CA PSI Site - Life, Accident and Health Agent
Examination (Life Agent) Exam Questions and Answers
(Latest update 2023
A third party claimant means - ANSWER-A third party claimant means any person
asserting a claim against any person or the interest insured under an insurance
policy.
The Law of Large Numbers states - ANSWER-The Law of Large Numbers states
that the more similar risks the insurance company combines together, the better
they can guess approximately how many losses they will have in a given time
period.
A speculative risk is a - ANSWER-A speculative risk is a risk situation that includes
a chance of loss and a potential for gain. Speculative risks are not insurable.
A hazard is - ANSWER-A hazard is something that increases the risk.
The doctrine of utmost good faith states - ANSWER-The doctrine of utmost good
faith states that all parties to the contract can rely upon the statements of the
other party.
An insurer organized in California and selling in California is considered to be a -
ANSWER-An insurer organized in California and selling in California is considered
to be a "domestic" insurer in California.
An insurance company that has enough reserves to pay for all its liabilities is
referred to as - ANSWER-An insurance company that has enough reserves to pay
for all its liabilities is referred to as a "solvent" insurer.
,CA PSI Site - Life, Accident and Health Agent
Examination (Life Agent) Exam Questions and Answers
(Latest update 2023
The State Insurance Guarantee Fund provides - ANSWER-The State Insurance
Guarantee Fund provides protection to policyholders whose insurer becomes
insolvent (financially impaired). This fund only covers member insurers (licensed
insurance companies).
An insurance company that is based in Canada and doing business in California is
an - ANSWER-An insurance company that is based in Canada and doing business
in California is an "alien" insurer.
If the insurer discovers the insured has violated a material warranty they can -
ANSWER-If the insurer discovers the insured has violated a material warranty they
can rescind the contract (void the policy).
An intentional concealment entitles the injured party - ANSWER-An intentional
concealment entitles the injured party the option to rescind the contract.
Neither party to a contract of insurance is bound to - ANSWER-Neither party to a
contract of insurance is bound to communicate, even upon inquiry, information of
his own judgment upon the matters in question.
Providing free insurance coverage in connection with the sale of services as an
inducement for completing the transaction is not - ANSWER-Providing free
insurance coverage in connection with the sale of services as an inducement for
completing the transaction is not legal.
, CA PSI Site - Life, Accident and Health Agent
Examination (Life Agent) Exam Questions and Answers
(Latest update 2023
The following information does not need to be communicated in a contract: -
ANSWER-The following information does not need to be communicated in a
contract:
o known information
o information that should be known
o information which the other party waives
o information that is not material to the risk
WHAT QUALIFIES AS AN IMPLIED WARRANTY? - ANSWER-A representation in an
insurance contract qualifies as an implied warranty.
The materiality of concealment is the rule used to - ANSWER-The materiality of
concealment is the rule used to determine the importance of a
misrepresentation.
A representation is false when the facts fail to correspond with its - ANSWER-A
representation is false when the facts fail to correspond with its assertions or
stipulations.
The financial rating of the insurer is not required to be - ANSWER-The financial
rating of the insurer is not required to be specified in the insurance policy.
Examination (Life Agent) Exam Questions and Answers
(Latest update 2023
A third party claimant means - ANSWER-A third party claimant means any person
asserting a claim against any person or the interest insured under an insurance
policy.
The Law of Large Numbers states - ANSWER-The Law of Large Numbers states
that the more similar risks the insurance company combines together, the better
they can guess approximately how many losses they will have in a given time
period.
A speculative risk is a - ANSWER-A speculative risk is a risk situation that includes
a chance of loss and a potential for gain. Speculative risks are not insurable.
A hazard is - ANSWER-A hazard is something that increases the risk.
The doctrine of utmost good faith states - ANSWER-The doctrine of utmost good
faith states that all parties to the contract can rely upon the statements of the
other party.
An insurer organized in California and selling in California is considered to be a -
ANSWER-An insurer organized in California and selling in California is considered
to be a "domestic" insurer in California.
An insurance company that has enough reserves to pay for all its liabilities is
referred to as - ANSWER-An insurance company that has enough reserves to pay
for all its liabilities is referred to as a "solvent" insurer.
,CA PSI Site - Life, Accident and Health Agent
Examination (Life Agent) Exam Questions and Answers
(Latest update 2023
The State Insurance Guarantee Fund provides - ANSWER-The State Insurance
Guarantee Fund provides protection to policyholders whose insurer becomes
insolvent (financially impaired). This fund only covers member insurers (licensed
insurance companies).
An insurance company that is based in Canada and doing business in California is
an - ANSWER-An insurance company that is based in Canada and doing business
in California is an "alien" insurer.
If the insurer discovers the insured has violated a material warranty they can -
ANSWER-If the insurer discovers the insured has violated a material warranty they
can rescind the contract (void the policy).
An intentional concealment entitles the injured party - ANSWER-An intentional
concealment entitles the injured party the option to rescind the contract.
Neither party to a contract of insurance is bound to - ANSWER-Neither party to a
contract of insurance is bound to communicate, even upon inquiry, information of
his own judgment upon the matters in question.
Providing free insurance coverage in connection with the sale of services as an
inducement for completing the transaction is not - ANSWER-Providing free
insurance coverage in connection with the sale of services as an inducement for
completing the transaction is not legal.
, CA PSI Site - Life, Accident and Health Agent
Examination (Life Agent) Exam Questions and Answers
(Latest update 2023
The following information does not need to be communicated in a contract: -
ANSWER-The following information does not need to be communicated in a
contract:
o known information
o information that should be known
o information which the other party waives
o information that is not material to the risk
WHAT QUALIFIES AS AN IMPLIED WARRANTY? - ANSWER-A representation in an
insurance contract qualifies as an implied warranty.
The materiality of concealment is the rule used to - ANSWER-The materiality of
concealment is the rule used to determine the importance of a
misrepresentation.
A representation is false when the facts fail to correspond with its - ANSWER-A
representation is false when the facts fail to correspond with its assertions or
stipulations.
The financial rating of the insurer is not required to be - ANSWER-The financial
rating of the insurer is not required to be specified in the insurance policy.
