CA Life & Health with Ethics & Code Terms Exam Questions & Answers 100% Accurate

Under the California Financial Information Privacy Act, what must consumers be advised of? - ANSWER-A financial institution has authority to share their personal financial information Which term describes the probability of loss? - ANSWER-Risk Elements of an insurable risk do not include: - ANSWER-Catastrophic perils Which of the following is the correct term to describe a contract prepared by one party and submitted to the other party on a take it or leave it basis, without negotiations? - ANSWER-Contract of Adhesion The idea that there are always some insureds (risks) that are less desirable than average risks, and that these insureds tend to seek or continue insurance coverage to a greater extent than better risks is termed: - ANSWER-Adverse selection Which statement is true of the Law of Large Numbers? - ANSWER-As the number of insured unites increases, predictability of losses improves An insurer organized in another state than the state in which it is authorized to do business is known as which type of insurer? - ANSWER-Foreign In order for an insurance policy to be issued, the insured must have: - ANSWER-An Insurable interest with the policyowner An insurer authorized to transact insurance in a particular state by that state's insurance department is known as: - ANSWER-An admitted insurer All of the following are recognized classes of insurance in California, except: - ANSWER-Medicare Supplement