California Insurance Life Agent Combo Test Sample Questions & Answers 100% Correct

Risk is: a. the chance that might prove profitable. b. what everybody takes when dealing with insurance. c. an unknown loss. d. the uncertainty or chance of a loss occurring. - ANSWER-d. the uncertainty or chance of a loss occurring. When can a representation be altered or withdrawn? a. It can be altered or withdrawn before the insurance is issued. b. It can be altered or withdrawn after the insurance is issued. c. It can be altered or withdrawn while the insurance is being issued. d. It cannot be withdrawn but can be altered within the 30 day grace period. - ANSWER-a. It can be altered or withdrawn before the insurance is issued. The function of insurance is best described as: a. It's a form of legalized gambling. b. It's a pooling of diverse group of people who are exposed to risks that are not homogenous. c. It spreads financial risk over a large group so as to minimize the loss to any one individual. d. It protects against out living your financial resources. - ANSWER-c. It spreads financial risk over a large group so as to minimize the loss to any one individual. When large numbers of similar risks are combined in a group future claims become more a. Uncertain b. Measurable c. Catastrophic d. predictable - ANSWER-d. predictable