CA Life Insurance Exam Questions and 100% CORRECT answers

What is meant by referring to an insurance policy as a unilateral contract? - ANSWEROnly one party makes a legally enforceable promise. When must insurance records of insurance agents and brokers be made available to the Insurance Commissioner? - ANSWERAt all times. Any situation that presents the possibility of a loss is known as - ANSWERa loss exposure Which of the following information is not required to be communicated in a Life insurance contract? - ANSWERPersonal judgment. The direct distribution of insurance utilizes all of the following to promote the sale of insurance EXCEPT - ANSWERtelephone call from an agent. A contract in which one party promises to indemnify another against loss that arises from an unknown event is - ANSWERan insurance policy. All of the occurrences listed below are examples of an insurable event as defined by the California Insurance Code EXCEPT - ANSWERan insured suffers a financial loss in the state lottery All of the following statements about aleatory contracts are true EXCEPT - ANSWERthe insured and insurer contribute equally to the contract. All of the following would be considered unfair trade practices EXCEPT - ANSWERcommitting any act of discrimination whether it be deemed fair or unfair. 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? - ANSWERMary Brown Insurance Services. A contract of indemnity is one in which - ANSWERone party is restored to the same financial position the party was in before the loss occurred. In insurance terminology, "indemnity" means - ANSWERmake whole. As defined in the California insurance Code, "insurance" is a - ANSWERcontract. 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? - ANSWERA misdemeanor 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? - ANSWERFiduciary Which of the following statements regarding risk is TRUE? - ANSWEROnly pure risks are insurable. The purchase of an insurance policy may accomplish all of the following for the insured EXCEPT - ANSWERthe elimination of risk. Insureds are entitled to recover an amount NOT greater than the amount of their loss under the principle of - ANSWERindemnity. What rule is used to determine the importance of a representation? - ANSWERThe materiality of concealment. The required contents of a policy include all of the following EXCEPT - ANSWERth