California Life, Accident, and Health Insurance Final
Exam
1. A moral hazard: is a dishonest person (lacking in morals)
2. A morale hazard: a careless person.
3. A peril: is a cause of loss
4. Pure risk: is insurable & includes only a chance of loss.
5. The highest premium: would be found with a substandard risk
classification.
6. Agent commissions: are an insurer expense
7. "Insurance": is a contract that transfers risk from one party to another.
8. An "insurance policy": is a written contract
9. Neglect to communicate that which a party knows is "concealment":
maycause the injured party
,to rescind the policy
10. "Materiality": is determined solely by the probable and reasonable
influenceof the facts upon the part
to whom the communication is due
11. The "materiality of concealment": is the rule used to determine the
impor-tance of the
misrepresentation.
12. An insurance policy: must specify the parties between whom the
contract ismade
13. The financial rating of an insurer: is not required to be included
in theinsurance policy
14. In a direct response marketing system: the mail and/or internet is
used tosell policies, not agents
15. An insurance broker is a person who: for compensation and on
behalf ofanother person, transacts
insurance.
16. An insurance agent is a person who: for compensation, transacts
,insurancefor the insurer.
17. An insurance solicitor: is a person employed by an insurance agent or
brokerto aid in insurance
transactions
18. A person can always use their legal name: to transact insurance
, 19. The state may disapprove the use of any true or fictitious name
except: aperson's legal name
20. An insurance agent or broker hires a third party to prepare their
website-
: The insurance agent or
broker, not the third party, is responsible for the content of the website.
21. An admitted insurer: is an insurer entitled to transact business in this
state
22. A mutual insurer: is owned by the policyholders and issues
participatingpolicies
23. The Insurance Commissioner in California: is elected by the people.
24. The Insurance Commissioner may serve: up to two (2) four-year terms
25. A mutual insurer must pay out: dividends at minimum annually.
26. An insurance policy: is a legal contract.
27. A representation in an insurance contract: is an implied warranty
28. Concealment, whether intentional or unintentional, entitles the
Exam
1. A moral hazard: is a dishonest person (lacking in morals)
2. A morale hazard: a careless person.
3. A peril: is a cause of loss
4. Pure risk: is insurable & includes only a chance of loss.
5. The highest premium: would be found with a substandard risk
classification.
6. Agent commissions: are an insurer expense
7. "Insurance": is a contract that transfers risk from one party to another.
8. An "insurance policy": is a written contract
9. Neglect to communicate that which a party knows is "concealment":
maycause the injured party
,to rescind the policy
10. "Materiality": is determined solely by the probable and reasonable
influenceof the facts upon the part
to whom the communication is due
11. The "materiality of concealment": is the rule used to determine the
impor-tance of the
misrepresentation.
12. An insurance policy: must specify the parties between whom the
contract ismade
13. The financial rating of an insurer: is not required to be included
in theinsurance policy
14. In a direct response marketing system: the mail and/or internet is
used tosell policies, not agents
15. An insurance broker is a person who: for compensation and on
behalf ofanother person, transacts
insurance.
16. An insurance agent is a person who: for compensation, transacts
,insurancefor the insurer.
17. An insurance solicitor: is a person employed by an insurance agent or
brokerto aid in insurance
transactions
18. A person can always use their legal name: to transact insurance
, 19. The state may disapprove the use of any true or fictitious name
except: aperson's legal name
20. An insurance agent or broker hires a third party to prepare their
website-
: The insurance agent or
broker, not the third party, is responsible for the content of the website.
21. An admitted insurer: is an insurer entitled to transact business in this
state
22. A mutual insurer: is owned by the policyholders and issues
participatingpolicies
23. The Insurance Commissioner in California: is elected by the people.
24. The Insurance Commissioner may serve: up to two (2) four-year terms
25. A mutual insurer must pay out: dividends at minimum annually.
26. An insurance policy: is a legal contract.
27. A representation in an insurance contract: is an implied warranty
28. Concealment, whether intentional or unintentional, entitles the
