1
LIFE, ACCIDENT AND HEALTH OR
SICKNESS EXAMINATION LATEST 2025
ACTUAL EXAM QUESTIONS AND
CORRECT ANSWERS
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.
, 2
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
, 3
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
, 4
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
LIFE, ACCIDENT AND HEALTH OR
SICKNESS EXAMINATION LATEST 2025
ACTUAL EXAM QUESTIONS AND
CORRECT ANSWERS
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.
, 2
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
, 3
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
, 4
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
