CA Life Insurance Exam Questions and Answers
100% Pass
only one party makes a legally enforceable promise -
ANSWER--What is meant by referring to an insurance policy
as a unilateral contract?
at all times - ANSWER--When must insurance records of
insurance agents and brokers be made available to the
Insurance Commissioner?
a loss exposure - ANSWER--Any situation that presents the
possibility of a loss is known as
personal judgement - ANSWER--Which of the following
information is not required to be communicated in a Life
Insurance contract?
telephone call from the agent - ANSWER--The direct
distribution of insurance utilizes all of the following to promote
the sale of insurance EXCEPT
an insurance policy - ANSWER--A contract in which one party
promises to indemnify another against loss that arises from an
unknown event is
an insured suffers a financial loss in the state lottery -
ANSWER--All of the occurrences listed below are examples of
, CA Life Insurance Exam Questions and Answers
100% Pass
an insurable event as defined by the California Insurance Code
EXCEPT
the insured and insurer contribute equally to the contract -
ANSWER--All of the following statements about aleatory
contracts are true EXCEPT
committing any act of discrimination whether it be deemed fair
or unfair - ANSWER--All of the following would be considered
unfair trade practices EXCEPT
Mary Brown Insurance Services - ANSWER--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?
one party is restored to the same financial position the party
was in before the loss occurred - ANSWER--A contract of
indemnity is one in which
make whole - ANSWER--In insurance terminology,
"indemnity" means
, CA Life Insurance Exam Questions and Answers
100% Pass
contract - ANSWER--As defined in the California Insurance
Code, "insurance" is a
a misdemeanor - ANSWER--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?
fiduciary - ANSWER--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?
only pure risks are insurable - ANSWER--Which of the
following statements regarding risk is TRUE?
the elimination of risk - ANSWER--The purchase of an
insurance policy may accomplish all of the following for the
insured EXCEPT
indemnity - ANSWER--Insureds are entitled to recover an
amount NOT greater than the amount of their loss under the
principle of
the materiality of concealment - ANSWER--What rule is used
to determine the importance of a representation?
, CA Life Insurance Exam Questions and Answers
100% Pass
the probability of loss - ANSWER--The required contents of a
policy include all of the following EXCEPT
it increases the unearned premium reserve - ANSWER--All of
the following are characteristics of reinsurance EXCEPT
the financial rating of the insurer - ANSWER--According to the
California Insurance Code, an insurance policy must specify all
of the following EXCEPT
misdemeanor charges filed, not resulting in a conviction -
ANSWER--All of the following qualify as "background
information" as defined in Section 1729.2 of the California
Insurance Code, EXCEPT
the probability of loss is unknown - ANSWER--Loss retention
is an effective risk management technique when all of the
following conditions exist EXCEPT
speculative risk - ANSWER--A situation in which there is a
possibility of loss or a gain is a
the greater the number insured, the more accurately the
insurer can predict losses and set appropriate premiums -
100% Pass
only one party makes a legally enforceable promise -
ANSWER--What is meant by referring to an insurance policy
as a unilateral contract?
at all times - ANSWER--When must insurance records of
insurance agents and brokers be made available to the
Insurance Commissioner?
a loss exposure - ANSWER--Any situation that presents the
possibility of a loss is known as
personal judgement - ANSWER--Which of the following
information is not required to be communicated in a Life
Insurance contract?
telephone call from the agent - ANSWER--The direct
distribution of insurance utilizes all of the following to promote
the sale of insurance EXCEPT
an insurance policy - ANSWER--A contract in which one party
promises to indemnify another against loss that arises from an
unknown event is
an insured suffers a financial loss in the state lottery -
ANSWER--All of the occurrences listed below are examples of
, CA Life Insurance Exam Questions and Answers
100% Pass
an insurable event as defined by the California Insurance Code
EXCEPT
the insured and insurer contribute equally to the contract -
ANSWER--All of the following statements about aleatory
contracts are true EXCEPT
committing any act of discrimination whether it be deemed fair
or unfair - ANSWER--All of the following would be considered
unfair trade practices EXCEPT
Mary Brown Insurance Services - ANSWER--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?
one party is restored to the same financial position the party
was in before the loss occurred - ANSWER--A contract of
indemnity is one in which
make whole - ANSWER--In insurance terminology,
"indemnity" means
, CA Life Insurance Exam Questions and Answers
100% Pass
contract - ANSWER--As defined in the California Insurance
Code, "insurance" is a
a misdemeanor - ANSWER--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?
fiduciary - ANSWER--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?
only pure risks are insurable - ANSWER--Which of the
following statements regarding risk is TRUE?
the elimination of risk - ANSWER--The purchase of an
insurance policy may accomplish all of the following for the
insured EXCEPT
indemnity - ANSWER--Insureds are entitled to recover an
amount NOT greater than the amount of their loss under the
principle of
the materiality of concealment - ANSWER--What rule is used
to determine the importance of a representation?
, CA Life Insurance Exam Questions and Answers
100% Pass
the probability of loss - ANSWER--The required contents of a
policy include all of the following EXCEPT
it increases the unearned premium reserve - ANSWER--All of
the following are characteristics of reinsurance EXCEPT
the financial rating of the insurer - ANSWER--According to the
California Insurance Code, an insurance policy must specify all
of the following EXCEPT
misdemeanor charges filed, not resulting in a conviction -
ANSWER--All of the following qualify as "background
information" as defined in Section 1729.2 of the California
Insurance Code, EXCEPT
the probability of loss is unknown - ANSWER--Loss retention
is an effective risk management technique when all of the
following conditions exist EXCEPT
speculative risk - ANSWER--A situation in which there is a
possibility of loss or a gain is a
the greater the number insured, the more accurately the
insurer can predict losses and set appropriate premiums -
