CALIFORNIA CA LIFE ACCIDENT AND HEALTH INSURANCE EXAM PRACTICE

CALIFORNIA CA LIFE ACCIDENT AND HEALTH INSURANCE EXAM PRACTICE a abc insurance - correct answer-john 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 - correct answer-a(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 - correct 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 - correct answer-the 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 - correct answer-which 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 - correct answer-the 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 - correct answer-which 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 - correct answer-a 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 - correct answer-an 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 - correct answer-which 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 - correct answer-in 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