Final Exam - California Life Only Questions with complete solutions

According to the California Insurance Code, what is "insurance"? - ANSWER-A contract Which of these statements correctly describes risk? - ANSWER-Pure risk is the only insurable risk Only pure risks are insurable Which of the following does NOT have to be included on life insurance policy illustrations? - ANSWER-Statement that all values and benefits are guaranteed An agent's attempt to stop the replacement of an existing life insurance policy is known as - ANSWER-conservation If a material warranty violation on the part of the insured is found, what recourse does an insurer have? - ANSWER-Rescind the policy Which of the following pieces of information is NOT gathered during the personal financial planning process? - ANSWER-An individual's civic organization memberships Which of the following does the California Insurance Code NOT require an insurance policy to specify? - ANSWER-Insurer's financial rating What is an "insurance broker" according to California Insurance Code? - ANSWER-A person compensated for transacting insurance on behalf of another person with an insurer The objective of underwriting is to - ANSWER-avoid selecting a disproportionate number of bad risks