52 HOUR CALIFORNIA LIFE, ACCIDENT AND HEALTH COURSE QUESTIONS WITH CORRECT SOLUTIONS

#8Question #121859 When an insurer can no longer meet its financial obligations when they are due, the insurer is considered to be: - ANSWER-Correct Answer: Insolvent Explanation: Insolvency means any impairment of required minimum paid-in capital or the inability of the insurer to meet its financial obligations when they are due. #9Question #121863 An appointment as an agent of an insurer becomes effective on the date it is: - ANSWER-Correct Answer: Signed by the insurer Explanation: The authority to transact insurance given to a licensee by an insurer by appointment shall be effective as of the date the notice of appointment is signed by the insurer. #10Question #121855 Under the California Insurance Code (CIC), neither party to a contract of insurance is bound to communicate any of the following EXCEPT: - ANSWER-Correct Answer: Information known to be material Explanation: Each party of a contract of insurance shall communicate to the other, in good faith, all facts within their knowledge which are or which they believe to be material to the contract.