California Life Accident and Health
Exam Practice With Correct Answers
2023
A
ABC INSURANCE - Answer JOHN IS THE AGENT FOR ABC INSURANCE AND
JANE IS THE INSURED. WHO IS THE PRINCIPAL IN THIS AGENCY
RELATIONSHIP?
A
ABC INSURANCE
B
JOHN
C
JANE
D
NONE
D
ADMITTED - Answer A(N) ________ INSURER IS AUTHORIZED TO WRITE
INSURANCE POLICIES IN A PARTICULAR STATE.
A
DOMESTIC
B
NON-ADMITTED
C
FOREIGN
D
ADMITTED
B
A PERSON WHO NEGOTIATES INSURANCE CONTRACTS ON BEHALF OF AN
INSURED - Answer WHICH OF THE FOLLOWING IS CLASSIFIED AS AN
INSURANCE BROKER?
A
A PERSON WHO PLACES COVERAGE FOR HIS/HER OWN INSURANCE
B
A PERSON WHO NEGOTIATES INSURANCE CONTRACTS ON BEHALF OF AN
INSURED
C
A PERSON IN THE HOME OFFICE WHO DOES NOT SOLICIT OUTSIDE OF THE
OFFICE
D
AN EMPLOYEE WHO NEGOTIATES INSURANCE CONTRACTS FOR HIS/HER
EMPLOYER
C
EACH PARTY IS ENTITLED TO RELY UPON THE REPRESENTATIONS OF THE
OTHER THAT THERE IS NOTHING CONCEALED OR DISHONEST - Answer THE
INSURANCE CONTRACT IS SAID TO BE A CONTRACT OF UTMOST GOOD
FAITH, BECAUSE:
,California Life Accident and Health
Exam Practice With Correct Answers
2023
A
CONCEALMENT OF KNOWN FACTS ON THE PART OF THE INSURED WILL
VOID THE CONTRACT
B
THE INSURER HAS DRAWN UP THE CONTRACT AND, THEREFORE, THERE IS
NO INTENT TO DECEIVE
C
EACH PARTY IS ENTITLED TO RELY UPON THE REPRESENTATIONS OF THE
OTHER THAT THERE IS NOTHING CONCEALED OR DISHONEST
D
THE INSURED MUST WARRANT THAT HIS/HER REPRESENTATIONS ARE
TRUE
A
THE INSURED IS RESTORED TO THE SAME FINANCIAL CONDITION AS PRIOR
TO THE LOSS, WITH NO INTENT OF LOSS OR GAIN - Answer WHICH OF THE
FOLLOWING BEST DESCRIBES A CONTRACT OF INDEMNITY UNDER
INSURANCE?
A
THE INSURED IS RESTORED TO THE SAME FINANCIAL CONDITION AS PRIOR
TO THE LOSS, WITH NO INTENT OF LOSS OR GAIN
B
THE INSURED INDEMNIFIES THE INSURER FOR ANY EXPENSES IN
ADJUSTING THE LOSS
C
THE INSURED SUSTAINS A LOSS AS A RESULT OF THE LOSS
D
SURPLUS - Answer THE INSURED IS RESTORED TO A FINANCIAL CONDITION
AS GOOD AS, OR BETTER THAN, THE INSURED WAS BEFORE THE LOSS
___________ INSURANCE IS USED TO PROVIDE COVERAGE WHEN
INSURANCE IS NOT AVAILABLE FROM AN ADMITTED CARRIER.
A
FACULTATIVE
B
DOMESTIC
C
ALIEN
D
SURPLUS
C
PURE RISK - Answer WHICH OF THE FOLLOWING RISKS IS PROTECTED BY
INSURANCE?
A
CERTAIN RISK
,California Life Accident and Health
Exam Practice With Correct Answers
2023
B
SPECULATIVE RISK
C
PURE RISK
D
INVOLUNTARY RISK
A
WHEN ONE TAKES ACTION TO MINIMIZE THE SEVERITY OF A POTENTIAL
LOSS - Answer A GOOD EXAMPLE OF RISK REDUCTION MIGHT BE:
A
WHEN ONE TAKES ACTION TO MINIMIZE THE SEVERITY OF A POTENTIAL
LOSS
B
THE ELIMINATION OF THE EXPOSURE TO A SPECIFIC RISK
C
THE TRANSFER OF THE RISK TO AN INSURANCE COMPANY
D
INSURING ONLY THOSE RISKS THAT THREATEN THE FINANCIAL STABILITY
OF THE INSURED
B
ADMITTED - Answer AN INSURER THAT IS AUTHORIZED TO DO BUSINESS IN
A PARTICULAR STATE IS SAID TO BE:
A
NON-ADMITTED
B
ADMITTED
C
DOMESTIC
D
FOREIGN
C
STOCK - Answer WHICH INSURER'S OWNER RECEIVES TAXABLE
CORPORATE DIVIDENDS AS A RETURN OF PROFIT?
