QUESTIONS AND ANSWERS 2025-2026
GUARANTEED PASS
whatKisKmeantKbyKreferringKtoKanKinsuranceKpolicyKasKaKunilateralKcontract?K-
KCORRECTKANSWERSonlyKoneKpartyKmakesKaKlegalKenforceableKpromise
whenKmustKinsuranceKrecordsKofKinsuranceKagentsKandKbrokersKbeKmadeKavailableKtoKtheKInsuranc
eKCommissioner?K-KCORRECTKANSWERSatKallKtimes
anyKsituationKthatKpresentsKtheKpossibilityKofKaKlossKisKknownKasKwhatK-
KCORRECTKANSWERSaKlossKexposure
whichKofKtheKfollowingKinformationKisKnotKrequiredKtoKbeKcommunicatedKinKaKlifeKinsuranceKcontra
ct?K-KCORRECTKANSWERSpersonalKjudgement
theKdirectKdistributionKofKinsuranceKutilizesKallKofKtheKfollowingKtoKpromoteKtheKsaleKofKinsuranceKE
XCEPTK-KCORRECTKANSWERStelephoneKcallKfromKanKagent
aKcontractKinKwhichKoneKpartKpromisesKtoKidentifyKanotherKagainstKlossKthatKarisesKfromKanKunkno
wnKeventKisK-KCORRECTKANSWERSanKinsuranceKpolicy
allKofKtheKoccurrencesKlistedKbelowKareKexamplesKofKanKinsurableKeventKasKdefinedKbyKtheKCaliforni
aKinsuranceKcodeKEXCEPTK-
KCORRECTKANSWERSanKinsuredKsuffersKfinancialKlossKinKtheKstateKlottery
allKofKtheKfollowingKstatementsKaboutKaleatoryKcontractsKareKtrueKEXCEPTK-
KCORRECTKANSWERStheKinsuredKandKinsurerKcontributeKequallyKtoKtheKcontract
,allKofKtheKfollowingKwouldKbeKconsideredKunfairKtradeKpracticesKEXCEPTK-
KCORRECTKANSWERScommittingKanyKactKofKdiscriminationKwhetherKitKbeKdeemedKfairKorKunfair
AsKauthorizedKbyKtheKCaliforniaKInsuranceKCode,KtheKInsuranceKCommissionerKhasKprovidedKstand
ardsKforKnamesKusedKbyKlifeKinsuranceKagents.KUnderKtheseKstandardsKwhich,KifKany,KofKtheKfollowi
ngKareKautomaticallyKacceptableKforKMaryKBrown,KaKholderKofKtheKCLUKdesignation?K-
KCORRECTKANSWERSMaryKbrownKinsuranceKservies
aKcontractKofKindemnityKisKoneKinKwhichK-
KCORRECTKANSWERSOneKpartyKisKrestoredKtoKtheKsameKfinancialKpositionKtheKpartyKwasKinKbeforeK
theKlossKoccurred
InKinsuranceKterminology,K"indemnity"KmeansK-KCORRECTKANSWERSmakeKwhole
AsKdefinedKinKtheKCaliforniaKinsuranceKCode,K"insurance"KisKaK-KCORRECTKANSWERScontract
WhatKwouldKaKpersonKbeKguiltyKofKwhoKrefusesKtoKdeliverKanyKbooks,Krecords,KorKassetsKtoKtheKco
mmissionerKonceKaKseizureKorderKhasKbeenKexecuted?K-KCORRECTKANSWERSaKmisdemeanor
AnKagentKwhoKisKactingKasKanKinsuranceKagent,Kbroker,Ksolicitor,KlifeKagent,KaccidentKandKhealth,KorK
bailKagentKactsKinKwhichKcapacityKwhenKhandlingKpremiumsKorKreturnKpremiumsKforKanKinsured?K-
KCORRECTKANSWERSfiduciary
whichKofKtheKfollowingKstatementKregardingKriskKisKTRUEK-
KCORRECTKANSWERSonlyKpureKrisksKareKinsurable
TheKpurchaseKofKanKinsuranceKpolicyKmayKaccomplishKallKofKtheKfollowingKforKtheKinsuredKEXCEPTK-
KCORRECTKANSWERStheKeliminationKofKrisk
, InsuredsKareKentitledKtoKrecoverKanKamountKNOTKgreaterKthanKtheKamountKofKtheirKlossKunderKtheK
principleKofK-KCORRECTKANSWERSindemnity
whatKruleKisKusedKtoKdetermineKtheKimportanceKofKaKrepresentation?K-
KCORRECTKANSWERStheKmaterialityKofKconcealment
theKrequiredKcontentsKofKaKpolicyKincludeKallKofKtheKfollowingKEXCEPTK-
KCORRECTKANSWERStheKpossibilityKofKloss
allKofKtheKfollowingKareKcharacteristicsKofKreinsuranceKEXCEPTK-
KCORRECTKANSWERSincreasesKtheKunearnedKpremiumKreserve
accordingKtoKtheKCaliforniaKinsuranceKcode,KanKinsuranceKpolicyKmustKspecifyKallKofKtheKfollowingKE
XEPTKtheK-KCORRECTKANSWERSfinancialKratingKofKtheKinsurer
AllKofKtheKfollowingKqualifyKasK"backgroundKinformation"KasKdefinedKinKSectionK1729.2KofKtheKCalif
orniaKInsuranceKCode,KEXCEPTK-
KCORRECTKANSWERSmisdemeanorKchargesKfiled,KnotKresultingKinKconviction
LossKretentionKisKanKeffectiveKriskKmanagementKtechniqueKwhenKallKofKtheKfollowingKconditionsKex
istKEXCEPTKtheK-KCORRECTKANSWERSprobabilityKofKlossKisKunknown
aKsituationKinKwhichKthereKisKaKpossibilityKofKlossKorKgainKisKaK-KCORRECTKANSWERSspeculativeKrisk
WhyKisKhavingKaKlargeKnumberKofKsimilarKexposureKunitsKimportantKtoKinsurers?K-
KCORRECTKANSWERStheKgreaterKtheKnumberKinsured,KtheKmoreKaccuratelyKtheKinsurerKcanKpredict
KlossesKandKsetKappropriateKpremiums