Califomia Life, Accident And Health Final Exam Questions And Answers (Rated A+)

Califomia Life, Accident And Health Final Exam Questions And Answers (Rated 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 8 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 ofthe facts upon the part to whom the communication is due The "materiality of concealment" ANSWER — is the rule used to determine the importance ofthe 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 ins urance. 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