CA LIFE AND HEALTH INSURANCE
EXAM 3 LATEST VERSIONS (VERSION
A, B AND C) 2024-2025 ACTUAL EXAM
350 QUESTIONS AND CORRECT
DETAILED ANSWERS
As authorized by the California Insurance Code, the
Insurance Commissioner has provided standards for
names used by life insurance agents. Under these
standards which, if any, of the following are automatically
acceptable for Mary Brown, a holder of the CLU
designation? - CORRECT ANSWERS ✅Mary Brown
Insurance Services.
When must insurance records of insurance agents and
brokers be made available to the Insurance
Commissioner? - CORRECT ANSWERS ✅At all times.
Any situation that presents the possibility of a loss is
known as - CORRECT ANSWERS ✅a loss exposure
Which of the following information is not required to be
communicated in a Life insurance contract? - CORRECT
ANSWERS ✅Personal judgment.
,CA LIFE AND HEALTH INSURANCE
EXAM 3 LATEST VERSIONS (VERSION
A, B AND C) 2024-2025 ACTUAL EXAM
350 QUESTIONS AND CORRECT
DETAILED ANSWERS
The direct distribution of insurance utilizes all of the
following to promote the sale of insurance EXCEPT -
CORRECT ANSWERS ✅telephone call from an agent.
A contract in which one party promises to indemnify
another against loss that arises from an unknown event is
- CORRECT ANSWERS ✅an insurance policy.
All of the occurrences listed below are examples of an
insurable event as defined by the California Insurance
Code EXCEPT - CORRECT ANSWERS ✅an insured
suffers a financial loss in the state lottery
What is meant by referring to an insurance policy as a
unilateral contract? - CORRECT ANSWERS ✅Only
one party makes a legally enforceable promise.
All of the following statements about aleatory contracts
are true EXCEPT - CORRECT ANSWERS ✅the insured
and insurer contribute equally to the contract.
,CA LIFE AND HEALTH INSURANCE
EXAM 3 LATEST VERSIONS (VERSION
A, B AND C) 2024-2025 ACTUAL EXAM
350 QUESTIONS AND CORRECT
DETAILED ANSWERS
All of the following would be considered unfair trade
practices EXCEPT - CORRECT ANSWERS
✅committing any act of discrimination whether it be
deemed fair or unfair.
A contract of indemnity is one in which - CORRECT
ANSWERS ✅one party is restored to the same
financial position the party was in before the loss
occurred.
In insurance terminology, "indemnity" means - CORRECT
ANSWERS ✅make whole.
As defined in the California insurance Code, "insurance" is
a - CORRECT ANSWERS ✅contract.
What would a person be guilty of who refuses to deliver
any books, records, or assets to the commissioner once a
seizure order has been executed? - CORRECT ANSWERS
✅A misdemeanor
, CA LIFE AND HEALTH INSURANCE
EXAM 3 LATEST VERSIONS (VERSION
A, B AND C) 2024-2025 ACTUAL EXAM
350 QUESTIONS AND CORRECT
DETAILED ANSWERS
An agent who is acting as an insurance agent, broker,
solicitor, life agent, accident and health, or bail agent
acts in which capacity when handling premiums or return
premiums for an insured? - CORRECT ANSWERS
✅Fiduciary
Which of the following statements regarding risk is TRUE?
- CORRECT ANSWERS ✅Only pure risks are
insurable.
The purchase of an insurance policy may accomplish all
of the following for the insured EXCEPT - CORRECT
ANSWERS ✅the elimination of risk.
Insureds are entitled to recover an amount NOT greater
than the amount of their loss under the principle of -
CORRECT ANSWERS ✅indemnity.
What rule is used to determine the importance of a
representation? - CORRECT ANSWERS ✅The
materiality of concealment.
EXAM 3 LATEST VERSIONS (VERSION
A, B AND C) 2024-2025 ACTUAL EXAM
350 QUESTIONS AND CORRECT
DETAILED ANSWERS
As authorized by the California Insurance Code, the
Insurance Commissioner has provided standards for
names used by life insurance agents. Under these
standards which, if any, of the following are automatically
acceptable for Mary Brown, a holder of the CLU
designation? - CORRECT ANSWERS ✅Mary Brown
Insurance Services.
When must insurance records of insurance agents and
brokers be made available to the Insurance
Commissioner? - CORRECT ANSWERS ✅At all times.
Any situation that presents the possibility of a loss is
known as - CORRECT ANSWERS ✅a loss exposure
Which of the following information is not required to be
communicated in a Life insurance contract? - CORRECT
ANSWERS ✅Personal judgment.
,CA LIFE AND HEALTH INSURANCE
EXAM 3 LATEST VERSIONS (VERSION
A, B AND C) 2024-2025 ACTUAL EXAM
350 QUESTIONS AND CORRECT
DETAILED ANSWERS
The direct distribution of insurance utilizes all of the
following to promote the sale of insurance EXCEPT -
CORRECT ANSWERS ✅telephone call from an agent.
A contract in which one party promises to indemnify
another against loss that arises from an unknown event is
- CORRECT ANSWERS ✅an insurance policy.
All of the occurrences listed below are examples of an
insurable event as defined by the California Insurance
Code EXCEPT - CORRECT ANSWERS ✅an insured
suffers a financial loss in the state lottery
What is meant by referring to an insurance policy as a
unilateral contract? - CORRECT ANSWERS ✅Only
one party makes a legally enforceable promise.
All of the following statements about aleatory contracts
are true EXCEPT - CORRECT ANSWERS ✅the insured
and insurer contribute equally to the contract.
,CA LIFE AND HEALTH INSURANCE
EXAM 3 LATEST VERSIONS (VERSION
A, B AND C) 2024-2025 ACTUAL EXAM
350 QUESTIONS AND CORRECT
DETAILED ANSWERS
All of the following would be considered unfair trade
practices EXCEPT - CORRECT ANSWERS
✅committing any act of discrimination whether it be
deemed fair or unfair.
A contract of indemnity is one in which - CORRECT
ANSWERS ✅one party is restored to the same
financial position the party was in before the loss
occurred.
In insurance terminology, "indemnity" means - CORRECT
ANSWERS ✅make whole.
As defined in the California insurance Code, "insurance" is
a - CORRECT ANSWERS ✅contract.
What would a person be guilty of who refuses to deliver
any books, records, or assets to the commissioner once a
seizure order has been executed? - CORRECT ANSWERS
✅A misdemeanor
, CA LIFE AND HEALTH INSURANCE
EXAM 3 LATEST VERSIONS (VERSION
A, B AND C) 2024-2025 ACTUAL EXAM
350 QUESTIONS AND CORRECT
DETAILED ANSWERS
An agent who is acting as an insurance agent, broker,
solicitor, life agent, accident and health, or bail agent
acts in which capacity when handling premiums or return
premiums for an insured? - CORRECT ANSWERS
✅Fiduciary
Which of the following statements regarding risk is TRUE?
- CORRECT ANSWERS ✅Only pure risks are
insurable.
The purchase of an insurance policy may accomplish all
of the following for the insured EXCEPT - CORRECT
ANSWERS ✅the elimination of risk.
Insureds are entitled to recover an amount NOT greater
than the amount of their loss under the principle of -
CORRECT ANSWERS ✅indemnity.
What rule is used to determine the importance of a
representation? - CORRECT ANSWERS ✅The
materiality of concealment.
