CALIFORNIA Life, Accident and Health Questions and
Answers Graded A+
A moral hazard - Answeris a dishonest person (lacking in morals)
.A morale hazard - Answera careless person.
.A peril - Answeris a cause of loss
.Pure risk - Answeris insurable & includes only a chance of loss.
.The highest premium - Answerwould be found with a substandard risk classification.
.Agent commissions - Answerare an insurer expense
."Insurance" - Answeris a contract that transfers risk from one party to another.
.An "insurance policy" - Answeris a written contract
.Neglect to communicate that which a party knows is "concealment" - Answermay cause
the injured party
to rescind the policy
."Materiality" - Answeris determined solely by the probable and reasonable influence of
the facts upon the part
to whom the communication is due
.The "materiality of concealment" - Answeris the rule used to determine the importance
of the
misrepresentation.
.An insurance policy - Answermust specify the parties between whom the contract is
made
.The financial rating of an insurer - Answeris not required to be included in the insurance
policy
.In a direct response marketing system - Answerthe mail and/or internet is used to sell
policies, not agents
.An insurance broker is a person who - Answerfor compensation and on behalf of
another person, transacts
insurance.
, .An insurance agent is a person who - Answerfor compensation, transacts insurance for
the insurer.
.An insurance solicitor - Answeris a person employed by an insurance agent or broker
to aid in insurance
transactions
.A person can always use their legal name - Answerto transact insurance
.The state may disapprove the use of any true or fictitious name except - Answera
person's legal name
.An insurance agent or broker hires a third party to prepare their website - AnswerThe
insurance agent or
broker, not the third party, is responsible for the content of the website.
.An admitted insurer - Answeris an insurer entitled to transact business in this state
.A mutual insurer - Answeris owned by the policyholders and issues participating
policies
.The Insurance Commissioner in California - Answeris elected by the people.
.The Insurance Commissioner may serve - Answerup to two (2) four-year terms
.A mutual insurer must pay out - Answerdividends at minimum annually.
.An insurance policy - Answeris a legal contract.
.A representation in an insurance contract - Answeris an implied warranty
.Concealment, whether intentional or unintentional, entitles the injured party to -
Answerrescind an insurance
contract.
.Agents of insurers who utilize "direct response" marketing systems do not -
Answerconduct personal
interviews with customers.
.Any person who transacts insurance without a valid license - Answeris guilty of a
misdemeanor.
.Transacting insurance does not include subscribing to newspapers that - Answerother
agents advertise in
Answers Graded A+
A moral hazard - Answeris a dishonest person (lacking in morals)
.A morale hazard - Answera careless person.
.A peril - Answeris a cause of loss
.Pure risk - Answeris insurable & includes only a chance of loss.
.The highest premium - Answerwould be found with a substandard risk classification.
.Agent commissions - Answerare an insurer expense
."Insurance" - Answeris a contract that transfers risk from one party to another.
.An "insurance policy" - Answeris a written contract
.Neglect to communicate that which a party knows is "concealment" - Answermay cause
the injured party
to rescind the policy
."Materiality" - Answeris determined solely by the probable and reasonable influence of
the facts upon the part
to whom the communication is due
.The "materiality of concealment" - Answeris the rule used to determine the importance
of the
misrepresentation.
.An insurance policy - Answermust specify the parties between whom the contract is
made
.The financial rating of an insurer - Answeris not required to be included in the insurance
policy
.In a direct response marketing system - Answerthe mail and/or internet is used to sell
policies, not agents
.An insurance broker is a person who - Answerfor compensation and on behalf of
another person, transacts
insurance.
, .An insurance agent is a person who - Answerfor compensation, transacts insurance for
the insurer.
.An insurance solicitor - Answeris a person employed by an insurance agent or broker
to aid in insurance
transactions
.A person can always use their legal name - Answerto transact insurance
.The state may disapprove the use of any true or fictitious name except - Answera
person's legal name
.An insurance agent or broker hires a third party to prepare their website - AnswerThe
insurance agent or
broker, not the third party, is responsible for the content of the website.
.An admitted insurer - Answeris an insurer entitled to transact business in this state
.A mutual insurer - Answeris owned by the policyholders and issues participating
policies
.The Insurance Commissioner in California - Answeris elected by the people.
.The Insurance Commissioner may serve - Answerup to two (2) four-year terms
.A mutual insurer must pay out - Answerdividends at minimum annually.
.An insurance policy - Answeris a legal contract.
.A representation in an insurance contract - Answeris an implied warranty
.Concealment, whether intentional or unintentional, entitles the injured party to -
Answerrescind an insurance
contract.
.Agents of insurers who utilize "direct response" marketing systems do not -
Answerconduct personal
interviews with customers.
.Any person who transacts insurance without a valid license - Answeris guilty of a
misdemeanor.
.Transacting insurance does not include subscribing to newspapers that - Answerother
agents advertise in
