1 Exampromax - Stuvia US
CA Life and Health Exam Questions and
Answers 100% Correct Answers Already
Graded A+
Q: What is insurance?
Ans: Insurance is the legal contract where two parties agree that if something
will happen, a value will be exchanged.
Q: What's the difference between pure risk and speculative risk?
Ans: Pure risk is when you'll lose it all or there will be no change. Speculative
Exampromax - Stuvia US
risk you can either win or lose.
Q: What is peril?
Ans: peril is the causes of loss insured against in an insurance policy
Q: What is hazard?
Ans: conditions that increase the probability of something bad happening
Q: What's the diff between moral, morale, and physical hazard?
Ans: physical is the hazard that results from physical body issues. Moral hazard
is the evaluation of character (lying) morale hazard is an indifference which
causes risk.
Q: What is the law of large numbers?
Ans: the larger the number of people more exposed to risk, the more predictable
the risk outcome.
Q: What is an insurable event?
Ans: the more predictable an event, the more insurable it becomes
Q: What's the diff between contract and tort law
, 2 Exampromax - Stuvia US
Ans: tort is non-contract and private
Q: Four major elements of a contract
Ans: agreement, consideration, competent parties, legal purpose
Q: contract of adhesion
Ans: prepared by insurer then accepted or rejected
Q: Conditional contract
Ans: conditions need to be met in order for contract to be executed
Q: aleatory contract
Exampromax - Stuvia US
Ans: exchange of unequal amounts of value
Q: unilateral contract
Ans: only one party is forced to do something
Q: personal contract
Ans: can't be transferred w/out notifying insurer
Q: When can you rescind a contract
Ans: intentional or unintentional concealment, violation of material warranty,
false material representation
Q: six specifications for insurance policies
Ans: parties contracted
person insured
statement of insurable interest
risks insured against
time period
stated premium
Q: 4 categories of info necessary for financial planning
CA Life and Health Exam Questions and
Answers 100% Correct Answers Already
Graded A+
Q: What is insurance?
Ans: Insurance is the legal contract where two parties agree that if something
will happen, a value will be exchanged.
Q: What's the difference between pure risk and speculative risk?
Ans: Pure risk is when you'll lose it all or there will be no change. Speculative
Exampromax - Stuvia US
risk you can either win or lose.
Q: What is peril?
Ans: peril is the causes of loss insured against in an insurance policy
Q: What is hazard?
Ans: conditions that increase the probability of something bad happening
Q: What's the diff between moral, morale, and physical hazard?
Ans: physical is the hazard that results from physical body issues. Moral hazard
is the evaluation of character (lying) morale hazard is an indifference which
causes risk.
Q: What is the law of large numbers?
Ans: the larger the number of people more exposed to risk, the more predictable
the risk outcome.
Q: What is an insurable event?
Ans: the more predictable an event, the more insurable it becomes
Q: What's the diff between contract and tort law
, 2 Exampromax - Stuvia US
Ans: tort is non-contract and private
Q: Four major elements of a contract
Ans: agreement, consideration, competent parties, legal purpose
Q: contract of adhesion
Ans: prepared by insurer then accepted or rejected
Q: Conditional contract
Ans: conditions need to be met in order for contract to be executed
Q: aleatory contract
Exampromax - Stuvia US
Ans: exchange of unequal amounts of value
Q: unilateral contract
Ans: only one party is forced to do something
Q: personal contract
Ans: can't be transferred w/out notifying insurer
Q: When can you rescind a contract
Ans: intentional or unintentional concealment, violation of material warranty,
false material representation
Q: six specifications for insurance policies
Ans: parties contracted
person insured
statement of insurable interest
risks insured against
time period
stated premium
Q: 4 categories of info necessary for financial planning
