52 Hour California Life, Accident and Health Insurance Exam
Course 100% Solved
#8Question #121859
When an insurer can no longer meet its financial obligations when they are due, the insurer is
considered to be: - Correct Answer:
Insolvent
Explanation:
Insolvency means any impairment of required minimum paid-in capital or the inability of the insurer
to meet its financial obligations when they are due.
#9Question #121863
An appointment as an agent of an insurer becomes effective on the date it is: - Correct Answer:
Signed by the insurer
Explanation:
The authority to transact insurance given to a licensee by an insurer by appointment shall be effective
as of the date the notice of appointment is signed by the insurer.
#10Question #121855
Under the California Insurance Code (CIC), neither party to a contract of insurance is bound to
communicate any of the following EXCEPT: - Correct Answer:
Information known to be material
Explanation:
Each party of a contract of insurance shall communicate to the other, in good faith, all facts within
their knowledge which are or which they believe to be material to the contract.
#12Question #121857
A representation that fails to correspond with its assertions or stipulations is: - Correct Answer:
False
Explanation:
A representation is false when the facts fail to correspond with its assertions or stipulations.
#20Question #121853
A cause of loss is also known as a(n): ~
Correct Answer:
Peril
Explanation:
Risk is defined as the chance of loss. A hazard is something that increases the risk. A peril is a cause of
loss, such as accident or sickness. An exposure is a condition that could result in a loss.
#23Question #121852
Making an insured whole again after a loss is known as: - Correct Answer:
To indemnify
Explanation:
The principle of indemnity states that the purpose of insurance is to restore a person financially to
the position they were in before the claim occurred. To make a person whole again financially is to
indemnify that person.
, #29Question #121858
An insurer organized under the laws of another state who is legally transacting insurance in this state
is known as: - Correct Answer:
A foreign insurer
Explanation:
A domestic insurer is organized in this state, a foreign insurer is organized in another state and an
alien insurer is organized in
#11Question #121875
A cause of loss is also known as a(n): - Wrong Answer:
Risk
Correct Answer:
Peril
Explanation:
Risk is defined as the chance of loss. A hazard is something that increases the risk. A peril is a cause of
loss, such as accident or sickness. An exposure is a condition that could result in a loss.
#22Question #121887
A person shall not solicit, negotiate, or effect contracts of insurance unless the person holds a valid
license from the Commissioner authorizing them to act in that capacity. Any person who transacts
insurance without a valid license to do so is guilty of a misdemeanor punishable by: - Wrong Answer:
Imprisonment in a county jail for a period not exceeding 1 year
Correct Answer:
Both a fine not exceeding $50,000 and up to 1 year in a county jail
Explanation:
Any person who transacts insurance without a valid license to do so is guilty of a misdemeanor
punishable by a fine not exceeding $50,000 or by imprisonment in a county jail for a period not
exceeding one year, or by both that fine and imprisonment.
#27Question #121874
Making an insured whole again after a loss is known as: - Wrong Answer:
Estoppel
Correct Answer:
To indemnify
Explanation:
The principle of indemnity states that the purpose of insurance is to restore a person financially to
the position they were in before the claim occurred. To make a person whole again financially is to
indemnify that person.
#35Question #121883
The neglect to communicate that which a party knows, and ought to communicate, is concealment.
Concealment entitles the injured party to rescind the insurance if it is: - Wrong Answer:
Unintentional
Correct Answer:
Intentional or unintentional
Explanation:
Concealment, whether intentional or unintentional, entitles the injured party to rescind (void) an
insurance contract.
#36Question #122118
Course 100% Solved
#8Question #121859
When an insurer can no longer meet its financial obligations when they are due, the insurer is
considered to be: - Correct Answer:
Insolvent
Explanation:
Insolvency means any impairment of required minimum paid-in capital or the inability of the insurer
to meet its financial obligations when they are due.
#9Question #121863
An appointment as an agent of an insurer becomes effective on the date it is: - Correct Answer:
Signed by the insurer
Explanation:
The authority to transact insurance given to a licensee by an insurer by appointment shall be effective
as of the date the notice of appointment is signed by the insurer.
#10Question #121855
Under the California Insurance Code (CIC), neither party to a contract of insurance is bound to
communicate any of the following EXCEPT: - Correct Answer:
Information known to be material
Explanation:
Each party of a contract of insurance shall communicate to the other, in good faith, all facts within
their knowledge which are or which they believe to be material to the contract.
#12Question #121857
A representation that fails to correspond with its assertions or stipulations is: - Correct Answer:
False
Explanation:
A representation is false when the facts fail to correspond with its assertions or stipulations.
#20Question #121853
A cause of loss is also known as a(n): ~
Correct Answer:
Peril
Explanation:
Risk is defined as the chance of loss. A hazard is something that increases the risk. A peril is a cause of
loss, such as accident or sickness. An exposure is a condition that could result in a loss.
#23Question #121852
Making an insured whole again after a loss is known as: - Correct Answer:
To indemnify
Explanation:
The principle of indemnity states that the purpose of insurance is to restore a person financially to
the position they were in before the claim occurred. To make a person whole again financially is to
indemnify that person.
, #29Question #121858
An insurer organized under the laws of another state who is legally transacting insurance in this state
is known as: - Correct Answer:
A foreign insurer
Explanation:
A domestic insurer is organized in this state, a foreign insurer is organized in another state and an
alien insurer is organized in
#11Question #121875
A cause of loss is also known as a(n): - Wrong Answer:
Risk
Correct Answer:
Peril
Explanation:
Risk is defined as the chance of loss. A hazard is something that increases the risk. A peril is a cause of
loss, such as accident or sickness. An exposure is a condition that could result in a loss.
#22Question #121887
A person shall not solicit, negotiate, or effect contracts of insurance unless the person holds a valid
license from the Commissioner authorizing them to act in that capacity. Any person who transacts
insurance without a valid license to do so is guilty of a misdemeanor punishable by: - Wrong Answer:
Imprisonment in a county jail for a period not exceeding 1 year
Correct Answer:
Both a fine not exceeding $50,000 and up to 1 year in a county jail
Explanation:
Any person who transacts insurance without a valid license to do so is guilty of a misdemeanor
punishable by a fine not exceeding $50,000 or by imprisonment in a county jail for a period not
exceeding one year, or by both that fine and imprisonment.
#27Question #121874
Making an insured whole again after a loss is known as: - Wrong Answer:
Estoppel
Correct Answer:
To indemnify
Explanation:
The principle of indemnity states that the purpose of insurance is to restore a person financially to
the position they were in before the claim occurred. To make a person whole again financially is to
indemnify that person.
#35Question #121883
The neglect to communicate that which a party knows, and ought to communicate, is concealment.
Concealment entitles the injured party to rescind the insurance if it is: - Wrong Answer:
Unintentional
Correct Answer:
Intentional or unintentional
Explanation:
Concealment, whether intentional or unintentional, entitles the injured party to rescind (void) an
insurance contract.
#36Question #122118
