52 HOUR CALIFORNIA LIFE, ACCIDENT AND HEALTH COURSE 2024

52 HOUR CALIFORNIA LIFE, ACCIDENT AND HEALTH COURSE 2024 #8Question #121859 When an insurer can no longer meet its financial obligations when they are due, the insurer is considered to be: -Answer-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: -Answer- 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: -Answer-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: -Answer- 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: -Answer-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: -Answer-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): -Answer-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: -Answer-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