department of Insurance (CDI) (Correct answer)
- The California Health Benefits Review Program
- The California Secretary of State
Correct answer: The California Department of Insurance (CDI)
The California Department of Insurance (CDI), headed by the elected Insurance Commissioner, regulates all aspects of the insurance industry within California.
Question 2: A California life or health insurance agent license is valid for:
- 1 year
- 2 years (Correct answer)
- 4 years
- 5 years
Correct answer: 2 years
California insurance agent licenses are issued on a 2-year basis, with renewal requiring continuing education (CE) hours completed during the license term.
Question 3: Under California law, how many hours of continuing education (CE) are required to renew a life and health insurance agent license?
- 12 hours
- 24 hours (Correct answer)
- 30 hours
- 48 hours
Correct answer: 24 hours
California requires 24 hours of approved continuing education every 2 years for life and health agents, including 3 hours of ethics.
Question 4: Under the California Insurance Code, the 'free look' period for individual life insurance policies is:
- 10 days (Correct answer)
- 30 days
- 20 days
- 60 days
Correct answer: 10 days
California requires a minimum 10-day free-look period for individual life insurance policies (30 days for seniors aged 60+), during which the policyowner may return the policy for a full premium refund.
Question 5: California's 'Knox-Keene Health Care Service Plan Act' primarily regulates which type of health organization?
- Medicare Advantage plans
- Health Maintenance Organizations (HMOs) (Correct answer)
- Traditional indemnity health insurers
- Employer self-funded plans
Correct answer: Health Maintenance Organizations (HMOs)
The Knox-Keene Act provides the legal framework for licensing and regulating Health Maintenance Organizations (HMOs) in California, overseen by the Department of Managed Health Care (DMHC).
Question 6: Under California law, an insurer must pay or deny a health insurance claim within how many working days of receiving all information needed to process the claim?
- 5 working days
- 15 working days (Correct answer)
- 30 working days
- 45 working days
Correct answer: 15 working days
California law requires health insurers to pay or deny a complete claim within 15 working days of receiving all necessary information, or within 30 calendar days of receiving the claim.
Life and Health California Exam California Health and Life Insurance Regulations 1
Under California law, which entity regulates the business of insurance within the state?