Bonus Exam Questions
Exam Cram
Q. 1--What is meant by referring to an insurance policy as a
unilateral contract?
A. Only one party makes a legally enforceable promise.
Q. 2-- When must insurance records of insurance agents and brokers
be made
available to the Insurance Commissioner?
A. At all times.
Q. 3-- Any situation that presents the possibility of a loss is known as
A. a loss exposure
Q.4-- Which of the following information is not required to be
communicated?
in a Life insurance contract?
A. Personal judgment.
Q. 5-- The direct distribution of insurance utilizes all of the
following to promote
the sale of insurance EXCEPT
A. telephone call from an agent.
Q. 6--A contract in which one party promises to indemnify another
against loss
That arises from an unknown event is
A. An insurance policy.
Q. 7--All of the occurrences listed below are examples of an insurable
event as
defined by the California Insurance Code EXCEPT
A. an insured suffers a financial loss in the state lottery
Q. 8--All of the following statements about aleatory contracts are
true EXCEPT
,A. the insured and insurer contribute equally to the contract.
Q.9--All of the following would be considered unfair trade
practices EXCEPT
A. committing any act of discrimination whether it be deemed fair or
unfair.
Q. 10--As authorized by the California Insurance Code, the
Insurance Commissioner has provided standards for names
used by life
insurance
Agents. Under these standards which, if any, of the following
are
automatically acceptable for Mary Brown, a holder of the CLU
designation?
A. Mary Brown insurance Services.
Q.11-- A contract of indemnity is one in which
A. One party is restored to the same financial position the party was
in
Before the loss occurred.
Q.12--In insurance terminology, “indemnity” means
A. make whole.
Q.13-- As defined in the California insurance Code, “insurance” is a
A. Contract.
Q. 14--What would a person be guilty of who refuses to deliver any
books,
Records, or assets to the commissioner once a seizure order has
been
executed?
A. A misdemeanor
Q.15--An agent who is acting as an insurance agent, broker,
solicitor, life
Agent, accident and health, or bail agent acts in which capacity
when
Handling premiums or return premiums for an insured?
A. Fiduciary
,Q. 16--Which of the following statements regarding risk is TRUE?
A. Only pure risks are insurable.;/
Q.17--The purchase of an insurance policy may accomplish all of the
following
for the insured EXCEPT
A. The elimination of risk.
Q. -- 18.Insureds are entitled to recover an amount NOT greater
than the
Amount of their loss under the principle of
A. Indemnity.
Q.--19.What rule is used to determine the importance of a
representation?
A. The materiality of concealment.
Q.20--The required contents of a policy include all of the following
EXCEPT
A. The probability of loss
Q.21--All of the following are characteristics of reinsurance EXCEPT it
A. Increases the unearned premium reserve.
Q.22--According to the California Insurance Code, an insurance
policy must
specify all of the following EXCEPT the
A. Financial rating of the
insurer. B.
Q.23--All of the following qualify as “background information” as
defined in
Section 1729.2 of the California Insurance Code, EXCEPT
A. Misdemeanor charges filed, not resulting in a conviction.
Q.24--Loss retention is an effective risk management technique when
all of the
following conditions exist EXCEPT the
A. probability of loss is unknown.
, Q.25--A situation in which there is a possibility of loss or a gain is a
A. Speculative risk.
Q. 26--Why is having a large number of similar exposure units
important to
insurers/
A. The greater the number insured, the more accurately the insurer
can
predict losses and set appropriate premiums.
Q.27--All of the following are benefits of insurance EXCEPT it
A. eliminates fraudulent losses.
Q.28--Who are members of the Medical information Bureau?
A. Life and health insurers.
Q.29--The process by which an insurer decides whether to issue
requested
Insurance is called
A. Underwriting.
Q.30-- Unless it is merely a statement of an expectation or belief, a
representation as to the future is considered which of the
following?
A. Promise
Q.31--Upon notification of a claim, a claimant must be given access to
the
California Fair Claims Settlement Practices resolution by all of
the following
means EXCEPT
A. By interview appointment with the agent of record.
Q.32-- What is the definition of premium?
A. Money an insured pays an insurer to obtain the benefits provided in
the
policy.
Q.33--What is the goal of the underwriting process?
A. To avoid selecting a disproportionate number of bad risks.
Q.32.Insurer policy expenses include all of the following EXCEPT
A. Premiums.
Q.--33.Unintentional concealment entitles the injured party to which
course of
action, if any?
