101PD

Life and Health · 30 hours

California Life and Health Insurance Exam Prep — California Exam Prep, 30 hours

California Life and Health Insurance Exam Prep covers policy concepts, California rules, ethics, and licensing questions. Delivery, credential, and regulatory-credit eligibility are stated on the course page.

Professional training or exam-preparation material. No CE/MCLE/CPE credit hours are issued.

Course at a glance

Level
Beginner
Estimated time
30 hours
Prerequisite
No prior 101PD course is required. Check any separate exam, employer, or role eligibility before relying on this training.

Skills you will practice

  • Explain and apply §1.1 Definition and structure.
  • Explain and apply §1.2 Risk, peril, hazard.
  • Explain and apply §1.3 Law of large numbers; adverse selection.
  • Explain and apply §1.4 Ideally insurable risk (6 tests).
  • Explain and apply §1.5 Risk management (STARR).

Learning objectives

  • Explain and apply §1.1 Definition and structure.
  • Explain and apply §1.2 Risk, peril, hazard.
  • Explain and apply §1.3 Law of large numbers; adverse selection.
  • Explain and apply §1.4 Ideally insurable risk (6 tests).
  • Explain and apply §1.5 Risk management (STARR).

Assessment and timing

Knowledge check plus 2 final exam versions.

Passing score: 70%.

Final timing: 1 minute per question.

Hands-on practice

Applied course exercises

Use the course rules in practical scenarios and exercises drawn from the published syllabus.

  • §1.10 Chapter clinic — decisions, drills, and the number bank
  • A. Decision clinic — twelve calls, with reasoning
  • §2.7 Chapter clinic
  • A. Decision clinic — ten calls
  • §3.6 Unfair practices
  • Answer-elimination workshop — three marketplace questions, worked

Full syllabus

Chapter 1 — Basic Insurance Concepts and Principles (16 of 150 Q)

  • §1.1 Definition and structure
  • §1.2 Risk, peril, hazard
  • §1.3 Law of large numbers; adverse selection
  • §1.4 Ideally insurable risk (6 tests)
  • §1.5 Risk management (STARR)
  • §1.6 Insurable interest (life/health)
  • §1.7 Insurance vs wagering
  • §1.8 Reinsurance
  • §1.9 Health lens
  • Exam triggers
  • Trap pairs — answer-splitting distinctions
  • Worked mini-drill
  • Five-question self-test (answers below)

Chapter 1 — Basic Insurance Concepts and Principles

  • §1.1 What insurance is — the §22 definition and what it excludes
  • §1.2 Risk, peril, hazard — three words that never mean the same thing
  • §1.3 The law of large numbers, homogeneity, and adverse selection
  • §1.4 The ideally insurable risk — the checklist the exam actually tests
  • §1.5 Managing risk — the five techniques and when each is right
  • §1.6 Insurable interest and indemnity — California's life and health rules
  • §1.7 Insurance versus gambling — and why the distinction matters
  • §1.8 Reinsurance — insurance for insurers
  • §1.9 The health-side lens — mortality, morbidity, and medical loss exposures
  • §1.10 Chapter clinic — decisions, drills, and the number bank
  • A. Decision clinic — twelve calls, with reasoning
  • B. Rapid drill — 20 one-liners (cover the right column)
  • C. Number bank
  • D. Self-check Q&A
  • §1.11 The fraud gallery — six schemes every new licensee should recognize
  • §1.12 Myths corrected — the ten misconceptions that cost exam points
  • §1.13 Exam-day playbook — how to take THIS exam

Chapter 2 — Insurance Contract Law (10 of 150 Q)

  • §2.1 Formation
  • §2.2 Six characteristics
  • §2.3 Concealment — §§330–339
  • §2.4 Representations — §§350–361
  • §2.5 Warranties — §§440–449
  • §2.6 Shields
  • §2.7 The fuse
  • Exam triggers
  • Trap pairs
  • Day-one formation timeline (memorize as a film strip)
  • Worked mini-drill
  • Five-question self-test (answers below)
  • Sixteen-term contract-law glossary (one-liners)

Chapter 2 — Insurance Contract Law

  • §2.1 The four formation elements — and who offers what to whom
  • §2.2 The six distinctive characteristics — each with its consequence
  • §2.3 Concealment — Ins C §§330–339
  • §2.4 Representations — Ins C §§350–361
  • §2.5 Warranties — Ins C §§440–449 — and why insurers avoid them
  • §2.6 Waiver, estoppel, and ambiguity — the insured's shields
  • §2.7 Chapter clinic
  • A. Decision clinic — ten calls
  • B. Rapid drill — 16 one-liners
  • C. Number bank
  • D. Self-check Q&A
  • §2.8 Guided statute reading — the concealment article, line by line
  • §2.9 Drill set two — formation timing (8 quick calls)

