STUDYSAGE
CA LIFE INSURANCE EXAM|COMPLETE
STUDY GUIDE WITH DETAILED
QUESTIONS AND 100% RIGHT/AUTHENTIC
ANSWERS|GUARANTEED A PASS|
ALREADY GRADED A|LATEST UPDATED
VERSION
What is meant by referring to an insurance policy as a unilateral contract? -
CORRECT ANSWERS.✔️✔O ️ nly one party makes a legally enforceable promise.
When must insurance records of insurance agents and brokers be made available
to the Insurance Commissioner? - CORRECT ANSWERS.✔️✔️At all times.
Any situation that presents the possibility of a loss is known as - CORRECT
ANSWERS.✔️✔️a loss exposure
Which of the following information is not required to be communicated in a Life
insurance contract? - CORRECT ANSWERS.✔️✔️Personal judgment.
The direct distribution of insurance utilizes all of the following to promote the sale
of insurance EXCEPT - CORRECT ANSWERS.✔️✔️telephone call from an agent.
A contract in which one party promises to indemnify another against loss that
arises from an unknown event is - CORRECT ANSWERS.✔️✔️an insurance policy.
All of the occurrences listed below are examples of an insurable event as defined
by the California Insurance Code EXCEPT - CORRECT ANSWERS.✔️✔️an insured
suffers a financial loss in the state lottery
SUCCESS
,STUDYSAGE
All of the following statements about aleatory contracts are true EXCEPT -
CORRECT ANSWERS.✔️✔️the insured and insurer contribute equally to the
contract.
All of the following would be considered unfair trade practices EXCEPT - CORRECT
ANSWERS.✔️✔️committing any act of discrimination whether it be deemed fair
or unfair.
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? - CORRECT ANSWERS.✔️✔️Mary Brown
Insurance Services.
A contract of indemnity is one in which - CORRECT ANSWERS.✔️✔️one party is
restored to the same financial position the party was in before the loss occurred.
In insurance terminology, "indemnity" means - CORRECT ANSWERS.✔️✔️make
whole.
As defined in the California insurance Code, "insurance" is a - CORRECT
ANSWERS.✔️✔️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
ANSWERS.✔️✔️A misdemeanor
SUCCESS
, STUDYSAGE
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 ANSWERS.✔️✔️Fiduciary
Which of the following statements regarding risk is TRUE? - CORRECT
ANSWERS.✔️✔O ️ nly pure risks are insurable.
The purchase of an insurance policy may accomplish all of the following for the
insured EXCEPT - CORRECT ANSWERS.✔️✔️the elimination of risk.
Insureds are entitled to recover an amount NOT greater than the amount of their
loss under the principle of - CORRECT ANSWERS.✔️✔️indemnity.
What rule is used to determine the importance of a representation? - CORRECT
ANSWERS.✔️✔️The materiality of concealment.
The required contents of a policy include all of the following EXCEPT - CORRECT
ANSWERS.✔️✔️the probability of loss
All of the following are characteristics of reinsurance EXCEPT it - CORRECT
ANSWERS.✔️✔️increases the unearned premium reserve.
According to the California Insurance Code, an insurance policy must specify all of
the following EXCEPT the - CORRECT ANSWERS.✔️✔️financial rating of the
insurer.
SUCCESS
CA LIFE INSURANCE EXAM|COMPLETE
STUDY GUIDE WITH DETAILED
QUESTIONS AND 100% RIGHT/AUTHENTIC
ANSWERS|GUARANTEED A PASS|
ALREADY GRADED A|LATEST UPDATED
VERSION
What is meant by referring to an insurance policy as a unilateral contract? -
CORRECT ANSWERS.✔️✔O ️ nly one party makes a legally enforceable promise.
When must insurance records of insurance agents and brokers be made available
to the Insurance Commissioner? - CORRECT ANSWERS.✔️✔️At all times.
Any situation that presents the possibility of a loss is known as - CORRECT
ANSWERS.✔️✔️a loss exposure
Which of the following information is not required to be communicated in a Life
insurance contract? - CORRECT ANSWERS.✔️✔️Personal judgment.
The direct distribution of insurance utilizes all of the following to promote the sale
of insurance EXCEPT - CORRECT ANSWERS.✔️✔️telephone call from an agent.
A contract in which one party promises to indemnify another against loss that
arises from an unknown event is - CORRECT ANSWERS.✔️✔️an insurance policy.
All of the occurrences listed below are examples of an insurable event as defined
by the California Insurance Code EXCEPT - CORRECT ANSWERS.✔️✔️an insured
suffers a financial loss in the state lottery
SUCCESS
,STUDYSAGE
All of the following statements about aleatory contracts are true EXCEPT -
CORRECT ANSWERS.✔️✔️the insured and insurer contribute equally to the
contract.
All of the following would be considered unfair trade practices EXCEPT - CORRECT
ANSWERS.✔️✔️committing any act of discrimination whether it be deemed fair
or unfair.
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? - CORRECT ANSWERS.✔️✔️Mary Brown
Insurance Services.
A contract of indemnity is one in which - CORRECT ANSWERS.✔️✔️one party is
restored to the same financial position the party was in before the loss occurred.
In insurance terminology, "indemnity" means - CORRECT ANSWERS.✔️✔️make
whole.
As defined in the California insurance Code, "insurance" is a - CORRECT
ANSWERS.✔️✔️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
ANSWERS.✔️✔️A misdemeanor
SUCCESS
, STUDYSAGE
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 ANSWERS.✔️✔️Fiduciary
Which of the following statements regarding risk is TRUE? - CORRECT
ANSWERS.✔️✔O ️ nly pure risks are insurable.
The purchase of an insurance policy may accomplish all of the following for the
insured EXCEPT - CORRECT ANSWERS.✔️✔️the elimination of risk.
Insureds are entitled to recover an amount NOT greater than the amount of their
loss under the principle of - CORRECT ANSWERS.✔️✔️indemnity.
What rule is used to determine the importance of a representation? - CORRECT
ANSWERS.✔️✔️The materiality of concealment.
The required contents of a policy include all of the following EXCEPT - CORRECT
ANSWERS.✔️✔️the probability of loss
All of the following are characteristics of reinsurance EXCEPT it - CORRECT
ANSWERS.✔️✔️increases the unearned premium reserve.
According to the California Insurance Code, an insurance policy must specify all of
the following EXCEPT the - CORRECT ANSWERS.✔️✔️financial rating of the
insurer.
SUCCESS