Exam Cram
Q. 1--What is meant by referring to an insurance policy as a
unilateral contract?
A. Only one party makes a legally enforceable promise.
Q. 2-- When must insurance records of insurance agents and brokers
be made
available to the Insurance Commissioner?
A. At all times.
Q. 3-- Any situation that presents the possibility of a loss is known as
A. a loss exposure
Q.4-- Which of the following information is not required to be
communicated?
in a Life insurance contract?
A. Personal judgment.
Q. 5-- The direct distribution of insurance utilizes all of the
following to promote
the sale of insurance EXCEPT
A. telephone call from an agent.
Q. 6--A contract in which one party promises to indemnify another
against loss
That arises from an unknown event is
A. An insurance policy.
Q. 7--All of the occurrences listed below are examples of an insurable
event as
defined by the California Insurance Code EXCEPT
A. an insured suffers a financial loss in the state lottery
Q. 8--All of the following statements about aleatory contracts are
true EXCEPT
,A. the insured and insurer contribute equally to the contract.
Q.9--All of the following would be considered unfair trade
practices EXCEPT
A. committing any act of discrimination whether it be deemed fair or
unfair.
Q. 10--As authorized by the California Insurance Code, the
Insurance Commissioner has provided standards for names
used by life
insurance
Agents. Under these standards which, if any, of the following
are
automatically acceptable for Mary Brown, a holder of the CLU
designation?
A. Mary Brown insurance Services.
Q.11-- A contract of indemnity is one in which
A. One party is restored to the same financial position the party was
in
Before the loss occurred.
Q.12--In insurance terminology, “indemnity” means
A. make whole.
Q.13-- As defined in the California insurance Code, “insurance” is a
A. Contract.
Q. 14--What would a person be guilty of who refuses to deliver any
books,
Records, or assets to the commissioner once a seizure order has
been
executed?
A. A misdemeanor
Q.15--An agent who is acting as an insurance agent, broker,
solicitor, life
Agent, accident and health, or bail agent acts in which capacity
when
Handling premiums or return premiums for an insured?
A. Fiduciary
,Q. 16--Which of the following statements regarding risk is TRUE?
A. Only pure risks are insurable.;/
Q.17--The purchase of an insurance policy may accomplish all of the
following
for the insured EXCEPT
A. The elimination of risk.
Q. -- 18.Insureds are entitled to recover an amount NOT greater
than the
Amount of their loss under the principle of
A. Indemnity.
Q.--19.What rule is used to determine the importance of a
representation?
A. The materiality of concealment.
Q.20--The required contents of a policy include all of the following
EXCEPT
A. The probability of loss
Q.21--All of the following are characteristics of reinsurance EXCEPT it
A. Increases the unearned premium reserve.
Q.22--According to the California Insurance Code, an insurance
policy must
specify all of the following EXCEPT the
A. Financial rating of the
insurer. B.
Q.23--All of the following qualify as “background information” as
defined in
Section 1729.2 of the California Insurance Code, EXCEPT
A. Misdemeanor charges filed, not resulting in a conviction.
Q.24--Loss retention is an effective risk management technique when
all of the
following conditions exist EXCEPT the
A. probability of loss is unknown.
, Q.25--A situation in which there is a possibility of loss or a gain is a
A. Speculative risk.
Q. 26--Why is having a large number of similar exposure units
important to
insurers/
A. The greater the number insured, the more accurately the insurer
can
predict losses and set appropriate premiums.
Q.27--All of the following are benefits of insurance EXCEPT it
A. eliminates fraudulent losses.
Q.28--Who are members of the Medical information Bureau?
A. Life and health insurers.
Q.29--The process by which an insurer decides whether to issue
requested
Insurance is called
A. Underwriting.
Q.30-- Unless it is merely a statement of an expectation or belief, a
representation as to the future is considered which of the
following?
A. Promise
Q.31--Upon notification of a claim, a claimant must be given access to
the
California Fair Claims Settlement Practices resolution by all of
the following
means EXCEPT
A. By interview appointment with the agent of record.
Q.32-- What is the definition of premium?
A. Money an insured pays an insurer to obtain the benefits provided in
the
policy.
Q.33--What is the goal of the underwriting process?
A. To avoid selecting a disproportionate number of bad risks.
Q.32.Insurer policy expenses include all of the following EXCEPT
A. Premiums.
Q.--33.Unintentional concealment entitles the injured party to which
course of
action, if any?