Chapter 3 — Marketplace, Producers, Regulation, Ethics, Fair Claims (14 of 150 Q)

  • §3.1 Distribution
  • §3.2 Producers
  • §3.3 Insurers
  • §3.4 Surplus lines
  • §3.5 Commissioner & CLHIGA
  • §3.6 Unfair practices
  • §3.7 Fair claims (10 CCR §2695)
  • §3.8 Privacy
  • §3.9 Fraud & ethics
  • Exam triggers
  • The day-count master table (marketplace + claims)
  • Trap pairs
  • Worked mini-drill
  • Five-question self-test (answers below)
  • Answer-elimination workshop — three marketplace questions, worked

Chapter 3 — The Insurance Marketplace: Producers, Insurers, Regulation, Ethics and Fair Claims

  • §3.1 Distribution systems
  • §3.2 Producers — licenses, appointments, money, and records
  • §3.3 Insurers — status, domicile, and ownership
  • §3.4 Surplus and excess lines — the safety valve
  • §3.5 The Commissioner and the Department
  • §3.6 Unfair practices — §790.03 and the producer-conduct statutes
  • §3.7 Fair Claims Settlement Practices Regulations — 10 CCR §2695, the 15/40/30 clock
  • §3.8 Privacy — the statutes a producer actually touches
  • §3.9 Fraud — the felony statutes and the producer's role
  • §3.10 The ethics core — the CDI objectives' working list
  • §3.11 Chapter clinic
  • A. Decision clinic — twelve calls
  • B. Rapid drill — 18 one-liners
  • C. Number bank
  • D. Self-check Q&A
  • §3.12 Guided statute reading — §790.03 walked as an enforcement lawyer reads it
  • §3.13 Marketplace math — commissions, countersignature, and the paper trail
  • §3.14 The California code map — one table to organize the whole exam
  • §3.15 The licensing journey walked — application to first commission

Chapter 4 — Life Basics and Policy Types (18 of 150 Q)

  • §4.1 Uses & sizing
  • §4.2 Parties
  • §4.3 Premiums
  • §4.4 Term
  • §4.5 Whole life
  • §4.6 Universal life
  • §4.7 Variable
  • §4.8 Multi-life & niche
  • §4.9 The design matrix
  • Exam triggers
  • Policy-picker table (the 10 classic prompts)
  • §4.10 Formula box
  • Worked mini-drill
  • Five-question self-test (answers below)
  • §4.11 Twenty-term life glossary (one-liners)

Chapter 4 — Life Insurance Basics and Types of Life Policies

  • §4.1 Why life insurance — and how much
  • §4.2 The parties and third-party ownership
  • §4.3 Premiums — factors, modes, and effective dates
  • §4.4 Term life — pure protection
  • §4.5 Whole life — the permanent chassis
  • §4.6 Universal life — flexible premium, adjustable benefit
  • §4.7 Variable products — the securities overlay
  • §4.8 Multiple-life, juvenile, and niche designs
  • §4.9 Choosing the chassis — the advisor's matrix
  • §4.10 Chapter clinic
  • A. Decision clinic — ten calls
  • B. Rapid drill — 18 one-liners
  • C. Number bank
  • D. Self-check Q&A
  • §4.11 The illustration-reading discipline — guaranteed vs current columns
  • §4.12 Design workbook — six clients, worked to an answer
  • §4.13 Vocabulary bank — life-side terms that decide close answers

Chapter 5 — Contract Provisions, Riders, Replacement, Group, Social Security, Underwriting (24 of 150 Q)

  • §5.1 Skeleton
  • §5.2 Premium/lapse stack (CA)
  • §5.3 Defenses
  • §5.4 Beneficiaries
  • §5.5 Values
  • §5.6 Settlement options
  • §5.7 Riders
  • §5.8 Replacement (§§10509–10509.9)
  • §5.9 Group life
  • §5.10 Social Security
  • §5.11 Underwriting → claims
  • Exam triggers
  • The clocks table (life contract)
  • Trap pairs
  • Worked mini-drill
  • Five-question self-test (answers below)
  • Twenty-term contract glossary (one-liners)

Chapter 5 — The Individual Life Contract, Riders, Replacement, Underwriting, Group Life, and Social Security

