CA Insurance Exam Life, Accident, Sickness or Health Questions with complete solutions

The McCarran-Ferguson Act - ANSWER-Gave the States the right to regulate the majority of the Insurance Industry at the State level According to the insurance code, which of the following terms is mandatory? - ANSWER-Shall According to Proposition 103, the commissioner of insurance became an elected official. The commissioner may serve: - ANSWER-Two consecutive terms (8 Years) Any person capable of making a contract of insurance subject to the insurance code is: - ANSWER-An Insurer Which of the following best describes a broker? - ANSWER-A person who is NOT appointed by any insurer, but may receive compensation for the policies he/she places through the insurer and may charge the client a fee What describes an exclusive agent? - ANSWER-An agent who transacts for one insurer or a group of related insurers An insurance agent with a LIFE license can transact: A. Auto Insurance B. Life Insurance C. Homeowners Insurance D. All the Above - ANSWER-D. All the Above (only those with a P&C license can be called "an insurance agent" this is a trick question... this is a person who already has their p&c license AND their life license. Which of these best describes an "agent"? - ANSWER-one who is appointed by any number of insurers, receives commissions from them and transacts on their behalf