LIFE, ACCIDENT AND HEALTH OR SICKNESS EXAMINATION
LATEST ACTUAL EXAM
what is meant by referring to an insurance policy as a unilateral contract? - ANSWER:
Only one party makes a legally enforceable promise.
When must insurance records of insurance agents and brokers be made available to
the insurance commissioner? - ANSWER: At all times.
Any situation that presents the possibility of a loss is known as? - ANSWER: a loss
exposure.
Which of the following information is not required to be communicated in a Life
insurance contract? - ANSWER: Personal Judgement
the direct distribution of insurance utilizes all of the following to mote the sale of
insurance Except? - ANSWER: Telephone call from an agent.
A contract in which one party promises to indemnify another against loss that arises
from an unknown event is - ANSWER: an insurance policy.
All of the occurrences listed below are examples of an insurable event as defined by
the California Insurance code EXCEPT? - ANSWER: an insured suffers a financial loss
in the state lottery.
all of the following statements about aleatory contracts are true EXCEPT? - ANSWER:
the insured and insurer contribute equally to the contract.
all of the following would be considered unfair trade practices EXCEPT? - ANSWER:
committing any act of discrimination whether it be deemed fair or unfair.
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? - ANSWER: Mary Brown Insurance Services.
A contract of indemnity is one in which? - ANSWER: one party is restored to the
same financial position the party was in before the loss occurred.
In insurance terminology, "indemnity means? - ANSWER: to make whole.
As defined in the California insurance Code, "insurance" is a? - ANSWER: Contract
,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? - ANSWER: A
misdemeanor.
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? - ANSWER: fiduciary
which of the following statements regarding risk is TRUE? - ANSWER: Only pure risks
are insurable.
the purchase of an insurance policy may accomplish all of the following Except? -
ANSWER: the elimination of risk
Insureds are entitled to recover an amount NOT greater than the amount of their
loss under the principle of - ANSWER: Indemnity.
What rule is used to determine the importance of a representation? - ANSWER: The
materiality of concealment.
The required contents of a policy include all of the following EXCEPT? - ANSWER: The
probability of loss
All of the following are characteristics of reinsurance EXCEPT ? - ANSWER: Increases
the unearned premium reserve
According to the California code, an insurance policy must specify all of the Following
Except? - ANSWER: the financial rating of the insurer
all of the following qualify as "background information" as defined in section 1729.2
of the California Insurance Code, Except? - ANSWER: misdemeanor charges filed, not
resulting in a conviction.
Loss retention is an effective risk management technique when all of the following
conditions exist EXCEPT the - ANSWER: probability of loss is unknown.
a situation in which there is a possibility of loss or a gain is a - ANSWER: speculative
risk
Why is having a large number of similar exposure units important to insurers? -
ANSWER: the greater the number insured, the more accurately the insurer can
predict losses and set appropriate premiums.
all of the following are benefits of insurance Except it ? - ANSWER: eliminates
fraudulent losses.
, who are members of the Medical information Bureau? - ANSWER: Life and Health
insurers
the process by which an insurer decides whether to issue requested insurance is
called? - ANSWER: underwriting
Unless it is merely a statement of an expectation or a belief, a representation as to
the future is considered which of the following? - ANSWER: Promise
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 -
ANSWER: by interview appointment with the agent of record.
what is the definition of premium? - ANSWER: Money an insured pays an insurer to
obtain the benefits provided in the policy.
what is the goal of the underwriting process? - ANSWER: to avoid selecting a
disproportionate number of bad risk.
Insurer policy expenses include all of the following EXCEPT - ANSWER: premiums
unintentional concealment entitles the injured party to which course of action, if
any? - ANSWER: rescission of the contract.
Making an insured whole by restoring them to the same condition as before a loss is
an example of - ANSWER: the principles of indemnity.
Risk can be defined as all of the following EXCEPT - ANSWER: the cause of loss
which of the following is a requirement of a contract - ANSWER: there must be an
offer acceptance of the contract terms.
Moral hazard can be defined as the increase - ANSWER: chance of a loss occurring
due to an insured's dishonest tendencies
according to the california insurance code, the commissioner can disapprove a
licensee's request to use a fictitious name for any of the following reasons except
that the name - ANSWER: name is the licensee's actual name.
it is considered an unfair method of competition for an agent to advertise that the
insurer the gent is appointed with is - ANSWER: a member of the Insurance
guarantee association.
all of the following are requirements of a contract except? - ANSWER: there must be
equal consideration between the parties.
