CALIFORNIA Life, Accident and Health Questions and Answers Graded A+

CALIFORNIA Life, Accident and Health Questions and Answers Graded A+ A moral hazard - Answer ️️ -is a dishonest person (lacking in morals) A morale hazard - Answer ️️ -a careless person. A peril - Answer ️️ -is a cause of loss Pure risk - Answer ️️ -is insurable & includes only a chance of loss. The highest premium - Answer ️️ -would be found with a substandard risk classification. Agent commissions - Answer ️️ -are an insurer expense "Insurance" - Answer ️️ -is a contract that transfers risk from one party to another. An "insurance policy" - Answer ️️ -is a written contract Neglect to communicate that which a party knows is "concealment" - Answer ️️ -may cause the injured party to rescind the policy "Materiality" - Answer ️️ -is determined solely by the probable and reasonable influence of the facts upon the part to whom the communication is due The "materiality of concealment" - Answer ️️ -is the rule used to determine the importance of the misrepresentation. An insurance policy - Answer ️️ -must specify the parties between whom the contract is made The financial rating of an insurer - Answer ️️ -is not required to be included in the insurance policy In a direct response marketing system - Answer ️️ -the mail and/or internet is used to sell policies, not agents An insurance broker is a person who - Answer ️️ -for compensation and on behalf of another person, transacts insurance. An insurance agent is a person who - Answer ️️ -for compensation, transacts insurance for the insurer. An insurance solicitor - Answer ️️ -is a person employed by an insurance agent or broker to aid in insurance transactions A person can always use their legal name - Answer ️️ -to transact insurance The state may disapprove the use of any true or fictitious name except - Answer ️️ -a person's legal name An insurance agent or broker hires a third party to prepare their website - Answer ️️ -The insurance agent or broker, not the third party, is responsible for the content of the website. An admitted insurer - Answer ️️ -is an insurer entitled to transact business in this state A mutual insurer - Answer ️️ -is owned by the policyholders and issues participating policies The Insurance Commissioner in California - Answer ️️ -is elected by the people. The Insurance Commissioner may serve - Answer ️️ -up to two (2) four-year terms A mutual insurer must pay out - Answer ️️ -dividends at minimum annually. An insurance policy - Answer ️️ -is a legal contract. A representation in an insurance contract - Answer ️️ -is an implied warranty Concealment, whether intentional or unintenti