  • §5.1 Ownership provisions and the policy's skeleton
  • §5.2 Premium, lapse, and revival provisions — California's protective stack
  • §5.3 The defensive provisions — contestability, suicide, misstatement
  • §5.4 Beneficiaries — the law the exam mines hardest
  • §5.5 Policy values — dividends, nonforfeiture, loans
  • §5.6 Settlement options — how proceeds pay out
  • §5.7 Riders — match the trigger to the benefit
  • §5.8 Replacement and conservation — legal when honest, illegal when twisted
  • §5.9 Group life — the two-question block
  • §5.10 Social Security survivors — the one-question toolkit
  • §5.11 Underwriting, pricing, and claims — application to payout
  • §5.12 Chapter clinic
  • A. Decision clinic — fourteen calls
  • B. Rapid drill — 22 one-liners
  • C. Number bank
  • D. Self-check Q&A
  • §5.13 Settlement-option workbook — the arithmetic the exam implies
  • §5.14 Case walked — the beneficiary dispute file
  • §5.15 Underwriting file drill — order the evidence
  • §5.16 Integration cases — three scenarios that cross chapters

Chapter 6 — Annuities and Taxation (11 of 150 Q)

  • §6.1 Structure
  • §6.2 Classes
  • §6.3 Payouts (most → least per month)
  • §6.4 Mechanics
  • §6.5 SB 263 (eff. 1-1-2025)
  • §6.6 Life tax grid
  • §6.7 Annuity tax grid
  • Exam triggers
  • Tax grid — one table
  • Worked mini-drill
  • Five-question self-test (answers below)
  • Twenty-term annuity & tax glossary (one-liners)

Chapter 6 — Annuities and the Taxation of Life Insurance and Annuities

  • §6.1 What an annuity is — and the cast
  • §6.2 Classification — three axes
  • §6.3 Payout options — ranked and reasoned
  • §6.4 Contract mechanics — charges, corridors, sweeteners
  • §6.5 Uses — and California's best-interest overlay (verified live 2026-07-31)
  • §6.6 Taxation of life insurance — the six questions that recur
  • §6.7 Taxation of annuities
  • §6.8 Chapter clinic
  • A. Decision clinic — ten calls
  • B. Rapid drill — 16 one-liners
  • C. Number bank
  • D. Self-check Q&A
  • §6.9 Tax workbook — ten worked problems
  • §6.10 Suitability file — what SB 263 documentation actually looks like

Chapter 7 — Medical Expense: Individual, Group, ACA (34 of 150 Q)

  • §7.1 California map
  • §7.2 Core concepts
  • §7.3 Architectures
  • §7.4 Renewability ladder
  • §7.5 Uniform provisions (individual — §§10350–10361)
  • §7.6 ACA
  • §7.7 Group & continuation
  • §7.8 CA mandates
  • §7.9 Dental/vision/excepted
  • Exam triggers
  • The day-count master table (health)
  • Trap pairs
  • Chain-math drill
  • Five-question self-test (answers below)
  • Twenty-term health glossary (one-liners)
  • Answer-elimination workshop — three health questions, worked

Chapter 7 — Medical Expense Insurance: Individual, Group, and the ACA

  • §7.1 The California map — two regulators, one market
  • §7.2 General concepts — the four-question toolkit (AH II)
  • §7.3 Plan architectures — from indemnity to HDHP
  • §7.4 Renewability — the five-rung ladder (individual policies)
  • §7.5 The mandatory uniform provisions — day-counts the exam loves (Ins C §§10350–10361)
  • §7.6 The ACA architecture (AH III.C — 8 questions)
  • §7.7 Group medical (AH III.B) — mechanics, continuation, portability
  • §7.8 California's distinctive mandates — where this exam gets its state flavor
  • §7.9 Dental, vision, and limited benefit plans
  • §7.10 Chapter clinic
  • A. Decision clinic — twelve calls
  • B. Rapid drill — 20 one-liners
  • C. Number bank
  • D. Self-check Q&A
  • §7.11 Claims-money workbook — eight chains, worked
  • §7.12 Case walked — the two-regulator maze
  • §7.13 Integration cases — the health-side crossovers
  • §7.14 Myths corrected — the health-side misconception ledger

Chapter 8 — Senior Products, Disability Income, LTC (23 of 150 Q)

  • §8.1 Medicare A/B
  • §8.2 C & D
  • §8.3 Medigap
  • §8.4 CA senior rules
  • §8.5 Disability income
  • §8.6 LTC
  • Exam triggers
  • Medicare quick tables
  • Trap pairs
  • Worked mini-drill
  • Five-question self-test (answers below)
  • Master appendix — every number on one page
  • Day-counts
  • Percentages
  • Dollars & counts

