POL California Life: The Insurance Marketplace Actual
Exam 2023 with complete solution
An independent agent may have contacts with which of the following?
More than one insurer
An exclusive agent...
Has a contract with one company
Which of the following persons represents several insurance companies but
owns the records of the policies sold?
Independent agent
An agent is a legal person who acts on the behalf of...
The principal
What is the term for a sales campaign conducted through the mail?
Direct-response
In which distribution system must the potential client take the initiative and
respond to an advertisement through a telephone or mail contract with the
insurer?
Direct response system
Which of the following would NOT be considered o from of direct response
marketing?
A sign in an insurer's office
When agents are acting within the scope of their contract, their actions will be
assumed to be the acts of the...
Insurer
What is the term for the entity that an agent represents regarding contractual
agreements with third parties?
Principal
According to the Law of Agency, a principal is represented by a/an...
Agent
Which of the following is NOT a responsibility of an insurance agent?
Underwriting the contract
If an insurance premium is paid by the policy-owner to the agent, and the agent
fails to remit that premium to the insurer, which of the following statements is
true?
The policy will not lapse since payment to the agent is the same as a payment to the
insurer.
An agent is acting ethically in all of the following situations EXCEPT...
Always representing the insured.
An insurance agent's responsibilities include all of the following EXCEPT...
Represent the client
In any case there is a controversy or dispute between the insurance company and
the insured, the soliciting agent is the agent of the...
Company
Which of the following are the authorities that an agent can hold?
Express and implied
, The requirement that agents not commingle insurance monies with their own
funds is known as...
Fiduciary responsibility
What documentation grants express authority to an agent?
Agent's contract with the principal
Which of the following is an example of an agent's fiduciary responsibilities?
Promptly forwarding premiums to the insurance company
Which of the following is an example of apparent authority of an agent appointed
by an insurer?
The agent accepts a premium payment after the end of the grace period.
Which authority is NOT stated in an agent's contract but is required for the agent
to conduct business?
Implied
The authority granted to an agent through the agent's contract is referred to as...
Express Authority
In insurance transactions, fiduciary responsibility means...
Handling insurer funds in a trust capacity
An agent accepts the premium payment 35 days after it is due, telling the insured
that there will not be a problem keeping the policy in force. This is an example of
what type of agent authority?
Apparent
The Code defines the term "transact" as all of the following EXCEPT...
Analyzing a contract of insurance
Transacting insurance without a license is considered a/an...
Misdemeanor
An insurance agent may NOT transact...
Life insurance
A person who transacts insurance business, other than life insurance, for
compensation from and on behalf of another person, but not on behalf of or as a
representative of an insurance company for which he has an appointment is
called...
In insurance broker
Which of the following is NOT a license in the state of California?
Life broker
All of the following are true about a Life Disability Analyst EXCEPT...
Preforms the same duties as a life agent
An agent has been hired by a local business-owner to determine what type of
personal and professional coverage he needs. The agent has determined the
business-owner's needs and recommended policies from 3 possible companies.
The agent does NOT have an agency contract with any of these companies. The
agent is acting as...
An insurance broker
Kelley is an "insurance agent" in the state of California. She is able to transact
business in all classes of insurance EXCEPT...
Life insurance
Which of the following is authorized to transact insurance on human lives?
Exam 2023 with complete solution
An independent agent may have contacts with which of the following?
More than one insurer
An exclusive agent...
Has a contract with one company
Which of the following persons represents several insurance companies but
owns the records of the policies sold?
Independent agent
An agent is a legal person who acts on the behalf of...
The principal
What is the term for a sales campaign conducted through the mail?
Direct-response
In which distribution system must the potential client take the initiative and
respond to an advertisement through a telephone or mail contract with the
insurer?
Direct response system
Which of the following would NOT be considered o from of direct response
marketing?
A sign in an insurer's office
When agents are acting within the scope of their contract, their actions will be
assumed to be the acts of the...
Insurer
What is the term for the entity that an agent represents regarding contractual
agreements with third parties?
Principal
According to the Law of Agency, a principal is represented by a/an...
Agent
Which of the following is NOT a responsibility of an insurance agent?
Underwriting the contract
If an insurance premium is paid by the policy-owner to the agent, and the agent
fails to remit that premium to the insurer, which of the following statements is
true?
The policy will not lapse since payment to the agent is the same as a payment to the
insurer.
An agent is acting ethically in all of the following situations EXCEPT...
Always representing the insured.
An insurance agent's responsibilities include all of the following EXCEPT...
Represent the client
In any case there is a controversy or dispute between the insurance company and
the insured, the soliciting agent is the agent of the...
Company
Which of the following are the authorities that an agent can hold?
Express and implied
, The requirement that agents not commingle insurance monies with their own
funds is known as...
Fiduciary responsibility
What documentation grants express authority to an agent?
Agent's contract with the principal
Which of the following is an example of an agent's fiduciary responsibilities?
Promptly forwarding premiums to the insurance company
Which of the following is an example of apparent authority of an agent appointed
by an insurer?
The agent accepts a premium payment after the end of the grace period.
Which authority is NOT stated in an agent's contract but is required for the agent
to conduct business?
Implied
The authority granted to an agent through the agent's contract is referred to as...
Express Authority
In insurance transactions, fiduciary responsibility means...
Handling insurer funds in a trust capacity
An agent accepts the premium payment 35 days after it is due, telling the insured
that there will not be a problem keeping the policy in force. This is an example of
what type of agent authority?
Apparent
The Code defines the term "transact" as all of the following EXCEPT...
Analyzing a contract of insurance
Transacting insurance without a license is considered a/an...
Misdemeanor
An insurance agent may NOT transact...
Life insurance
A person who transacts insurance business, other than life insurance, for
compensation from and on behalf of another person, but not on behalf of or as a
representative of an insurance company for which he has an appointment is
called...
In insurance broker
Which of the following is NOT a license in the state of California?
Life broker
All of the following are true about a Life Disability Analyst EXCEPT...
Preforms the same duties as a life agent
An agent has been hired by a local business-owner to determine what type of
personal and professional coverage he needs. The agent has determined the
business-owner's needs and recommended policies from 3 possible companies.
The agent does NOT have an agency contract with any of these companies. The
agent is acting as...
An insurance broker
Kelley is an "insurance agent" in the state of California. She is able to transact
business in all classes of insurance EXCEPT...
Life insurance
Which of the following is authorized to transact insurance on human lives?
