California Insurance Code and Ethics 46 Questions with 100% Correct Answers | Verified

Insurance CIC 22 - ️️The legal agreement or contract whereby the two parties involved agree to the limits of the indemnification, the circumstances under which it will occur and what things of value will be exchanged by the parties to the contract. Transfers the risk of lass from an individual or business entity to an insurance company, which in turn spreads the costs of unexpected losses to many individuals. Define what a Person is: - ️️A legal entity, which acts on behalf of itself, accepting legal and civil responsibility for the actions it performs and making contracts in its own name. What entities are defined as Persons? - ️️Include individual human beings, associations, organizations, corporations, partnerships, and trusts. Define Reinsurance CIC 620: What is the purpose of Reinsurance? - ️️A contract under which one insurance company (the reinsurer) indemnifies another insurance company for part or all of its liabilities. The purpose of reinsurance is to protect insurers against catastrophic losses. What is an Insurance Policy CIC 380? - ️️The written instrument in which a contract of insurance is set forth. Define a Warranty: - ️️A written guarantee that the information provided is true and accurate. Define a Rescission: - ️️Revocation of a contract