Exam Fx Ca life and Health EXAM Questions
and Answers (A+ Solution guide) (2026)
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Terms in this set (361)
Insurance Contract whereby one undertakes to indemnify
another against loss, damage, or liabilty arising
from a unknown event.
Insurer Any person capable of making a contract;
subject to restrictions imposed by the CA
insurance code.
Speculative risk Chance of loss and potential for gain. This risk is
not insurable.
Hazard Increase the risk.
Law of Large numbers The more similar risks the better they can guess
approx. how many losses they have in a given
time period.
Loss exposure Situation the presents the possibility of a loss
Doctrine of upmost good faith That all parities to the contract can rely upon
states statements of other parties.
, Policy Written instrument in witch a contract is set forth
Premium Amount insured paid to the insurer for coverage.
Rate Price of insurance for each exposure unit
Rate Cost per exposure unit
How to determine the amount the Multiply the rate by the number of exposure units
insured will pay purchased.
express warranty Statement of fact in a policy of a matter relating
to the person/thing insured
Warranty May be expressed or applied
Implied warranty Representation in an insurance contract
Representation pt1 May be oral /written may be made @ time
of/before the insurance policy
Representation is false when Facts fail to correspond with its stipulations
False representation on a signed May subject the insured to perjury
claim
Concealment Party fails to communicate that witch a party
knows and ought to communicate so the other
party can make a sound decision
Concealment intentional / Entitles the injured party to rescind the contract.
unintentional
and Answers (A+ Solution guide) (2026)
Questions And Answers Solved 100% Correct!!
Save
Terms in this set (361)
Insurance Contract whereby one undertakes to indemnify
another against loss, damage, or liabilty arising
from a unknown event.
Insurer Any person capable of making a contract;
subject to restrictions imposed by the CA
insurance code.
Speculative risk Chance of loss and potential for gain. This risk is
not insurable.
Hazard Increase the risk.
Law of Large numbers The more similar risks the better they can guess
approx. how many losses they have in a given
time period.
Loss exposure Situation the presents the possibility of a loss
Doctrine of upmost good faith That all parities to the contract can rely upon
states statements of other parties.
, Policy Written instrument in witch a contract is set forth
Premium Amount insured paid to the insurer for coverage.
Rate Price of insurance for each exposure unit
Rate Cost per exposure unit
How to determine the amount the Multiply the rate by the number of exposure units
insured will pay purchased.
express warranty Statement of fact in a policy of a matter relating
to the person/thing insured
Warranty May be expressed or applied
Implied warranty Representation in an insurance contract
Representation pt1 May be oral /written may be made @ time
of/before the insurance policy
Representation is false when Facts fail to correspond with its stipulations
False representation on a signed May subject the insured to perjury
claim
Concealment Party fails to communicate that witch a party
knows and ought to communicate so the other
party can make a sound decision
Concealment intentional / Entitles the injured party to rescind the contract.
unintentional