Chapter 8 — Senior Health Products, Disability Income, and Long-Term Care

  • §8.1 Medicare — the federal chassis (A and B)
  • §8.2 Parts C and D — private Medicare
  • §8.3 Medigap — Medicare supplement insurance
  • §8.4 California's senior-sales statutes — where licenses are lost
  • §8.5 Disability income — architecture (AH IV)
  • §8.6 Long-term care insurance (AH V)
  • §8.7 Chapter clinic
  • A. Decision clinic — twelve calls
  • B. Rapid drill — 20 one-liners
  • C. Number bank
  • D. Self-check Q&A
  • §8.8 Medicare arithmetic workbook
  • §8.9 Case file — the senior suitability autopsy
  • §8.10 Vocabulary bank — health-side terms that decide close answers
  • §8.11 The final-week calendar — how to close preparation
  • §8.12 Appendix — 40 mixed rapid-fire (whole-course sweep)

Sample from Part I

Chapter 1 — Basic Insurance Concepts and Principles (16 of 150 Q) High-yield review. Full doctrine: Treatise Ch. 1. Practice material — not affiliated with CDI/PSI. §1.1 Definition and structure - Ins C §22: contract; indemnify; loss/damage/liability; contingent or unknown event. - Life = valued contract (face amount), not strict indemnity; DI capped at ~60–70% of earnings to keep indemnity discipline. - Insurance = risk transfer + pooling. Substance over label: anything meeting §22 IS insurance. §1.2 Risk, peril, hazard - Risk uncertainty of loss · peril cause · hazard increases likelihood/severity. - Pure risk (loss/no-loss) insurable; speculative (loss or gain) never. - Hazards: physical (condition), moral (dishonesty), morale (carelessness); legal hazard = claim-enlarging environment. §1.3 Law of large numbers; adverse selection - Predictability rises with pool size; requires large + homogeneous exposure units. - Mortality tables (life) / morbidity tables (health). - Adverse selection = high-risk buy more; countered by underwriting, waiting periods, exclusions — and in ACA medical by enrollment windows, not health underwriting. §1.4 Ideally insurable risk (6 tests) Due to chance · definite & measurable · statistically predictable · not catastrophic · large homogeneous pool · economically feasible premium. War/nuclear fail catastrophe; certainties (wear, routine care) fail chance/feasibility. §1.5 Risk management (STARR) Sharing · Transfer (insurance; hold-harmless) · Avoidance · Retention (deductibles, SIR, self-insurance) · Reduction (loss control). High-severity/low-frequency → insure; low/low or high-frequency/low-severity → retain-budget. §1.6 Insurable interest (life/health) - §10110: self (unlimited) · dependence for support/education · legal obligation (creditor capped by debt) · vested economic interest. - Timing: life = inception only (§10110.1(d)); property = at loss. Owner needs it, not the beneficiary. - Another adult insured → written consent. No interest/consent → void wager; STOLI void — time never cures it. Legit later sale = life settlement (regulated). §1.7 Insurance vs wagering Wager creates risk; insurance transfers existing pure risk. Insurable interest is the legal divider. §1.8 Reinsurance Ceding insurer → reinsurer; treaty (automatic, class-wide) vs facultative (per-risk). Purposes: capacity, stabilization, catastrophe, surplus relief. Policyholder is not a party; ceding insurer stays fully liable. §1.9 Health lens Mortality vs morbidity; three health exposures: medical costs, lost income (more likely than pre-65 death), LTC. Accidental results standard (modern) vs accidental means (obsolete). Indemnity (DI) vs reimbursement (medical) vs service (HMO). Exam triggers §22 · unlimited self-interest · creditor cap · inception timing · consent · STOLI void · treaty/facultative · morale≠moral · 6 tests · STARR. Trap pairs — answer-splitting distinctions If the question says… The answer turns on ------ "Bet on a stranger's life" Wager — void; no insurable interest "Divorced, still owns policy" Inception timing — collects "Beneficiary lacks interest" Irrelevant — owner needed it "Coverage for casino losses" Speculative risk — uninsurable "Forgot to lock up because insured" Morale (not moral) hazard "Lied on the application" Moral hazard → concealment doctrine "Small pool of mixed risks" Homogeneity/large-numbers failure "Sick people flock to buy" Adverse selection "Insurer's insurer fails" Ceding insurer still owes insured "Employer pays own claims" Retention/self-insurance (+stop-loss) Worked

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California Life and Health Insurance Exam Prep

Course FAQ

What will California Life and Health Insurance Exam Prep cover?

The planned syllabus covers policy concepts, California rules, ethics, and licensing questions with California-specific explanations and practical applications.

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