CA LIFE ACCIDENT AND HEALTH EXAM 2024 ACTUAL
EXAM COMPLETE 150 QUESTIONS WITH DETAILED
VERIFIED ANSWERS (100% CORRECT) / ALREADY
GRADED A+
Insurance is defined as? - Correct Answer - A contract whereby one undertakes to
indemnify another against loss, damage, or liability arising from a contingent or
unknown event.
Licensees must notify the Commissioner in writing within ______ days of the date they
learn of change in their background information. - Correct Answer - 30
An insurance agent means? - Correct Answer - a person authorized by and on behalf of
an insurer, to transact all types of insurance other than life, disability or health insurance
An insurance broker means? - Correct Answer - a person who, for compensation and on
behalf of another person transacts insurance other than life insurance, but not on behalf
of an insurer
An insurance broker is required to maintain the required? - Correct Answer - surety
bond and disclose in a written agreement signed by their client the amount of all broker
fees being charged
An insurance solicitor is a ? - Correct Answer - natural person employed to aid an agent
or broker transacting insurance, other than life or health insurance
A life licensee is a ? - Correct Answer - person authorized to act on behalf of a life or
disability insurer to transact life insurance, accident and health insurance, or life and
accident and health insurance
pg. 1
,A life settlement broker is a ? - Correct Answer - person who, on behalf of a policy
owner, offers to negotiate the sale of the owner's life insurance policy to a life settlement
provider
The _______ requires agents to always place their customer's interest first. - Correct
Answer - code of ethics
The __________ and the ________ identify many unethical and/or illegal practices, but
they are NOT a complete guide to ethical behavior. - Correct Answer - California
Insurance Code (CIC)
California Code of Regulations (CCR)
Agents shall not sue or authorize the use of _______ to obtain information in connection
with an insurance transaction? - Correct Answer - pretext interviews
________ may be used for the purpose of investigating a claim where there is a
reasonable basis for suspecting criminal activity, fraud or material misrepresentation -
Correct Answer - Pretext interviews
_____________ are not required to participate in any of the Insurance Guarantee
Funds that were created by CA law to pay the claims of insolvent (bankrupt) insurers. -
Correct Answer - Surplus lines
A ___________ may place insurance with a non-admitted insurer only if insurance
cannot be procured from admitted insurers in this state. - Correct Answer - Surplus lines
________ cannot be written for the purpose of obtaining a rate lower than the lowest
rate charged by an admitted insurer. - Correct Answer - Surplus lines
Surplus line brokers must conduct a diligent search among admitted insurers before
placing the coverage with a non-admitted insurer. T/F - Correct Answer - T
pg. 2
, A diligent search among admitted insurers considered to have been made if ______ -
Correct Answer - 3 admitted insurers have declined the risk
Surplus lines must post a _________________ as condition of licensure? - Correct
Answer - surety bond in favor of the people of this state in the sum of $50,000 as a
condition of licensure
Can an insurance solicitor represent more than 1 agent or broker? - Correct Answer -
Yes
Is their such a thing as a life or health insurance broker? - Correct Answer - No
Surplus lines brokers shall annually by ________ pay to the commissioner a premium
tax of ______ of their gross premiums written. - Correct Answer - March 1st
3%
Any person capable of making a contract may be an insurer, subject to the restrictions
imposed by the ________ - Correct Answer - CA Insurance Code
A life settlement brokers represent? - Correct Answer - only the owner and owe a
fiduciary duty to the owner to act according to their instructions.
Errors & omissions insurance protects?
It does not cover? - Correct Answer - agents against legal liability resulting from
negligence errors and omissions.
Fraudulent, dishonest or criminal acts.
It is a misdemeanor for a person to act as an agent for a non-admitted insurer except for
a ? - Correct Answer - surplus lines broker
pg. 3
EXAM COMPLETE 150 QUESTIONS WITH DETAILED
VERIFIED ANSWERS (100% CORRECT) / ALREADY
GRADED A+
Insurance is defined as? - Correct Answer - A contract whereby one undertakes to
indemnify another against loss, damage, or liability arising from a contingent or
unknown event.
Licensees must notify the Commissioner in writing within ______ days of the date they
learn of change in their background information. - Correct Answer - 30
An insurance agent means? - Correct Answer - a person authorized by and on behalf of
an insurer, to transact all types of insurance other than life, disability or health insurance
An insurance broker means? - Correct Answer - a person who, for compensation and on
behalf of another person transacts insurance other than life insurance, but not on behalf
of an insurer
An insurance broker is required to maintain the required? - Correct Answer - surety
bond and disclose in a written agreement signed by their client the amount of all broker
fees being charged
An insurance solicitor is a ? - Correct Answer - natural person employed to aid an agent
or broker transacting insurance, other than life or health insurance
A life licensee is a ? - Correct Answer - person authorized to act on behalf of a life or
disability insurer to transact life insurance, accident and health insurance, or life and
accident and health insurance
pg. 1
,A life settlement broker is a ? - Correct Answer - person who, on behalf of a policy
owner, offers to negotiate the sale of the owner's life insurance policy to a life settlement
provider
The _______ requires agents to always place their customer's interest first. - Correct
Answer - code of ethics
The __________ and the ________ identify many unethical and/or illegal practices, but
they are NOT a complete guide to ethical behavior. - Correct Answer - California
Insurance Code (CIC)
California Code of Regulations (CCR)
Agents shall not sue or authorize the use of _______ to obtain information in connection
with an insurance transaction? - Correct Answer - pretext interviews
________ may be used for the purpose of investigating a claim where there is a
reasonable basis for suspecting criminal activity, fraud or material misrepresentation -
Correct Answer - Pretext interviews
_____________ are not required to participate in any of the Insurance Guarantee
Funds that were created by CA law to pay the claims of insolvent (bankrupt) insurers. -
Correct Answer - Surplus lines
A ___________ may place insurance with a non-admitted insurer only if insurance
cannot be procured from admitted insurers in this state. - Correct Answer - Surplus lines
________ cannot be written for the purpose of obtaining a rate lower than the lowest
rate charged by an admitted insurer. - Correct Answer - Surplus lines
Surplus line brokers must conduct a diligent search among admitted insurers before
placing the coverage with a non-admitted insurer. T/F - Correct Answer - T
pg. 2
, A diligent search among admitted insurers considered to have been made if ______ -
Correct Answer - 3 admitted insurers have declined the risk
Surplus lines must post a _________________ as condition of licensure? - Correct
Answer - surety bond in favor of the people of this state in the sum of $50,000 as a
condition of licensure
Can an insurance solicitor represent more than 1 agent or broker? - Correct Answer -
Yes
Is their such a thing as a life or health insurance broker? - Correct Answer - No
Surplus lines brokers shall annually by ________ pay to the commissioner a premium
tax of ______ of their gross premiums written. - Correct Answer - March 1st
3%
Any person capable of making a contract may be an insurer, subject to the restrictions
imposed by the ________ - Correct Answer - CA Insurance Code
A life settlement brokers represent? - Correct Answer - only the owner and owe a
fiduciary duty to the owner to act according to their instructions.
Errors & omissions insurance protects?
It does not cover? - Correct Answer - agents against legal liability resulting from
negligence errors and omissions.
Fraudulent, dishonest or criminal acts.
It is a misdemeanor for a person to act as an agent for a non-admitted insurer except for
a ? - Correct Answer - surplus lines broker
pg. 3
