Life And Health Insurance Chapter 9 Exams Questions & Answers Graded A+

The California Insurance Code - ANSWER-The Insurance Code is the set of statutes enacted by the state legislature which regulate the business of insurance in California. The Commissioner does not have the authority to change the Insurance Code; only the state legislature has the authority to write or amend the Insurance Code. The Department of Insurance and the Insurance Commissioner are a primary source of consumer protection activities in California, and the general purpose of the Code is defined by the four broad "powers" conferred on the Commissioner and the Department of Insurance: ● Prevent insurer insolvency and prevent fraud in the conduct of the insurance business or by individuals. ● Insure that policies are reasonably priced and widely available in most lines of insurance. ● Establish procedures that guide the operation of insurance companies, and the activities of agents, brokers, and other licensees. ● Provide the authority needed by the Insurance Commissioner to oversee insurance agents and companies. Shall/May - ANSWER-As used in this Code the word "shall" is mandatory and the word "may" is permissive, unless otherwise apparent from the context. Natural Person - ANSWER-A living human being (as opposed to a business entity). Mailing as Proof of Notice - ANSWER-Any notice required to be given to an insured may be mailed, postage paid, and addressed to the policyowner, insured, claimant, or beneficiary to be notified at his/her last known address of record. The written notice may also be provided by electronic transmission if each party has agreed. The affidavit of the person who mails or transmits electronically the notice, stating the facts, is sufficient (prima facie) evidence that the notice was mailed. The policyowner is responsible for notifying the insurer of address changes including any change of email address. Insurer/Insured - ANSWER-The person who undertakes to indemnify another by insurance is the insurer, and the person indemnified is the insured. ● Any person capable of making a contract may be an insurer, subject to the restrictions imposed by this Code. ● Any person, except a public enemy, may be insured.