CA LAWS and rules 50 Questions with 100% Correct Answers | Verified

How is an agent's first year commission calculated for a replacement long-term policy? - ️️Based on the difference between the new and original policy annual premiums According to section 1729.2 of the California Insurance Code, which of these does NOT qualify as "background information"? - ️️Misdemeanor charges filed, not resulting in a conviction ABC Insurance Company paid an insured $30,000 in lost wages, $35,000 for hospital costs, and $20,000 for physical therapy treatments. ABC later discovers this was a fraudulent claim. How much may the insured be fined? - ️️$170,000 The California Insurance Code requires that an insurer must have enough assets to cover its liabilities and for reinsurance of all outstanding risks. To remain solvent, it must also possess additional assets equal to what amount? - ️️Its paid-in capital Which entity has jurisdiction over health care coverage providers - ️️Department of Insurance According to the California Insurance Code, what term is used to describe a fact so important it could affect the policy premium? - ️️Materiality Which type of jurisdiction requires an insurer to have its rates accepted by the Insurance Department prior to using them? - ️️Prior approval According to PPACA, how long can an adult be covered as a dependent under their parents' insurance plan? - ️️Up to age 26 What does the term "indemnity" mean as it pertains to insurance? - ️️To make whole