CALIFORNIA Life, Accident and Health final exam Questions with highest ratings

A moral hazard - ANSWER-is a dishonest person (lacking in morals) A morale hazard - ANSWER-a careless person. A peril - ANSWER-is a cause of loss Pure risk - ANSWER-is insurable & includes only a chance of loss. The highest premium - ANSWER-would be found with a substandard risk classification. Agent commissions - ANSWER-are an insurer expense "Insurance" - ANSWER-is a contract that transfers risk from one party to another. An "insurance policy" - ANSWER-is a written contract Neglect to communicate that which a party knows is "concealment" - ANSWER-may cause the injured party to rescind the policy "Materiality" - ANSWER-is determined solely by the probable and reasonable influence of the facts upon the part to whom the communication is due The "materiality of concealment" - ANSWER-is the rule used to determine the importance of the misrepresentation.