12 - California Laws and Ethics Pertinent
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Questions
and Answers 100% Correct
Anyone employed in California to assist an insurance agent in transacting insurance is called an
insurance ✔✔solicitor
a life agent who has misappropriated fiduciary funds to his own use. What is Pete guilty of?
✔✔Theft
According to the California Insurance Code, what is "insurance"? ✔✔A contract
A person who asserts a right of recovery under an insurance policy is called ✔✔claimant
According to the California Insurance Code, what term is used to describe a fact so important it
could affect the policy premium? ✔✔Materiality
Why is a life insurance policy's delivery date important? ✔✔The free-look period begins on the
policy delivery date
What does the term "indemnity" mean as it pertains to insurance? ✔✔To make whole
Which of the following does the California Insurance Code NOT require an insurance policy to
specify? ✔✔Insurer's financial rating
, When handling premiums for an insured, an agent is acting in which capacity? ✔✔Fiduciary
What is required after a life agent sells an insurance policy to an applicant without being
appointed by the insurer? ✔✔Notice of appointment must be submitted to the Commissioner
An agent's attempt to stop the replacement of an existing life insurance policy is known as
✔✔conservation
Under the California Insurance Code, a licensee's license number must be printed at what size on
all price quotes, business cards, and printed material? ✔✔The same size print as the licensee's
phone number, fax number or address
Life insurance surplus must be distributed to policyowners at what frequency? ✔✔Annually
All of these are reasons the Commissioner may disapprove a licensee's request to use a fictitious
name EXCEPT ✔✔The name is the licensee's actual name
Which of the following does the California Department of Insurance (CDI) have NO jurisdiction
over? ✔✔Medicare
Which word implies permissiveness according to the California Insurance Code? ✔✔May
Any changes in background information that occur after a producer application has been
submitted or a license has been issued MUST be reported to the Insurance Commissioner within
✔✔30 Days
The California Insurance Code defines "policy" as a(n) ✔✔written contract
According to the California Insurance Code, which of the following is NOT an example of an
insurable event? ✔✔An insured suffers a financial loss in the state lottery
to Insurance
Questions
and Answers 100% Correct
Anyone employed in California to assist an insurance agent in transacting insurance is called an
insurance ✔✔solicitor
a life agent who has misappropriated fiduciary funds to his own use. What is Pete guilty of?
✔✔Theft
According to the California Insurance Code, what is "insurance"? ✔✔A contract
A person who asserts a right of recovery under an insurance policy is called ✔✔claimant
According to the California Insurance Code, what term is used to describe a fact so important it
could affect the policy premium? ✔✔Materiality
Why is a life insurance policy's delivery date important? ✔✔The free-look period begins on the
policy delivery date
What does the term "indemnity" mean as it pertains to insurance? ✔✔To make whole
Which of the following does the California Insurance Code NOT require an insurance policy to
specify? ✔✔Insurer's financial rating
, When handling premiums for an insured, an agent is acting in which capacity? ✔✔Fiduciary
What is required after a life agent sells an insurance policy to an applicant without being
appointed by the insurer? ✔✔Notice of appointment must be submitted to the Commissioner
An agent's attempt to stop the replacement of an existing life insurance policy is known as
✔✔conservation
Under the California Insurance Code, a licensee's license number must be printed at what size on
all price quotes, business cards, and printed material? ✔✔The same size print as the licensee's
phone number, fax number or address
Life insurance surplus must be distributed to policyowners at what frequency? ✔✔Annually
All of these are reasons the Commissioner may disapprove a licensee's request to use a fictitious
name EXCEPT ✔✔The name is the licensee's actual name
Which of the following does the California Department of Insurance (CDI) have NO jurisdiction
over? ✔✔Medicare
Which word implies permissiveness according to the California Insurance Code? ✔✔May
Any changes in background information that occur after a producer application has been
submitted or a license has been issued MUST be reported to the Insurance Commissioner within
✔✔30 Days
The California Insurance Code defines "policy" as a(n) ✔✔written contract
According to the California Insurance Code, which of the following is NOT an example of an
insurable event? ✔✔An insured suffers a financial loss in the state lottery
