California Life Only Agent Exam with Questions and Answers

California Life Only Agent Exam with Questions and Answers Balancing poor risk with preferred risk, with the average or standard risk being in the middle is known as what? A. Distribution of Exposures B. Profitable Distribution of Exposures C. Retention D. Coverage Reduction ANSWER A. Distribution of Exposures _________________ contract involves the exchange of a premium for a promise, which means that the insurer is the only party making a legally enforceable promise to pay a claim. A. Unilateral B. Adhesion C. Aleatory D. Conditional ANSWER A. Unilateral Contract "Uni"lateral means One Party What is the term that describes balancing preferred risks with poor risks, and average risks in the middle? A. Distribution of Exposures B. Profitable Distribution of Exposures C. Coverage Reduction D. None of the above ANSWER A. Distribution of Exposures