LATEST ACTUAL EXAM
what is meant by referring to an insurance policy as a unilateral contract? - ANSWER:
Only one party makes a legally enforceable promise.
When must insurance records of insurance agents and brokers be made available to
the insurance commissioner? - ANSWER: At all times.
Any situation that presents the possibility of a loss is known as? - ANSWER: a loss
exposure.
Which of the following information is not required to be communicated in a Life
insurance contract? - ANSWER: Personal Judgement
the direct distribution of insurance utilizes all of the following to mote the sale of
insurance Except? - ANSWER: Telephone call from an agent.
A contract in which one party promises to indemnify another against loss that arises
from an unknown event is - ANSWER: an insurance policy.
All of the occurrences listed below are examples of an insurable event as defined by
the California Insurance code EXCEPT? - ANSWER: an insured suffers a financial loss
in the state lottery.
all of the following statements about aleatory contracts are true EXCEPT? - ANSWER:
the insured and insurer contribute equally to the contract.
all of the following would be considered unfair trade practices EXCEPT? - ANSWER:
committing any act of discrimination whether it be deemed fair or unfair.
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? - ANSWER: Mary Brown Insurance Services.
A contract of indemnity is one in which? - ANSWER: one party is restored to the
same financial position the party was in before the loss occurred.
In insurance terminology, "indemnity means? - ANSWER: to make whole.
As defined in the California insurance Code, "insurance" is a? - ANSWER: Contract
,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? - ANSWER: A
misdemeanor.
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? - ANSWER: fiduciary
which of the following statements regarding risk is TRUE? - ANSWER: Only pure risks
are insurable.
the purchase of an insurance policy may accomplish all of the following Except? -
ANSWER: the elimination of risk
Insureds are entitled to recover an amount NOT greater than the amount of their
loss under the principle of - ANSWER: Indemnity.
What rule is used to determine the importance of a representation? - ANSWER: The
materiality of concealment.
The required contents of a policy include all of the following EXCEPT? - ANSWER: The
probability of loss
All of the following are characteristics of reinsurance EXCEPT ? - ANSWER: Increases
the unearned premium reserve
According to the California code, an insurance policy must specify all of the Following
Except? - ANSWER: the financial rating of the insurer
all of the following qualify as "background information" as defined in section 1729.2
of the California Insurance Code, Except? - ANSWER: misdemeanor charges filed, not
resulting in a conviction.
Loss retention is an effective risk management technique when all of the following
conditions exist EXCEPT the - ANSWER: probability of loss is unknown.
a situation in which there is a possibility of loss or a gain is a - ANSWER: speculative
risk
Why is having a large number of similar exposure units important to insurers? -
ANSWER: the greater the number insured, the more accurately the insurer can
predict losses and set appropriate premiums.
all of the following are benefits of insurance Except it ? - ANSWER: eliminates
fraudulent losses.
, who are members of the Medical information Bureau? - ANSWER: Life and Health
insurers
the process by which an insurer decides whether to issue requested insurance is
called? - ANSWER: underwriting
Unless it is merely a statement of an expectation or a belief, a representation as to
the future is considered which of the following? - ANSWER: Promise
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 -
ANSWER: by interview appointment with the agent of record.
what is the definition of premium? - ANSWER: Money an insured pays an insurer to
obtain the benefits provided in the policy.
what is the goal of the underwriting process? - ANSWER: to avoid selecting a
disproportionate number of bad risk.
Insurer policy expenses include all of the following EXCEPT - ANSWER: premiums
unintentional concealment entitles the injured party to which course of action, if
any? - ANSWER: rescission of the contract.
Making an insured whole by restoring them to the same condition as before a loss is
an example of - ANSWER: the principles of indemnity.
Risk can be defined as all of the following EXCEPT - ANSWER: the cause of loss
which of the following is a requirement of a contract - ANSWER: there must be an
offer acceptance of the contract terms.
Moral hazard can be defined as the increase - ANSWER: chance of a loss occurring
due to an insured's dishonest tendencies
according to the california insurance code, the commissioner can disapprove a
licensee's request to use a fictitious name for any of the following reasons except
that the name - ANSWER: name is the licensee's actual name.
it is considered an unfair method of competition for an agent to advertise that the
insurer the gent is appointed with is - ANSWER: a member of the Insurance
guarantee association.
all of the following are requirements of a contract except? - ANSWER: there must be
equal consideration between the parties.
