CA Life and Health Licensing Exam Questions with
Answers
1.What is meant by referring to an insurance policy as a unilateral contract:
Only one party makes a legally enforceable promise.
2.When must insurance records of insurance agents and brokers be
made available to the Insurance Commissioner?: At all times
3.Any situation that presents the possibility of a loss is known as: a
loss exposure
4.Which of the following information is not required to be communicated in
a Life insurance contract?: Personal Judgement
5.The direct distribution of insurance utilizes all of the following to
promote the sale of insurance EXCEPT: telephone call from an agent
6.A contract in which one party promises to indemnify another against
loss that arises from an unknown event is: an insurance policy.
7.All of the occurrences listed below are examples of an insurable event as
defined by the California Insurance Code EXCEPT: an insured suffers a
financial loss in the state lottery
,8.All of the following statements about aleatory contracts are true EXCEPT:
the insured and insurer contribute equally to the contract.
9.All of the following would be considered unfair trade practices EXCEPT: -
committing any act of discrimination whether it be deemed fair or unfair
10.As authorized by the California Insurance Code, the Insurance Commis-
sioner 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: Mary Brown
Insurance Services.
11.A contract of indemnity is one in which: one party is restored to the
same financial position the party was in before the loss occurred.
12.In insurance terminology, "indemnity" means: make whole
13.As defined in the California insurance Code, "insurance" is a: contract
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
exe- cuted?: a misdemeanor
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?: Fiduciary
,16.Which of the following statements regarding risk is TRUE?: Only pure
risks are insurable.
17.he purchase of an insurance policy may accomplish all of the following
for the insured EXCEPT: the elimination of risk.
18.Insureds are entitled to recover an amount NOT greater than the
amount of their loss under the principle of: indemnity
19.What rule is used to determine the importance of a representation?:
The materiality of concealment.
20.The required contents of a policy include all of the following EXCEPT:
the probability of loss
21.All of the following are characteristics of reinsurance EXCEPT it:
increases the unearned premium reserve.
22.According to the California Insurance Code, an insurance policy
must specify all of the following EXCEPT the: financial rating of the
insurer.
23.All of the following qualify as "background information" as defined in
Sec- tion 1729.2 of the California Insurance Code, EXCEPT: misdemeanor
charges filed, not resulting in a conviction.
24.Loss retention is an effective risk management technique when all of
, the following conditions exist EXCEPT the: probability of loss is unknown.
25.A situation in which there is a possibility of loss or a gain is a:
speculative risk.
26.Why is having a large number of similar exposure units important to
insurers?: The greater the number insured, the more accurately the
insurer can predict losses and set appropriate premiums
27.All of the following are benefits of insurance EXCEPT it-: eliminates
fraudu- lent losses.
28.Who are members of the Medical information Bureau?: Life and
health insurers.
29.The process by which an insurer decides whether to issue
requested insurance is called -: underwriting
30.Unless it is merely a statement of an expectation or belief, a
representation as to the future is considered which of the following:
Promise
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: by interview appointment with the agent of
record.
Answers
1.What is meant by referring to an insurance policy as a unilateral contract:
Only one party makes a legally enforceable promise.
2.When must insurance records of insurance agents and brokers be
made available to the Insurance Commissioner?: At all times
3.Any situation that presents the possibility of a loss is known as: a
loss exposure
4.Which of the following information is not required to be communicated in
a Life insurance contract?: Personal Judgement
5.The direct distribution of insurance utilizes all of the following to
promote the sale of insurance EXCEPT: telephone call from an agent
6.A contract in which one party promises to indemnify another against
loss that arises from an unknown event is: an insurance policy.
7.All of the occurrences listed below are examples of an insurable event as
defined by the California Insurance Code EXCEPT: an insured suffers a
financial loss in the state lottery
,8.All of the following statements about aleatory contracts are true EXCEPT:
the insured and insurer contribute equally to the contract.
9.All of the following would be considered unfair trade practices EXCEPT: -
committing any act of discrimination whether it be deemed fair or unfair
10.As authorized by the California Insurance Code, the Insurance Commis-
sioner 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: Mary Brown
Insurance Services.
11.A contract of indemnity is one in which: one party is restored to the
same financial position the party was in before the loss occurred.
12.In insurance terminology, "indemnity" means: make whole
13.As defined in the California insurance Code, "insurance" is a: contract
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
exe- cuted?: a misdemeanor
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?: Fiduciary
,16.Which of the following statements regarding risk is TRUE?: Only pure
risks are insurable.
17.he purchase of an insurance policy may accomplish all of the following
for the insured EXCEPT: the elimination of risk.
18.Insureds are entitled to recover an amount NOT greater than the
amount of their loss under the principle of: indemnity
19.What rule is used to determine the importance of a representation?:
The materiality of concealment.
20.The required contents of a policy include all of the following EXCEPT:
the probability of loss
21.All of the following are characteristics of reinsurance EXCEPT it:
increases the unearned premium reserve.
22.According to the California Insurance Code, an insurance policy
must specify all of the following EXCEPT the: financial rating of the
insurer.
23.All of the following qualify as "background information" as defined in
Sec- tion 1729.2 of the California Insurance Code, EXCEPT: misdemeanor
charges filed, not resulting in a conviction.
24.Loss retention is an effective risk management technique when all of
, the following conditions exist EXCEPT the: probability of loss is unknown.
25.A situation in which there is a possibility of loss or a gain is a:
speculative risk.
26.Why is having a large number of similar exposure units important to
insurers?: The greater the number insured, the more accurately the
insurer can predict losses and set appropriate premiums
27.All of the following are benefits of insurance EXCEPT it-: eliminates
fraudu- lent losses.
28.Who are members of the Medical information Bureau?: Life and
health insurers.
29.The process by which an insurer decides whether to issue
requested insurance is called -: underwriting
30.Unless it is merely a statement of an expectation or belief, a
representation as to the future is considered which of the following:
Promise
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: by interview appointment with the agent of
record.
