WASHINGTONE LIFE AND HEALTH (DISABILITY) COMPLETE ACTUAL EXAM 3 REAL QUESTIONS AND CORRECT VERIFIED ANSWERS WITH RATIONALES (APPROVED SOLUTIONS) LATEST UPDATED VERSION

California Life Accident and Health Exam Practice
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1. A p


ABC INSURANCE: JOHN IS THE AGENT FOR ABC INSURANCE AND JANE IS TH
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INSURED. WHO IS THE PRINCIPAL IN THIS AGENCY RELATIONSHIP?
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A
ABC INSURANCEp p


B
JOHN p


C JAN
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EDN
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ONE
2. D p


ADMITTED: A(N) p p


INSURER IS AUTHORIZED TO WRITE INSURANCE p p p p p p


POLICIES IN A PARTICULAR STATE.
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A DOMESTI
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CB
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NON-
ADMITTED C p


FOREIGN p


D ADMITT
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ED
3. B p


A PERSON WHO NEGOTIATES INSURANCE CONTRACTS ON BEHALF OF AN IN
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SURED: WHICH OF THE FOLLOWING IS CLASSIFIED AS AN INSURANCE BROK
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R?
A
A PERSON WHO PLACES COVERAGE FOR HIS/HER OWN INSURANCE B
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A PERSON WHO NEGOTIATES INSURANCE CONTRACTS ON BEHALF OF AN IN
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URED
C
A PERSON IN THE HOME OFFICE WHO DOES NOT SOLICIT OUTSIDE OF THE OF
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ICE
D
AN EMPLOYEE WHO NEGOTIATES INSURANCE CONTRACTS FOR HIS/HER EM
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LOYER
4. C p


EACH PARTY IS ENTITLED TO RELY UPON THE REPRESENTATIONS OF THE
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, California Life Accident and Health Exam Practice
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OTHER THAT THERE IS NOTHING CONCEALED OR DISHONEST: THE INSUR-
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pANCE CONTRACT IS SAID TO BE A CONTRACT OF UTMOST GOOD FAITH, BEC
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AUSE:
A
CONCEALMENT OF KNOWN FACTS ON THE PART OF THE INSURED WILL VOID p p p p p p p p p p p


pTHE CONTRACT p


B
THE INSURER HAS DRAWN UP THE CONTRACT AND, THEREFORE, THERE IS NO
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INTENT TO DECEIVE p p


C
EACH PARTY IS ENTITLED TO RELY UPON THE REPRESENTATIONS OF THE OT
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ER THAT THERE IS NOTHING CONCEALED OR DISHONEST
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D
THE INSURED MUST WARRANT THAT HIS/HER REPRESENTATIONS ARE TRUE
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5. A p


THE INSURED IS RESTORED TO THE SAME FINANCIAL CONDITION AS PRI-
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pOR TO THE LOSS, WITH NO INTENT OF LOSS OR GAIN: WHICH OF THE FOLLO
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WING BEST DESCRIBES A CONTRACT OF INDEMNITY UNDER INSUR- ANCE?
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A
THE INSURED IS RESTORED TO THE SAME FINANCIAL CONDITION AS PRIOR TO
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THE LOSS, WITH NO INTENT OF LOSS OR GAIN
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B
THE INSURED INDEMNIFIES THE INSURER FOR ANY EXPENSES IN ADJUST-
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pING THE LOSS p p


C
THE INSURED SUSTAINS A LOSS AS A RESULT OF THE LOSS
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6. D p


SURPLUS: THE INSURED IS RESTORED TO A FINANCIAL CONDITION AS GOOD
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AS, OR BETTER THAN, THE INSURED WAS BEFORE THE LOSS
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INSURANCE IS USED TO PROVIDE COVERAGE WHEN INSUR- p p p p p p p


pANCE IS NOT AVAILABLE FROM AN ADMITTED CARRIER.
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A FACULTATIV
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EB p


DOMESTIC
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ALIEN




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, California Life Accident and Health Exam Practice
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D SURPL p


US
7. C p


PURE RISK: WHICH OF THE FOLLOWING RISKS IS PROTECTED BY INSUR-
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pANCE?
A
CERTAIN RISK p p


B
SPECULATIVE RISK p


pC
PURE RISK p p


D
INVOLUNTARY RISK p


8. A p


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


9. B p


ADMITTED: AN INSURER THAT IS AUTHORIZED TO DO BUSINESS IN A PAR-
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pTICULAR STATE IS SAID TO BE: p p p p p


A
NON-
ADMITTED B p


ADMITTED p


C DOMESTp


IC D FOREI p p


GN
10. C p


STOCK: WHICH INSURER'S OWNER RECEIVES TAXABLE CORPORATE DIVI-
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, California Life Accident and Health Exam Practice
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DENDS AS A RETURN OF PROFIT?
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A
MUTUAL
B
p


RECIPROCAL
C
p


STOCK
D
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FRATERNAL
11. B p


ACCORDING TO THE LAW OF LARGE NUMBERS: IN INSURANCE, WHEN THE N
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UMBER OF SIMILAR UNITS INCREASE, THE PREDICTABILITY OF THE LOSS IM
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PROVES:
A
BECAUSE OF THE SIMILARITY OF UNITS IN LARGE QUANTITIES B
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ACCORDING TO THE LAW OF LARGE NUMBERS C p p p p p p p


BECAUSE OF ACCUMULATED EXPERIENCE D
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ACCORDING TO THE LAW OF AVERAGES p p p p p


12. A p


A UNILATERAL CONTRACT: A CONTRACT WHEREBY ONLY ONE PARTY IS BOU
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ND TO FUTURE PERFORMANCE, IS SAID TO BE:
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A
A UNILATERAL CONTRACT
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B
A BILATERAL CONTRACT
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C
A CONDITIONAL CONTRACT
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D
AN ALEATORY CONTRACT
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13. A p


CAL-
GLBA: THE CALIFORNIA FINANCIAL INFORMATION PRIVACY ACT IS SOMETIM
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S KNOWN AS:p p


A
CAL-
GLBA B p


CA-FIPA



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