CA Life insurAnCe exAm 2026 WiTH COrreCT ACTuAL
QuesTiOns AnD COrreCTLY WeLL DefineD AnsWers LATesT
ALreADY GrADeD A+
What is meant by referring to an insurance policy as a unilateral contract? - AnsWer-
Only one party makes a legally enforceable promise.
When must insurance records of insurance agents and brokers be made available to the
Insurance Commissioner? - AnsWer-At all times.
Any situation that presents the possibility of a loss is known as - AnsWer-a loss
exposure
Which of the following information is not required to be communicated in a Life
insurance contract? - AnsWer-Personal judgment.
The direct distribution of insurance utilizes all of the following to promote the sale of
insurance EXCEPT - AnsWer-telephone call from an agent.
A contract in which one party promises to indemnify another against loss that arises
from an unknown event is - AnsWer-an insurance policy.
All of the occurrences listed below are examples of an insurable event as defined by the
California Insurance Code EXCEPT - AnsWer-an insured suffers a financial loss in the
state lottery
All of the following statements about aleatory contracts are true EXCEPT - AnsWer-the
insured and insurer contribute equally to the contract.
,All of the following would be considered unfair trade practices EXCEPT - AnsWer-
committing any act of discrimination whether it be deemed fair or unfair.
As authorized by the California Insurance Code, the Insurance Commissioner has
provided standards for names used by life insurance agents. Under these standards
which, if any, of the following are automatically acceptable for Mary Brown, a holder of
the CLU designation? - AnsWer-Mary Brown Insurance Services.
A contract of indemnity is one in which - AnsWer-one party is restored to the same
financial position the party was in before the loss occurred.
In insurance terminology, "indemnity" means - AnsWer-make whole.
As defined in the California insurance Code, "insurance" is a - AnsWer-contract.
What would a person be guilty of who refuses to deliver any books, records, or assets to
the commissioner once a seizure order has been executed? - AnsWer-A misdemeanor
An agent who is acting as an insurance agent, broker, solicitor, life agent, accident and
health, or bail agent acts in which capacity when handling premiums or return premiums
for an insured? - AnsWer-Fiduciary
Which of the following statements regarding risk is TRUE? - AnsWer-Only pure risks are
insurable.
The purchase of an insurance policy may accomplish all of the following for the insured
EXCEPT - AnsWer-the elimination of risk.
Insureds are entitled to recover an amount NOT greater than the amount of their loss
under the principle of - AnsWer-indemnity.
What rule is used to determine the importance of a representation? - AnsWer-The
materiality of concealment.
, The required contents of a policy include all of the following EXCEPT - AnsWer-the
probability of loss
All of the following are characteristics of reinsurance EXCEPT it - AnsWer-increases the
unearned premium reserve.
According to the California Insurance Code, an insurance policy must specify all of the
following EXCEPT the - AnsWer-financial rating of the insurer.
All of the following qualify as "background information" as defined in Section 1729.2 of
the California Insurance Code, EXCEPT - AnsWer-misdemeanor charges filed, not
resulting in a conviction.
Loss retention is an effective risk management technique when all of the following
conditions exist EXCEPT the - AnsWer-probability of loss is unknown.
A situation in which there is a possibility of loss or a gain is a - AnsWer-speculative risk.
Why is having a large number of similar exposure units important to insurers? -
AnsWer-The greater the number insured, the more accurately the insurer can predict
losses and set appropriate premiums.
All of the following are benefits of insurance EXCEPT it - AnsWer-eliminates fraudulent
losses.
Who are members of the Medical information Bureau? - AnsWer-Life and health
insurers.
The process by which an insurer decides whether to issue requested insurance is called
- AnsWer-underwriting.
QuesTiOns AnD COrreCTLY WeLL DefineD AnsWers LATesT
ALreADY GrADeD A+
What is meant by referring to an insurance policy as a unilateral contract? - AnsWer-
Only one party makes a legally enforceable promise.
When must insurance records of insurance agents and brokers be made available to the
Insurance Commissioner? - AnsWer-At all times.
Any situation that presents the possibility of a loss is known as - AnsWer-a loss
exposure
Which of the following information is not required to be communicated in a Life
insurance contract? - AnsWer-Personal judgment.
The direct distribution of insurance utilizes all of the following to promote the sale of
insurance EXCEPT - AnsWer-telephone call from an agent.
A contract in which one party promises to indemnify another against loss that arises
from an unknown event is - AnsWer-an insurance policy.
All of the occurrences listed below are examples of an insurable event as defined by the
California Insurance Code EXCEPT - AnsWer-an insured suffers a financial loss in the
state lottery
All of the following statements about aleatory contracts are true EXCEPT - AnsWer-the
insured and insurer contribute equally to the contract.
,All of the following would be considered unfair trade practices EXCEPT - AnsWer-
committing any act of discrimination whether it be deemed fair or unfair.
As authorized by the California Insurance Code, the Insurance Commissioner has
provided standards for names used by life insurance agents. Under these standards
which, if any, of the following are automatically acceptable for Mary Brown, a holder of
the CLU designation? - AnsWer-Mary Brown Insurance Services.
A contract of indemnity is one in which - AnsWer-one party is restored to the same
financial position the party was in before the loss occurred.
In insurance terminology, "indemnity" means - AnsWer-make whole.
As defined in the California insurance Code, "insurance" is a - AnsWer-contract.
What would a person be guilty of who refuses to deliver any books, records, or assets to
the commissioner once a seizure order has been executed? - AnsWer-A misdemeanor
An agent who is acting as an insurance agent, broker, solicitor, life agent, accident and
health, or bail agent acts in which capacity when handling premiums or return premiums
for an insured? - AnsWer-Fiduciary
Which of the following statements regarding risk is TRUE? - AnsWer-Only pure risks are
insurable.
The purchase of an insurance policy may accomplish all of the following for the insured
EXCEPT - AnsWer-the elimination of risk.
Insureds are entitled to recover an amount NOT greater than the amount of their loss
under the principle of - AnsWer-indemnity.
What rule is used to determine the importance of a representation? - AnsWer-The
materiality of concealment.
, The required contents of a policy include all of the following EXCEPT - AnsWer-the
probability of loss
All of the following are characteristics of reinsurance EXCEPT it - AnsWer-increases the
unearned premium reserve.
According to the California Insurance Code, an insurance policy must specify all of the
following EXCEPT the - AnsWer-financial rating of the insurer.
All of the following qualify as "background information" as defined in Section 1729.2 of
the California Insurance Code, EXCEPT - AnsWer-misdemeanor charges filed, not
resulting in a conviction.
Loss retention is an effective risk management technique when all of the following
conditions exist EXCEPT the - AnsWer-probability of loss is unknown.
A situation in which there is a possibility of loss or a gain is a - AnsWer-speculative risk.
Why is having a large number of similar exposure units important to insurers? -
AnsWer-The greater the number insured, the more accurately the insurer can predict
losses and set appropriate premiums.
All of the following are benefits of insurance EXCEPT it - AnsWer-eliminates fraudulent
losses.
Who are members of the Medical information Bureau? - AnsWer-Life and health
insurers.
The process by which an insurer decides whether to issue requested insurance is called
- AnsWer-underwriting.
