Exam Fx Ca life and Health EXAM Questions and
Answers (A+ Solution guide) (2025) Questions And
Answers Solved 100% Correct!!
Insurance - (ANSWER)Contract whereby one undertakes to indemnify another
against loss, damage, or liabilty arising from a unknown event.
Insurer - (ANSWER)Any person capable of making a contract; subject to
restrictions imposed by the CA insurance code.
Speculative risk - (ANSWER)Chance of loss and potential for gain. This risk is not
insurable.
Hazard - (ANSWER)Increase the risk.
Law of Large numbers - (ANSWER)The more similar risks the better they can
guess approx. how many losses they have in a given time period.
Loss exposure - (ANSWER)Situation the presents the possibility of a loss
Doctrine of upmost good faith states - (ANSWER)That all parities to the contract
can rely upon statements of other parties.
Policy - (ANSWER)Written instrument in witch a contract is set forth
,Premium - (ANSWER)Amount insured paid to the insurer for coverage.
Rate - (ANSWER)Price of insurance for each exposure unit
Rate - (ANSWER)Cost per exposure unit
How to determine the amount the insured will pay - (ANSWER)Multiply the rate
by the number of exposure units purchased.
express warranty - (ANSWER)Statement of fact in a policy of a matter relating to
the person/thing insured
Warranty - (ANSWER)May be expressed or applied
Implied warranty - (ANSWER)Representation in an insurance contract
Representation pt1 - (ANSWER)May be oral /written may be made @ time
of/before the insurance policy
Representation is false when - (ANSWER)Facts fail to correspond with its
stipulations
,False representation on a signed claim - (ANSWER)May subject the insured to
perjury
Concealment - (ANSWER)Party fails to communicate that witch a party knows
and ought to communicate so the other party can make a sound decision
Concealment intentional / unintentional - (ANSWER)Entitles the injured party to
rescind the contract.
Rescind a policy - (ANSWER)Void or cancel policy flat by returning all premiums to
the insured. It is as if the policy never existed no coverage applies.
Insurance applicant - (ANSWER)Individual who is applying to purchase insurance
Life insurance creates a - (ANSWER)Immediate estate upon death of insured in
that the death benefit will be paid to the beneficiary
Insurable Interest - (ANSWER)Must exist @ time if application
Key person life insurance - (ANSWER)Is used by a business to protect itself on
case a valued employee dies. Death Benefit is paid to the company to hire and
train replacement.
, Key person life insurance is tax - (ANSWER)Deductible but benefits are not
taxable
Purchasing life insurance to fund a buy/sell agreement - (ANSWER)Is a business
use not personal use
Under CIC all ads, policies for certificates of term life sold to those 55 yrs + must
include a - (ANSWER)Term life insurance monetary value index
In event of an adverse underwriting decision the insurer or agent must -
(ANSWER)Provide a individual with the specific reason for the decision and a
summary of his/her rights.
Preferred Risk - (ANSWER)Exceptional body no health issues. Lowest risk
Preferred risk provides the lowest premium - (ANSWER)As they pose the least
risk to insurer
MIB (medical info bureau) - (ANSWER)Is a source that gives past medical history
of clients as reference to agent/underwriter
Medical info bureau required to report - (ANSWER)Medical impairments found
during underwriting process
Answers (A+ Solution guide) (2025) Questions And
Answers Solved 100% Correct!!
Insurance - (ANSWER)Contract whereby one undertakes to indemnify another
against loss, damage, or liabilty arising from a unknown event.
Insurer - (ANSWER)Any person capable of making a contract; subject to
restrictions imposed by the CA insurance code.
Speculative risk - (ANSWER)Chance of loss and potential for gain. This risk is not
insurable.
Hazard - (ANSWER)Increase the risk.
Law of Large numbers - (ANSWER)The more similar risks the better they can
guess approx. how many losses they have in a given time period.
Loss exposure - (ANSWER)Situation the presents the possibility of a loss
Doctrine of upmost good faith states - (ANSWER)That all parities to the contract
can rely upon statements of other parties.
Policy - (ANSWER)Written instrument in witch a contract is set forth
,Premium - (ANSWER)Amount insured paid to the insurer for coverage.
Rate - (ANSWER)Price of insurance for each exposure unit
Rate - (ANSWER)Cost per exposure unit
How to determine the amount the insured will pay - (ANSWER)Multiply the rate
by the number of exposure units purchased.
express warranty - (ANSWER)Statement of fact in a policy of a matter relating to
the person/thing insured
Warranty - (ANSWER)May be expressed or applied
Implied warranty - (ANSWER)Representation in an insurance contract
Representation pt1 - (ANSWER)May be oral /written may be made @ time
of/before the insurance policy
Representation is false when - (ANSWER)Facts fail to correspond with its
stipulations
,False representation on a signed claim - (ANSWER)May subject the insured to
perjury
Concealment - (ANSWER)Party fails to communicate that witch a party knows
and ought to communicate so the other party can make a sound decision
Concealment intentional / unintentional - (ANSWER)Entitles the injured party to
rescind the contract.
Rescind a policy - (ANSWER)Void or cancel policy flat by returning all premiums to
the insured. It is as if the policy never existed no coverage applies.
Insurance applicant - (ANSWER)Individual who is applying to purchase insurance
Life insurance creates a - (ANSWER)Immediate estate upon death of insured in
that the death benefit will be paid to the beneficiary
Insurable Interest - (ANSWER)Must exist @ time if application
Key person life insurance - (ANSWER)Is used by a business to protect itself on
case a valued employee dies. Death Benefit is paid to the company to hire and
train replacement.
, Key person life insurance is tax - (ANSWER)Deductible but benefits are not
taxable
Purchasing life insurance to fund a buy/sell agreement - (ANSWER)Is a business
use not personal use
Under CIC all ads, policies for certificates of term life sold to those 55 yrs + must
include a - (ANSWER)Term life insurance monetary value index
In event of an adverse underwriting decision the insurer or agent must -
(ANSWER)Provide a individual with the specific reason for the decision and a
summary of his/her rights.
Preferred Risk - (ANSWER)Exceptional body no health issues. Lowest risk
Preferred risk provides the lowest premium - (ANSWER)As they pose the least
risk to insurer
MIB (medical info bureau) - (ANSWER)Is a source that gives past medical history
of clients as reference to agent/underwriter
Medical info bureau required to report - (ANSWER)Medical impairments found
during underwriting process
