Exam Fx Ca life and Health ACTUAL EXAM 100%VERIFIED |complete
QUESTIONS AND ANSWERS | GRADED A+ 2026\2027
Insurance
- correct answer Contract whereby one undertakes to indemnify another against loss, damage, or liabilty
arising from a unknown event.
Insurer
- correct answer Any person capable of making a contract; subject to restrictions imposed by the CA
insurance code.
Speculative risk
- correct answer Chance of loss and potential for gain. This risk is not insurable.
Hazard
- correct answer Increase the risk.
Law of Large numbers
- correct answer The more similar risks the better they can guess approx. how many losses they have in
a given time period.
Loss exposure
- correct answer Situation the presents the possibility of a loss
Doctrine of upmost good faith states
- correct answer That all parities to the contract can rely upon statements of other parties.
Policy
- correct answer Written instrument in witch a contract is set forth
Premium
- correct answer Amount insured paid to the insurer for coverage.
,Rate
- correct answer Price of insurance for each exposure unit
Rate
- correct answer Cost per exposure unit
How to determine the amount the insured will pay
- correct answer Multiply the rate by the number of exposure units purchased.
express warranty
- correct answer Statement of fact in a policy of a matter relating to the person/thing insured
Warranty
- correct answer May be expressed or applied
Implied warranty
- correct answer Representation in an insurance contract
Representation pt1
- correct answer May be oral /written may be made @ time of/before the insurance policy
Representation is false when
- correct answer Facts fail to correspond with its stipulations
False representation on a signed claim
- correct answer May subject the insured to perjury
Concealment
- correct answer Party fails to communicate that witch a party knows and ought to communicate so the
other party can make a sound decision
,Concealment intentional / unintentional
- correct answer Entitles the injured party to rescind the contract.
Rescind a policy
- correct answer Void or cancel policy flat by returning all premiums to the insured. It is as if the policy
never existed no coverage applies.
Insurance applicant
- correct answer Individual who is applying to purchase insurance
Life insurance creates a
- correct answer Immediate estate upon death of insured in that the death benefit will be paid to the
beneficiary
Insurable Interest
- correct answer Must exist @ time if application
Key person life insurance
- correct answer Is used by a business to protect itself on case a valued employee dies. Death Benefit is
paid to the company to hire and train replacement.
Key person life insurance is tax
- correct answer Deductible but benefits are not taxable
Purchasing life insurance to fund a buy/sell agreement
- correct answer Is a business use not personal use
Under CIC all ads, policies for certificates of term life sold to those 55 yrs + must include a
- correct answer Term life insurance monetary value index
In event of an adverse underwriting decision the insurer or agent must
- correct answer Provide a individual with the specific reason for the decision and a summary of his/her
rights.
, Preferred Risk
- correct answer Exceptional body no health issues. Lowest risk
Preferred risk provides the lowest premium
- correct answer As they pose the least risk to insurer
MIB (medical info bureau)
- correct answer Is a source that gives past medical history of clients as reference to agent/underwriter
Medical info bureau required to report
- correct answer Medical impairments found during underwriting process
HIPPA rules establish
- correct answer National standards for the use and disclosure of protected health information
Life insurance policies do not contain a probationary period for
- correct answer Pre existing conditions
Applicant reveals medical conditions that require more info insurer will require
- correct answer attending physician report
Must have signed authorization to
- correct answer Request attending physician report
Agents commission
- correct answer Comes from the insurer expenses portion of premium charges
Employees covered by group policy
- correct answer Receive certificates of insurance as their proff of coverage
WET
- correct answer Whole , endowment , term insurance
QUESTIONS AND ANSWERS | GRADED A+ 2026\2027
Insurance
- correct answer Contract whereby one undertakes to indemnify another against loss, damage, or liabilty
arising from a unknown event.
Insurer
- correct answer Any person capable of making a contract; subject to restrictions imposed by the CA
insurance code.
Speculative risk
- correct answer Chance of loss and potential for gain. This risk is not insurable.
Hazard
- correct answer Increase the risk.
Law of Large numbers
- correct answer The more similar risks the better they can guess approx. how many losses they have in
a given time period.
Loss exposure
- correct answer Situation the presents the possibility of a loss
Doctrine of upmost good faith states
- correct answer That all parities to the contract can rely upon statements of other parties.
Policy
- correct answer Written instrument in witch a contract is set forth
Premium
- correct answer Amount insured paid to the insurer for coverage.
,Rate
- correct answer Price of insurance for each exposure unit
Rate
- correct answer Cost per exposure unit
How to determine the amount the insured will pay
- correct answer Multiply the rate by the number of exposure units purchased.
express warranty
- correct answer Statement of fact in a policy of a matter relating to the person/thing insured
Warranty
- correct answer May be expressed or applied
Implied warranty
- correct answer Representation in an insurance contract
Representation pt1
- correct answer May be oral /written may be made @ time of/before the insurance policy
Representation is false when
- correct answer Facts fail to correspond with its stipulations
False representation on a signed claim
- correct answer May subject the insured to perjury
Concealment
- correct answer Party fails to communicate that witch a party knows and ought to communicate so the
other party can make a sound decision
,Concealment intentional / unintentional
- correct answer Entitles the injured party to rescind the contract.
Rescind a policy
- correct answer Void or cancel policy flat by returning all premiums to the insured. It is as if the policy
never existed no coverage applies.
Insurance applicant
- correct answer Individual who is applying to purchase insurance
Life insurance creates a
- correct answer Immediate estate upon death of insured in that the death benefit will be paid to the
beneficiary
Insurable Interest
- correct answer Must exist @ time if application
Key person life insurance
- correct answer Is used by a business to protect itself on case a valued employee dies. Death Benefit is
paid to the company to hire and train replacement.
Key person life insurance is tax
- correct answer Deductible but benefits are not taxable
Purchasing life insurance to fund a buy/sell agreement
- correct answer Is a business use not personal use
Under CIC all ads, policies for certificates of term life sold to those 55 yrs + must include a
- correct answer Term life insurance monetary value index
In event of an adverse underwriting decision the insurer or agent must
- correct answer Provide a individual with the specific reason for the decision and a summary of his/her
rights.
, Preferred Risk
- correct answer Exceptional body no health issues. Lowest risk
Preferred risk provides the lowest premium
- correct answer As they pose the least risk to insurer
MIB (medical info bureau)
- correct answer Is a source that gives past medical history of clients as reference to agent/underwriter
Medical info bureau required to report
- correct answer Medical impairments found during underwriting process
HIPPA rules establish
- correct answer National standards for the use and disclosure of protected health information
Life insurance policies do not contain a probationary period for
- correct answer Pre existing conditions
Applicant reveals medical conditions that require more info insurer will require
- correct answer attending physician report
Must have signed authorization to
- correct answer Request attending physician report
Agents commission
- correct answer Comes from the insurer expenses portion of premium charges
Employees covered by group policy
- correct answer Receive certificates of insurance as their proff of coverage
WET
- correct answer Whole , endowment , term insurance
