Examfx Life and Health Insurance Questions with complete solutions

According to the California Insurance Code, an "Insurance broker" is - ANSWER-compensated for transacting insurance on behalf of another person with an insurer. The California Code of Regulations governing claim settlement practices prohibits all of the following acts of unfair discrimination EXCEPT denial of claim based on - ANSWER-Reckless behavior If an insurer must have its raters accepted by the insurance department prior to using them, the insurer would be operating in which of the following types of jurisdictions? - ANSWER-Prior approval All of the following are requirements of a contract EXCEPT - ANSWER-there must be equal consideration between the parties. The more times an event is repeated, the more predictable the outcome becomes. This is an example of - ANSWER-The law of large numbers What rule is used to determine the importance of a representation? - ANSWER-The materiality of concealment Insurer expenses include all of the following EXCEPT - ANSWER-Policy Premiums The increase in the probability of a loss resulting from an insureds dishonest tendencies is known as - ANSWER-Moral hazard Which of the following would an agent be guilty of her misrepresenting the amount of dividends a policy will pay? - ANSWER-a Misdemeanor