CA Life & Health Insurance Exam
Adverse selection - ANS-When risks with higher probability of loss are seeking insurance more
often than other risks, this is known as what?
agent or producer - ANS-According to the Law of Agency, a principal is represented by whom?
Agreement (offer and acceptance), consideration, competent parties, and legal purpose -
ANS-What are the four elements of an insurance contract?
Alien - ANS-What type of insurer is formed under the laws of another country?
An absolutely true statement upon which the validity of the insurance contract is based -
ANS-What is a warranty in an insurance contract?
authorized or admitted - ANS-If an insurer meets the state's financial requirements and is
approved to transact business in the state, it is considered what type of insurer?
Certificate of Authority - ANS-What document is required for an insurance company to transact
insurance?
Complete a new application or ask the applicant to initial correction on the original application -
ANS-When a change needs to be made on the application for insurance, which is the best
method for correcting the information?
Domestic, Foreign, and Alien - ANS-Insurers are classified according to their domicile. What are
the three types of insurers?
express, implied, apparent - ANS-What are the three types of agent authority?
Fiduciary - ANS-The requirement that agents must account for an promptly remit all insurance
funds collected is known as what type of agent responsibility?
Foreign - ANS-An insurance company is domiciled in California and transacts insurance in
Nevada. What is this insurer's classification in Nevada?
foreign - ANS-An insurance company that is formed under the laws of another state is known as
what type of insurer?
hazards - ANS-Conditions that increase the chance of a loss are known as what?
Adverse selection - ANS-When risks with higher probability of loss are seeking insurance more
often than other risks, this is known as what?
agent or producer - ANS-According to the Law of Agency, a principal is represented by whom?
Agreement (offer and acceptance), consideration, competent parties, and legal purpose -
ANS-What are the four elements of an insurance contract?
Alien - ANS-What type of insurer is formed under the laws of another country?
An absolutely true statement upon which the validity of the insurance contract is based -
ANS-What is a warranty in an insurance contract?
authorized or admitted - ANS-If an insurer meets the state's financial requirements and is
approved to transact business in the state, it is considered what type of insurer?
Certificate of Authority - ANS-What document is required for an insurance company to transact
insurance?
Complete a new application or ask the applicant to initial correction on the original application -
ANS-When a change needs to be made on the application for insurance, which is the best
method for correcting the information?
Domestic, Foreign, and Alien - ANS-Insurers are classified according to their domicile. What are
the three types of insurers?
express, implied, apparent - ANS-What are the three types of agent authority?
Fiduciary - ANS-The requirement that agents must account for an promptly remit all insurance
funds collected is known as what type of agent responsibility?
Foreign - ANS-An insurance company is domiciled in California and transacts insurance in
Nevada. What is this insurer's classification in Nevada?
foreign - ANS-An insurance company that is formed under the laws of another state is known as
what type of insurer?
hazards - ANS-Conditions that increase the chance of a loss are known as what?
