California Life Accident and Health Exam Practice Questions With Complete Solutions

California Life Accident and Health Exam
Practice Questions With Complete
Solutions
A
ABC INSURANCE - AnswerJOHN IS THE AGENT FOR ABC INSURANCE AND JANE
IS THE INSURED. WHO IS THE PRINCIPAL IN THIS AGENCY RELATIONSHIP?
A
ABC INSURANCE
B
JOHN
C
JANE
D
NONE

.D
ADMITTED - AnswerA(N) ________ INSURER IS AUTHORIZED TO WRITE
INSURANCE POLICIES IN A PARTICULAR STATE.
A
DOMESTIC
B
NON-ADMITTED
C
FOREIGN
D
ADMITTED

.B
A PERSON WHO NEGOTIATES INSURANCE CONTRACTS ON BEHALF OF AN
INSURED - AnswerWHICH OF THE FOLLOWING IS CLASSIFIED AS AN
INSURANCE BROKER?
A
A PERSON WHO PLACES COVERAGE FOR HIS/HER OWN INSURANCE
B
A PERSON WHO NEGOTIATES INSURANCE CONTRACTS ON BEHALF OF AN
INSURED
C
A PERSON IN THE HOME OFFICE WHO DOES NOT SOLICIT OUTSIDE OF THE
OFFICE
D
AN EMPLOYEE WHO NEGOTIATES INSURANCE CONTRACTS FOR HIS/HER
EMPLOYER

,.C
EACH PARTY IS ENTITLED TO RELY UPON THE REPRESENTATIONS OF THE
OTHER THAT THERE IS NOTHING CONCEALED OR DISHONEST - AnswerTHE
INSURANCE CONTRACT IS SAID TO BE A CONTRACT OF UTMOST GOOD FAITH,
BECAUSE:
A
CONCEALMENT OF KNOWN FACTS ON THE PART OF THE INSURED WILL VOID
THE CONTRACT
B
THE INSURER HAS DRAWN UP THE CONTRACT AND, THEREFORE, THERE IS
NO INTENT TO DECEIVE
C
EACH PARTY IS ENTITLED TO RELY UPON THE REPRESENTATIONS OF THE
OTHER THAT THERE IS NOTHING CONCEALED OR DISHONEST
D
THE INSURED MUST WARRANT THAT HIS/HER REPRESENTATIONS ARE TRUE

.A
THE INSURED IS RESTORED TO THE SAME FINANCIAL CONDITION AS PRIOR
TO THE LOSS, WITH NO INTENT OF LOSS OR GAIN - AnswerWHICH OF THE
FOLLOWING BEST DESCRIBES A CONTRACT OF INDEMNITY UNDER
INSURANCE?
A
THE INSURED IS RESTORED TO THE SAME FINANCIAL CONDITION AS PRIOR
TO THE LOSS, WITH NO INTENT OF LOSS OR GAIN
B
THE INSURED INDEMNIFIES THE INSURER FOR ANY EXPENSES IN ADJUSTING
THE LOSS
C
THE INSURED SUSTAINS A LOSS AS A RESULT OF THE LOSS

.D
SURPLUS - AnswerTHE INSURED IS RESTORED TO A FINANCIAL CONDITION AS
GOOD AS, OR BETTER THAN, THE INSURED WAS BEFORE THE LOSS
___________ INSURANCE IS USED TO PROVIDE COVERAGE WHEN INSURANCE
IS NOT AVAILABLE FROM AN ADMITTED CARRIER.
A
FACULTATIVE
B
DOMESTIC
C
ALIEN
D
SURPLUS

,.C
PURE RISK - AnswerWHICH OF THE FOLLOWING RISKS IS PROTECTED BY
INSURANCE?
A
CERTAIN RISK
B
SPECULATIVE RISK
C
PURE RISK
D
INVOLUNTARY RISK

.A
WHEN ONE TAKES ACTION TO MINIMIZE THE SEVERITY OF A POTENTIAL LOSS
- AnswerA GOOD EXAMPLE OF RISK REDUCTION MIGHT BE:
A
WHEN ONE TAKES ACTION TO MINIMIZE THE SEVERITY OF A POTENTIAL LOSS
B
THE ELIMINATION OF THE EXPOSURE TO A SPECIFIC RISK
C
THE TRANSFER OF THE RISK TO AN INSURANCE COMPANY
D
INSURING ONLY THOSE RISKS THAT THREATEN THE FINANCIAL STABILITY OF
THE INSURED

.B
ADMITTED - AnswerAN INSURER THAT IS AUTHORIZED TO DO BUSINESS IN A
PARTICULAR STATE IS SAID TO BE:
A
NON-ADMITTED
B
ADMITTED
C
DOMESTIC
D
FOREIGN

.C
STOCK - AnswerWHICH INSURER'S OWNER RECEIVES TAXABLE CORPORATE
DIVIDENDS AS A RETURN OF PROFIT?
A
MUTUAL
B
RECIPROCAL
C
STOCK

, D
FRATERNAL

.B
ACCORDING TO THE LAW OF LARGE NUMBERS - AnswerIN INSURANCE, WHEN
THE NUMBER OF SIMILAR UNITS INCREASE, THE PREDICTABILITY OF THE
LOSS IMPROVES:
A
BECAUSE OF THE SIMILARITY OF UNITS IN LARGE QUANTITIES
B
ACCORDING TO THE LAW OF LARGE NUMBERS
C
BECAUSE OF ACCUMULATED EXPERIENCE
D
ACCORDING TO THE LAW OF AVERAGES

.A
A UNILATERAL CONTRACT - AnswerA CONTRACT WHEREBY ONLY ONE PARTY
IS BOUND TO FUTURE PERFORMANCE, IS SAID TO BE:
A
A UNILATERAL CONTRACT
B
A BILATERAL CONTRACT
C
A CONDITIONAL CONTRACT
D
AN ALEATORY CONTRACT

.A
CAL-GLBA - AnswerTHE CALIFORNIA FINANCIAL INFORMATION PRIVACY ACT IS
SOMETIMES KNOWN AS:
A
CAL-GLBA
B
CA-FIPA
C
CA-HIPAA
D
CA-FCRA

.B
INSURER - AnswerIN CALIFORNIA, ANY PERSON THAT MANUFACTURES AND
SELLS INSURANCE COVERAGE BY WAY OF INSURANCE POLICIES OR
CONTRACTS MAY BE AN:
A
INSURED