CALIFORNIA LIFE INSURANCE EXAM 2026 POLICY SCRIPT SOLVED QUESTIONS VERIFIED ANSWERS A+

CALIFORNIA LIFE INSURANCE
EXAM 2026 POLICY SCRIPT SOLVED
QUESTIONS VERIFIED ANSWERS A+

◉ Risk.
Answer: Uncertainty of a loss.


◉ Pure risk.
Answer: Insurable because it involves a chance of loss only.


◉ Speculative risk.
Answer: Not insurable because it involves a chance of loss or gain, i.e.
Gambling.


◉ Hazards.
Answer: Events or conditions that increase the chance of a loss.


◉ Physical hazard.
Answer: A physical condition: medical history, blindness, deafness.


◉ Moral hazard.
Answer: A lie.

, ◉ Morale hazard.
Answer: Doing really unsafe things.


◉ Peril.
Answer: The cause of a loss: fire, accident, flood.


◉ Law of Large Numbers.
Answer: Predicts the number of deaths that should occur within a similar
group of people; the larger the number, the more accurate the prediction.


◉ Captive/ Career agent.
Answer: Works for one company and sells only their products.


◉ Independent agent.
Answer: Works for self and sells products for many companies.


◉ Domestic agent.
Answer: Incorporated in the state they are doing business (i.e.
California).


◉ Foreign agent.
Answer: Incorporated in another state (i.e. Oregon or Arizona) but doing
business in California.