CA Life Insurance Exam Questions & Answers Already Graded A + | Updated 2024

What is meant by referring to an insurance policy as a unilateral contract? - Only one party makes a legally enforceable promise. When must insurance records of insurance agents and brokers be made available to the Insurance Commissioner? - At all times. Any situation that presents the possibility of a loss is known as - a loss exposure Which of the following information is not required to be communicated in a Life insurance contract? - Personal judgment. The direct distribution of insurance utilizes all of the following to promote the sale of insurance EXCEPT - telephone call from an agent. A contract in which one party promises to indemnify another against loss that arises from an unknown event is - an insurance policy. All of the occurrences listed below are examples of an insurable event as defined by the California Insurance Code EXCEPT - an insured suffers a financial loss in the state lottery All of the following statements about aleatory contracts are true EXCEPT - the insured and insurer contribute equally to the contract. All of the following would be considered unfair trade practices EXCEPT - 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? - Mary Brown Insurance Services.A contract of indemnity is one in which - one party is restored to the same financial position the party was in before the loss occurred. In insurance terminology, "indemnity" means - make whole. As defined in the California insurance Code, "insurance" is a - 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? - 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? - Fiduciary Which of the following statements regarding risk is TRUE? - Only pure risks are insurable. The purchase of an insurance policy may accomplish all of the following for the insured EXCEPT - the elimination of risk. Insureds are entitled to recover an amount NOT greater than the amount of their loss under the principle of - indemnity. What rule is used to determine the importance of a representation? - The materiality of concealment. The required contents of a policy include all of the following EXCEPT - the probability of loss All of the following are characteristics of reinsurance EXCEPT it - increases the unearned premium reserve.According to the California Insurance Code, an insurance policy must specify all of the following EXCEPT the - 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 - misdemeanor charges filed, not resulting in a conviction.