CA LIFE HEALTH INSURANCE EXAM

PDF Download CA LIFE & HEALTH INSURANCE EXAM Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -43 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: speculative

Answer:

Wagering on a sporting event is known as what type of risk?

Question 2: When the policy is delivered and the premium is paid

Answer:

When does an insurance policy go into effect?

Question 3: Loss must be

1) due to chance 2) definite and measurable 3) statistically predictable 4) not catastrophic 5) coverage cannot be mandatory.

Answer:

What are the five characteristics of an ideally insurable risk?

Question 4: mutual company

Answer:

The type of insurance company organized to return any surplus money to its policyholders is known as what?

Question 5: Pure

Answer:

What type of risk is insurable?

Question 6: Insurer

Answer:

When agents act within the scope of their contract, their actions will be assumed to be the acts of whom?

Question 7: authorized or admitted

Answer:

If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered what type of insurer?

Question 8: The agent's

Answer:

Whose responsibility is it to determine that all the questions on an insurance application are answered?

Question 9: express, implied, apparent

Answer:

What are the three types of agent authority?

Question 10: uncertainty of loss

Answer:

For the purpose of insurance, what is risk?

Question 11: stockholders

Answer:

Who owns stock companies

Question 12: Send the application back to the applicant for signature

Answer:

If an agent fails to obtain the applicant's signature on the insurance application, what must the insurer do?

Question 13: stock company

Answer:

The insurer organized to retunr a profit to the stockholders is what type of insurer?Question 14: Restriction of coverage, refusal to accept a risk, and accepting a risk at a higher rate

Answer:

What are the strategies used by underwriters to prevent adverse selection?

Question 15: agent or producer

Answer:

According to the Law of Agency, a principal is represented by whom?

Question 16: Insurer

Answer:

In the agent/insurer relationship, who is considered the principal?

Question 17: The agent

Answer:

If an applicant does not receive his or her insurance policy, who would be held responsible?

Question 18: Physical, Moral, Morale

Answer:

What are the three types of hazards?

Question 19: Insurers

Answer:

What entities make up the Medical Information Bureau?

Question 20: When the insurance application is submitted

Answer:

In insurance, when is the offer usually made on a contract?

Question 21: Peril

Answer:

What is the term for the causes of loss insured against in an insurance policy?

Question 22: Alien

Answer:

What type of insurer is formed under the laws of another country?Question 23: Agreement (offer and acceptance), consideration, competent parties, and legal purpose

Answer:

What are the four elements of an insurance contract?

Question 24: pure risk

Answer:

A situation in which a person can only experience a loss and no gain presents what type of risk?

Question 25: foreign

Answer:

An insurance company that is formed under the laws of another state is known as what type of insurer?

Question 26: Fiduciary

Answer:

The requirement that agents must account for an promptly remit all insurance funds collected is known as what type of agent responsibility?Question 27: Complete a new application or ask the applicant to initial correction on the original application

Answer:

When a change needs to be made on the application for insurance, which is the best method for correcting the information?