Free California Life & Health Insurance License Exam Practice Test

Sample CA L&H practice questions

Try a few representative questions below. Each includes the correct answer and a short explanation — the same style you'll see in the full practice test.

1. Question 1Disability Income Insurance

   A California resident, Mr. Henderson, is insured under a group disability income policy. The policy's benefit period is 5 years. Mr. Henderson becomes totally disabled after 10 years of employment with the same employer. The policy defines 'total disability' as the inability to perform the substantial and material duties of his regular occupation for the first 24 months of disability, and thereafter, the inability to engage in any occupation for which he is reasonably fitted by education, training, or experience. If Mr. Henderson is unable to perform his regular occupation for 18 months and then becomes unable to perform any occupation for which he is reasonably fitted for an additional 30 months, how long will the policy pay benefits?

   • A.60 months
   • B.24 months
   • C.36 months
   • D.48 months(Correct)

   Explanation

   The policy defines 'total disability' in two phases. The first 24 months cover inability to perform the regular occupation. After 24 months, the definition changes to inability to perform any occupation for which the insured is reasonably fitted. Mr. Henderson qualifies for the first phase for 18 months. He then qualifies for the second phase for an additional 30 months. Therefore, the total benefit payment period is 18 months + 30 months = 48 months.

2. Question 2Life Insurance Riders

   A life insurance policy has a Guaranteed Insurability Rider. The insured, age 35, has exercised the option to purchase an additional $50,000 of coverage on their 30th birthday. On their 40th birthday, they want to exercise the option again to purchase an additional $50,000. What is the maximum additional coverage the insured can purchase on their 40th birthday, assuming the original policy was for $250,000 and the rider allows for options on birthdays occurring every 3 years until age 40?

   • A.$75,000
   • B.$50,000(Correct)
   • C.$150,000
   • D.$100,000

   Explanation

   The Guaranteed Insurability Rider typically allows for a specific amount of additional coverage to be purchased on specified option dates. The question states the insured already exercised an option for $50,000 on their 30th birthday. The rider allows options every 3 years until age 40. Therefore, the next option date would be age 33, then age 36, and finally age 39. If the rider permits purchasing the *same* amount ($50,000) on each option date up to age 40, and the insured already exercised one option, they can exercise another option on their 40th birthday (or the last option date before 40, which is age 39). The maximum additional coverage they can purchase on their 40th birthday is the amount specified for that option, which is typically the same as previous options if not otherwise stated. Assuming the rider allows for an additional $50,000 purchase on each option date up to and including age 39, and the insured has already exercised one, they can purchase another $50,000 on their 40th birthday.

3. Question 3Medicare Supplement Insurance

   Which of the following is a condition that would typically NOT be covered by a standard Medicare Supplement (Medigap) policy?

   • A.The first three pints of blood for a covered blood transfusion
   • B.The coinsurance and copayment amounts for Medicare Part A hospital services
   • C.Services provided by a Medicare-approved provider that are not considered medically necessary by Medicare(Correct)
   • D.The deductible for Medicare Part B medical services

   Explanation

   Medicare Supplement policies are designed to fill the 'gaps' in Medicare Parts A and B coverage. They cover cost-sharing amounts like deductibles, coinsurance, and copayments. However, Medigap policies only cover services that Medicare itself covers. If Medicare determines a service is not medically necessary, it will not pay for it, and therefore, a Medigap policy will not cover it either.

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