Final Exam: California Life, Accident, and Health Insurance Questions & Answers highly rated

What is an insurance solicitor authorized to do? - ANSWER-Help an agent or broker sell insurance According to the California Insurance Code, what is "insurance"? - ANSWER-A contract What does a Hospital Confinement indemnity policy pay for? - ANSWER-Pay a specified daily amount while the insured is confined to a hospital According to the California Insurance Code, how is the word "may" interpreted? - ANSWER-Permissive Which statement is CORRECT when describing a contract of adhesion? - ANSWER-Contract may be accepted or rejected by the insured. Retirement plans are prevented from favoring highly compensated employees under which government regulation - ANSWER-Nondiscrimination When calculating life insurance premium rates, which component would an agent's commission fall under? - ANSWER-Insurer's expenses All of the following circumstances must be met for loss retention to be an effective risk management technique, EXCEPT - ANSWER-Probability of loss is unknown An insurance policy written after 1988 that fails to pass the seven-pay test is known as - ANSWER-a modified endowment contract All of these are reasons the Commissioner may disapprove a licensee's request to use a fictitious name EXCEPT - ANSWER-The name is the licensee's actual name