1 Exampromax - Stuvia US 2025/2026
CA LIFE AND HEALTH INSURANCE
EXAM 3 LATEST VERSIONS (VERSION A,
B AND C) 2024-2025 ACTUAL EXAM 350
QUESTIONS AND CORRECT DETAILED
ANSWERS
As authorized by the California Insurance Code, the Insurance
Commissioner has provided standards for names used by life insurance
agents. Under these standards which, if any, of the following are
automatically acceptable for Mary Brown, a holder of the CLU designation?
© 2025 All rights reserved®
Ans: Mary Brown Insurance Services.
Exampromax - Stuvia US
When must insurance records of insurance agents and brokers be made
available to the Insurance Commissioner?
Ans: At all times.
Any situation that presents the possibility of a loss is known as
Ans: a loss exposure
Which of the following information is not required to be communicated in a
Life insurance contract?
Ans: Personal judgment.
The direct distribution of insurance utilizes all of the following to promote
the sale of insurance EXCEPT
Ans: telephone call from an agent.
A contract in which one party promises to indemnify another against loss
that arises from an unknown event is
Ans: an insurance policy.
, 2 Exampromax - Stuvia US 2025/2026
All of the occurrences listed below are examples of an insurable event as
defined by the California Insurance Code EXCEPT
Ans: an insured suffers a financial loss in the state lottery
What is meant by referring to an insurance policy as a unilateral contract?
Ans: Only one party makes a legally enforceable promise.
All of the following statements about aleatory contracts are true EXCEPT
Ans: the insured and insurer contribute equally to the contract.
All of the following would be considered unfair trade practices EXCEPT
© 2025 All rights reserved®
Ans: committing any act of discrimination whether it be deemed fair or
Exampromax - Stuvia US
unfair.
A contract of indemnity is one in which
Ans: one party is restored to the same financial position the party was in
before the loss occurred.
In insurance terminology, "indemnity" means
Ans: make whole.
As defined in the California insurance Code, "insurance" is a
Ans: contract.
What would a person be guilty of who refuses to deliver any books, records,
or assets to the commissioner once a seizure order has been executed?
Ans: A misdemeanor
An agent who is acting as an insurance agent, broker, solicitor, life agent,
accident and health, or bail agent acts in which capacity when handling
premiums or return premiums for an insured?
Ans: Fiduciary
, 3 Exampromax - Stuvia US 2025/2026
Which of the following statements regarding risk is TRUE?
Ans: Only pure risks are insurable.
The purchase of an insurance policy may accomplish all of the following for
the insured EXCEPT
Ans: the elimination of risk.
Insureds are entitled to recover an amount NOT greater than the amount of
their loss under the principle of
Ans: indemnity.
© 2025 All rights reserved®
What rule is used to determine the importance of a representation?
Exampromax - Stuvia US
Ans: The materiality of concealment.
The required contents of a policy include all of the following EXCEPT
Ans: the probability of loss
All of the following are characteristics of reinsurance EXCEPT it
Ans: increases the unearned premium reserve.
According to the California Insurance Code, an insurance policy must
specify all of the following EXCEPT the
Ans: financial rating of the insurer.
All of the following qualify as "background information" as defined in
Section 1729.2 of the California Insurance Code, EXCEPT
Ans: misdemeanor charges filed, not resulting in a conviction.
Loss retention is an effective risk management technique when all of the
following conditions exist EXCEPT the
Ans: probability of loss is unknown.
CA LIFE AND HEALTH INSURANCE
EXAM 3 LATEST VERSIONS (VERSION A,
B AND C) 2024-2025 ACTUAL EXAM 350
QUESTIONS AND CORRECT DETAILED
ANSWERS
As authorized by the California Insurance Code, the Insurance
Commissioner has provided standards for names used by life insurance
agents. Under these standards which, if any, of the following are
automatically acceptable for Mary Brown, a holder of the CLU designation?
© 2025 All rights reserved®
Ans: Mary Brown Insurance Services.
Exampromax - Stuvia US
When must insurance records of insurance agents and brokers be made
available to the Insurance Commissioner?
Ans: At all times.
Any situation that presents the possibility of a loss is known as
Ans: a loss exposure
Which of the following information is not required to be communicated in a
Life insurance contract?
Ans: Personal judgment.
The direct distribution of insurance utilizes all of the following to promote
the sale of insurance EXCEPT
Ans: telephone call from an agent.
A contract in which one party promises to indemnify another against loss
that arises from an unknown event is
Ans: an insurance policy.
, 2 Exampromax - Stuvia US 2025/2026
All of the occurrences listed below are examples of an insurable event as
defined by the California Insurance Code EXCEPT
Ans: an insured suffers a financial loss in the state lottery
What is meant by referring to an insurance policy as a unilateral contract?
Ans: Only one party makes a legally enforceable promise.
All of the following statements about aleatory contracts are true EXCEPT
Ans: the insured and insurer contribute equally to the contract.
All of the following would be considered unfair trade practices EXCEPT
© 2025 All rights reserved®
Ans: committing any act of discrimination whether it be deemed fair or
Exampromax - Stuvia US
unfair.
A contract of indemnity is one in which
Ans: one party is restored to the same financial position the party was in
before the loss occurred.
In insurance terminology, "indemnity" means
Ans: make whole.
As defined in the California insurance Code, "insurance" is a
Ans: contract.
What would a person be guilty of who refuses to deliver any books, records,
or assets to the commissioner once a seizure order has been executed?
Ans: A misdemeanor
An agent who is acting as an insurance agent, broker, solicitor, life agent,
accident and health, or bail agent acts in which capacity when handling
premiums or return premiums for an insured?
Ans: Fiduciary
, 3 Exampromax - Stuvia US 2025/2026
Which of the following statements regarding risk is TRUE?
Ans: Only pure risks are insurable.
The purchase of an insurance policy may accomplish all of the following for
the insured EXCEPT
Ans: the elimination of risk.
Insureds are entitled to recover an amount NOT greater than the amount of
their loss under the principle of
Ans: indemnity.
© 2025 All rights reserved®
What rule is used to determine the importance of a representation?
Exampromax - Stuvia US
Ans: The materiality of concealment.
The required contents of a policy include all of the following EXCEPT
Ans: the probability of loss
All of the following are characteristics of reinsurance EXCEPT it
Ans: increases the unearned premium reserve.
According to the California Insurance Code, an insurance policy must
specify all of the following EXCEPT the
Ans: financial rating of the insurer.
All of the following qualify as "background information" as defined in
Section 1729.2 of the California Insurance Code, EXCEPT
Ans: misdemeanor charges filed, not resulting in a conviction.
Loss retention is an effective risk management technique when all of the
following conditions exist EXCEPT the
Ans: probability of loss is unknown.
