LIFE INSURANCE CERTIFICATION
EVALUATION EXAMINATION TEST PAPER
COMPLETE ANSWERS
●● 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.
EVALUATION EXAMINATION TEST PAPER
COMPLETE ANSWERS
●● 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.
