Life and Health License Exam Verified Answers 2024

Life and Health License Exam Verified Answers 2024 Only one party makes a legally enforceable promise What is meant by referring to an insurance policy as a unilateral contract? At all times When must insurance records of insurance agents and brokers be made available to the Insurance Commissioner? a loss exposure Any situation that presents the possibility of a loss is known as Personal judgment Which of the following information is not required to be communicated in a Life insurance contract? telephone call from an agent The direct distribution of insurance utilizes all of the following to promote the sale of insurance EXCEPT an insurance policy A contract in which one party promises to indemnify another against loss that arises from an unknown event is an insured suffers a financial loss in the state lottery All of the occurrences listed below are examples of an insurable event as defined by the California Insurance Code EXCEPT the insured and insurer contribute equally to the contract All of the following statements about aleatory contracts are true EXCEPT committing any act of discrimination whether it be deemed fair or unfair All of the following would be considered unfair trade practices EXCEPT Mary Brown Insurance Services 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 one party is restored to the same financial position the party was in before the loss occurred A contract of indemnity is one in which make whole In insurance terminology, "indemnity" means contract As defined in the California insurance Code, "insurance" is a A misdemeanor 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? Fiduciary 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? Only pure risks are insurable Which of the following statements regarding risk is TRUE? the elimination of risk The purchase of an insurance policy may accomplish all of the following for the insured EXCEPT indemnity Insureds are entitled to recover an amount NOT greater than the amount of their loss under the principle of The materiality of concealment What rule is used to determine the importance of a representation? the probability of loss The required contents of a policy include all of the following EXCEPT increases the unearned premium reserve All of the following are characteristics of reinsurance EXCEPT it financial rating of the insurer According to the California Insurance Code, an insurance policy must specify all of the following EXCEPT the misdemeanor charges filed, not resulting in a conviction All of the following qualify as "background information" as defined in Section 1729.2 of the California Insurance Code, EXCEPT probability of loss is unknown Loss retention is an effective risk management technique when all of the following conditions exist EXCEPT the speculative risk A situation in which there is a possibility of loss or a gain is a The greater the number insured, the more accurately the insurer can predict losses and set appropriate premiums Why is having a large number of similar exposure units important to insurers eliminates fraudulent losses All of the following are benefits of insurance EXCEPT it Life and health insurers Who are members of the Medical information Bureau? Underwriting The process by which an insurer decides whether to issue requested insurance is called Promise Unless it is merely a statement of an expectation or belief, a representation as to the future is considered which of the following? by interview appointment with the agent of record Upon notification of a claim, a claimant must be given access to the California Fair Claims Settlement Practices resolution by all of the following means EXCEPT Money an insured pays an insurer to obtain the benefits provided in the policy What is the definition of premium? to avoid selecting a disproportionate number of bad risks What is the goal of the underwriting