CA CDI Site Life, Accident and
Healthination (Life Agent) Chinese
Exam
Question 1. Which of the following best describes the principle of
indemnification in insurance?
A) To make a profit after a loss
B) To restore the insured to their original financial position
C) To provide investment opportunities
D) To pay double the amount of the loss
Answer: B
Explanation: Indemnification ensures that the insured is returned to
their financial position prior to the loss, not to profit from insurance.
Question 2. What is the meaning of "insurable interest" in insurance
contracts?
,CA CDI Site Life, Accident and
Healthination (Life Agent) Chinese
Exam
A) The insured must be interested in investing
B) The insured must face a potential loss
C) The insurer must have a profit motive
D) The agent must have a license
Answer: B
Explanation: Insurable interest means the policyholder would suffer a
financial loss if the insured event occurs.
Question 3. According to the California Insurance Code, a "person" is
defined as:
A) Only an individual
B) Only a corporation
,CA CDI Site Life, Accident and
Healthination (Life Agent) Chinese
Exam
C) An individual, association, partnership, or corporation
D) Only a government entity
Answer: C
Explanation: "Person" includes individuals, associations, partnerships,
and corporations under the Code.
Question 4. What is the primary difference between an insurance agent
and a broker in California?
A) Agents represent the insurer; brokers represent the client
B) Agents cannot sell insurance; brokers can
C) Agents must be lawyers; brokers do not
D) There is no legal distinction
, CA CDI Site Life, Accident and
Healthination (Life Agent) Chinese
Exam
Answer: A
Explanation: Agents act on behalf of insurers, while brokers act on
behalf of insurance buyers.
Question 5. The legal characteristic of "adhesion" in insurance contracts
means:
A) The contract is negotiated equally by both parties
B) The insured must accept the contract as written
C) The insurer can change terms at will
D) The contract is voidable at any time
Answer: B
Healthination (Life Agent) Chinese
Exam
Question 1. Which of the following best describes the principle of
indemnification in insurance?
A) To make a profit after a loss
B) To restore the insured to their original financial position
C) To provide investment opportunities
D) To pay double the amount of the loss
Answer: B
Explanation: Indemnification ensures that the insured is returned to
their financial position prior to the loss, not to profit from insurance.
Question 2. What is the meaning of "insurable interest" in insurance
contracts?
,CA CDI Site Life, Accident and
Healthination (Life Agent) Chinese
Exam
A) The insured must be interested in investing
B) The insured must face a potential loss
C) The insurer must have a profit motive
D) The agent must have a license
Answer: B
Explanation: Insurable interest means the policyholder would suffer a
financial loss if the insured event occurs.
Question 3. According to the California Insurance Code, a "person" is
defined as:
A) Only an individual
B) Only a corporation
,CA CDI Site Life, Accident and
Healthination (Life Agent) Chinese
Exam
C) An individual, association, partnership, or corporation
D) Only a government entity
Answer: C
Explanation: "Person" includes individuals, associations, partnerships,
and corporations under the Code.
Question 4. What is the primary difference between an insurance agent
and a broker in California?
A) Agents represent the insurer; brokers represent the client
B) Agents cannot sell insurance; brokers can
C) Agents must be lawyers; brokers do not
D) There is no legal distinction
, CA CDI Site Life, Accident and
Healthination (Life Agent) Chinese
Exam
Answer: A
Explanation: Agents act on behalf of insurers, while brokers act on
behalf of insurance buyers.
Question 5. The legal characteristic of "adhesion" in insurance contracts
means:
A) The contract is negotiated equally by both parties
B) The insured must accept the contract as written
C) The insurer can change terms at will
D) The contract is voidable at any time
Answer: B
