Exampromax - Stuvia US 2025/2026
1
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 Assignment Expert
Correct Answer
Exampromax - Stuvia US
Mary Brown Insurance Services.
When must insurance records of insurance agents and brokers be made
available to the Insurance Commissioner?
Correct Answer
At all times.
Any situation that presents the possibility of a loss is known as
Correct Answer
a loss exposure
Which of the following information is not required to be communicated in
a Life insurance contract?
Correct Answer
, Exampromax - Stuvia US 2025/2026
2
Personal judgment.
The direct distribution of insurance utilizes all of the following to promote
the sale of insurance EXCEPT
Correct Answer
telephone call from an agent.
A contract in which one party promises to indemnify another against loss
that arises from an unknown event is
© 2025 Assignment Expert
Correct Answer
Exampromax - Stuvia US
an insurance policy.
All of the occurrences listed below are examples of an insurable event as
defined by the California Insurance Code EXCEPT
Correct Answer
an insured suffers a financial loss in the state lo ttery
What is meant by referring to an insurance policy as a unilateral contract?
Correct Answer
Only one party makes a legally enforceable promise.
All of the following statements about aleatory contracts are true EXCEPT
Correct Answer
, Exampromax - Stuvia US 2025/2026
3
the insured and insurer contribute equally to the contract.
All of the following would be considered unfair trade practices EXCEPT
Correct Answer
committing any act of discrimination whether it be deemed
fair or unfair.
A contract of indemnity is one in which
© 2025 Assignment Expert
Correct Answer
Exampromax - Stuvia US
one party is restored to the same financial position the
party was in before the loss occurred.
In insurance terminology, "indemnity" means
Correct Answer
make whole.
As defined in the California insurance Code, "insurance" is a
Correct Answer
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?
Correct Answer
, Exampromax - Stuvia US 2025/2026
4
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?
Correct Answer
Fiduciary
Which of the following statements regarding risk is TRUE?
© 2025 Assignment Expert
Correct Answer
Exampromax - Stuvia US
Only pure risks are insurable.
The purchase of an insurance policy may accomplish all of the following
for the insured EXCEPT
Correct Answer
the elimination of risk.
Insureds are entitled to recover an amount NOT greater than the amount of
their loss under the principle of
Correct Answer
indemnity.
What rule is used to determine the importance of a representation?
Correct Answer
1
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 Assignment Expert
Correct Answer
Exampromax - Stuvia US
Mary Brown Insurance Services.
When must insurance records of insurance agents and brokers be made
available to the Insurance Commissioner?
Correct Answer
At all times.
Any situation that presents the possibility of a loss is known as
Correct Answer
a loss exposure
Which of the following information is not required to be communicated in
a Life insurance contract?
Correct Answer
, Exampromax - Stuvia US 2025/2026
2
Personal judgment.
The direct distribution of insurance utilizes all of the following to promote
the sale of insurance EXCEPT
Correct Answer
telephone call from an agent.
A contract in which one party promises to indemnify another against loss
that arises from an unknown event is
© 2025 Assignment Expert
Correct Answer
Exampromax - Stuvia US
an insurance policy.
All of the occurrences listed below are examples of an insurable event as
defined by the California Insurance Code EXCEPT
Correct Answer
an insured suffers a financial loss in the state lo ttery
What is meant by referring to an insurance policy as a unilateral contract?
Correct Answer
Only one party makes a legally enforceable promise.
All of the following statements about aleatory contracts are true EXCEPT
Correct Answer
, Exampromax - Stuvia US 2025/2026
3
the insured and insurer contribute equally to the contract.
All of the following would be considered unfair trade practices EXCEPT
Correct Answer
committing any act of discrimination whether it be deemed
fair or unfair.
A contract of indemnity is one in which
© 2025 Assignment Expert
Correct Answer
Exampromax - Stuvia US
one party is restored to the same financial position the
party was in before the loss occurred.
In insurance terminology, "indemnity" means
Correct Answer
make whole.
As defined in the California insurance Code, "insurance" is a
Correct Answer
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?
Correct Answer
, Exampromax - Stuvia US 2025/2026
4
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?
Correct Answer
Fiduciary
Which of the following statements regarding risk is TRUE?
© 2025 Assignment Expert
Correct Answer
Exampromax - Stuvia US
Only pure risks are insurable.
The purchase of an insurance policy may accomplish all of the following
for the insured EXCEPT
Correct Answer
the elimination of risk.
Insureds are entitled to recover an amount NOT greater than the amount of
their loss under the principle of
Correct Answer
indemnity.
What rule is used to determine the importance of a representation?
Correct Answer