A
MUTUAL
B
RECIPROCAL
C
STOCK
D
FRATERNAL
B
, California Life Accident and Health
Exam Practice With Correct Answers
2023
ACCORDING TO THE LAW OF LARGE NUMBERS - Answer IN INSURANCE,
WHEN THE NUMBER OF SIMILAR UNITS INCREASE, THE PREDICTABILITY OF
THE LOSS IMPROVES:
A
BECAUSE OF THE SIMILARITY OF UNITS IN LARGE QUANTITIES
B
ACCORDING TO THE LAW OF LARGE NUMBERS
C
BECAUSE OF ACCUMULATED EXPERIENCE
D
ACCORDING TO THE LAW OF AVERAGES
A
A UNILATERAL CONTRACT - Answer A CONTRACT WHEREBY ONLY ONE
PARTY IS BOUND TO FUTURE PERFORMANCE, IS SAID TO BE:
A
A UNILATERAL CONTRACT
B
A BILATERAL CONTRACT
C
A CONDITIONAL CONTRACT
D
AN ALEATORY CONTRACT
A
CAL-GLBA - Answer THE CALIFORNIA FINANCIAL INFORMATION PRIVACY ACT
IS SOMETIMES KNOWN AS:
A
CAL-GLBA
B
CA-FIPA
C
CA-HIPAA
D
CA-FCRA
B
INSURER - Answer IN CALIFORNIA, ANY PERSON THAT MANUFACTURES AND
SELLS INSURANCE COVERAGE BY WAY OF INSURANCE POLICIES OR
CONTRACTS MAY BE AN:
A
INSURED
B
INSURER
C
AGENCY
Exam Practice With Correct Answers
2023
A
ABC INSURANCE - Answer JOHN IS THE AGENT FOR ABC INSURANCE AND
JANE IS THE INSURED. WHO IS THE PRINCIPAL IN THIS AGENCY
RELATIONSHIP?
A
ABC INSURANCE
B
JOHN
C
JANE
D
NONE
D
ADMITTED - Answer A(N) ________ INSURER IS AUTHORIZED TO WRITE
INSURANCE POLICIES IN A PARTICULAR STATE.
A
DOMESTIC
B
NON-ADMITTED
C
FOREIGN
D
ADMITTED
B
A PERSON WHO NEGOTIATES INSURANCE CONTRACTS ON BEHALF OF AN
INSURED - Answer WHICH OF THE FOLLOWING IS CLASSIFIED AS AN
INSURANCE BROKER?
A
A PERSON WHO PLACES COVERAGE FOR HIS/HER OWN INSURANCE
B
A PERSON WHO NEGOTIATES INSURANCE CONTRACTS ON BEHALF OF AN
INSURED
C
A PERSON IN THE HOME OFFICE WHO DOES NOT SOLICIT OUTSIDE OF THE
OFFICE
D
AN EMPLOYEE WHO NEGOTIATES INSURANCE CONTRACTS FOR HIS/HER
EMPLOYER
C
EACH PARTY IS ENTITLED TO RELY UPON THE REPRESENTATIONS OF THE
OTHER THAT THERE IS NOTHING CONCEALED OR DISHONEST - Answer THE
INSURANCE CONTRACT IS SAID TO BE A CONTRACT OF UTMOST GOOD
FAITH, BECAUSE:
,California Life Accident and Health
Exam Practice With Correct Answers
2023
A
CONCEALMENT OF KNOWN FACTS ON THE PART OF THE INSURED WILL
VOID THE CONTRACT
B
THE INSURER HAS DRAWN UP THE CONTRACT AND, THEREFORE, THERE IS
NO INTENT TO DECEIVE
C
EACH PARTY IS ENTITLED TO RELY UPON THE REPRESENTATIONS OF THE
OTHER THAT THERE IS NOTHING CONCEALED OR DISHONEST
D
THE INSURED MUST WARRANT THAT HIS/HER REPRESENTATIONS ARE
TRUE
A
THE INSURED IS RESTORED TO THE SAME FINANCIAL CONDITION AS PRIOR
TO THE LOSS, WITH NO INTENT OF LOSS OR GAIN - Answer WHICH OF THE
FOLLOWING BEST DESCRIBES A CONTRACT OF INDEMNITY UNDER
INSURANCE?
A
THE INSURED IS RESTORED TO THE SAME FINANCIAL CONDITION AS PRIOR
TO THE LOSS, WITH NO INTENT OF LOSS OR GAIN
B
THE INSURED INDEMNIFIES THE INSURER FOR ANY EXPENSES IN
ADJUSTING THE LOSS
C
THE INSURED SUSTAINS A LOSS AS A RESULT OF THE LOSS
D
SURPLUS - Answer THE INSURED IS RESTORED TO A FINANCIAL CONDITION
AS GOOD AS, OR BETTER THAN, THE INSURED WAS BEFORE THE LOSS
___________ INSURANCE IS USED TO PROVIDE COVERAGE WHEN
INSURANCE IS NOT AVAILABLE FROM AN ADMITTED CARRIER.
A
FACULTATIVE
B
DOMESTIC
C
ALIEN
D
SURPLUS
C
PURE RISK - Answer WHICH OF THE FOLLOWING RISKS IS PROTECTED BY
INSURANCE?
A
CERTAIN RISK
,California Life Accident and Health
Exam Practice With Correct Answers
2023
B
SPECULATIVE RISK
C
PURE RISK
D
INVOLUNTARY RISK
A
WHEN ONE TAKES ACTION TO MINIMIZE THE SEVERITY OF A POTENTIAL
LOSS - Answer A GOOD EXAMPLE OF RISK REDUCTION MIGHT BE:
A
WHEN ONE TAKES ACTION TO MINIMIZE THE SEVERITY OF A POTENTIAL
LOSS
B
THE ELIMINATION OF THE EXPOSURE TO A SPECIFIC RISK
C
THE TRANSFER OF THE RISK TO AN INSURANCE COMPANY
D
INSURING ONLY THOSE RISKS THAT THREATEN THE FINANCIAL STABILITY
OF THE INSURED
B
ADMITTED - Answer AN INSURER THAT IS AUTHORIZED TO DO BUSINESS IN
A PARTICULAR STATE IS SAID TO BE:
A
NON-ADMITTED
B
ADMITTED
C
DOMESTIC
D
FOREIGN
C
STOCK - Answer WHICH INSURER'S OWNER RECEIVES TAXABLE
CORPORATE DIVIDENDS AS A RETURN OF PROFIT?
A
MUTUAL
B
RECIPROCAL
C
STOCK
D
FRATERNAL
B
, California Life Accident and Health
Exam Practice With Correct Answers
2023
ACCORDING TO THE LAW OF LARGE NUMBERS - Answer IN INSURANCE,
WHEN THE NUMBER OF SIMILAR UNITS INCREASE, THE PREDICTABILITY OF
THE LOSS IMPROVES:
A
BECAUSE OF THE SIMILARITY OF UNITS IN LARGE QUANTITIES
B
ACCORDING TO THE LAW OF LARGE NUMBERS
C
BECAUSE OF ACCUMULATED EXPERIENCE
D
ACCORDING TO THE LAW OF AVERAGES
A
A UNILATERAL CONTRACT - Answer A CONTRACT WHEREBY ONLY ONE
PARTY IS BOUND TO FUTURE PERFORMANCE, IS SAID TO BE:
A
A UNILATERAL CONTRACT
B
A BILATERAL CONTRACT
C
A CONDITIONAL CONTRACT
D
AN ALEATORY CONTRACT
A
CAL-GLBA - Answer THE CALIFORNIA FINANCIAL INFORMATION PRIVACY ACT
IS SOMETIMES KNOWN AS:
A
CAL-GLBA
B
CA-FIPA
C
CA-HIPAA
D
CA-FCRA
B
INSURER - Answer IN CALIFORNIA, ANY PERSON THAT MANUFACTURES AND
SELLS INSURANCE COVERAGE BY WAY OF INSURANCE POLICIES OR
CONTRACTS MAY BE AN:
A
INSURED
B
INSURER
C
AGENCY
