Exam (elaborations)
CA Life, Accident, & Health Practice Exam Questions and answers
- Course
- Institution
CA Life, Accident, & Health Practice Exam Questions and answers
[Show more]
Content preview
CA Life, Accident, & Health PracticeExam Questions and answers
Why would a large manufacturer choose to self-insure rather than buy an insurance policy
II II II II II II II II II II II II II
from an insurance company? - to save insurance premiums by paying relatively minor
II II II II II II II II II II II II II II
losses out of company funds
II II II II II
The federal Risk Retention Act of 1986 contains guidelines for which of the following
II II II II II II II II II II II II II II
entities? - Risk retention groups
II II II II II II
Which of the following is an example of an unauthorized insurance company in Illinois? -
II II II II II II II II II II II II II II II II
Company B, an Iowa-based company that does not hold a certificate of authority in Illinois
II II II II II II II II II II II II II II II
and sells products that are not approved by the Illinois insurance department
II II II II II II II II II II II II
Which insurance company function calculates company mortality and morbidity rates as
II II II II II II II II II II II
well as the dividends on participating life insurance policies? - Actuarial Division
II II II II II II II II II II II II II
The purpose for the Buyer's Guide, which must be given to every insurance prospect in
II II II II II II II II II II II II II II II
the first meeting with a producer, is to: - explain the general features, benefits, and
II II II II II II II II II II II II II II II II
conditions of the type of insurance being considered
II II II II II II II II
The purpose for the Policy Summary, which must be given to every insurance applicant
II II II II II II II II II II II II II II
before an application is signed, is to: - provide buyers with details of the specific
II II II II II II II II II II II II II II II II
insurance contract they are considering for purchase
II II II II II II II
The main purpose for errors and omissions insurance (E&O) is to: - cover damages that
II II II II II II II II II II II II II II II II
arise due to services a producer non-willfully failed to render
II II II II II II II II II II
(does not protect against willful misconduct, and will not protect the producer who willfully
II II II II II II II II II II II II II
engages in an unfair trade practice)
II II II II II II
Though not specifically cited in the producer's contract, the producer is expected to
II II II II II II II II II II II II II
telephone prospects on the insurer's behalf to arrange sales appointments. This is an
II II II II II II II II II II II II II
example of what kind of producer authority? - implied authority
II II II II II II II II II II II
Jerry owns a life insurance policy with premiums payable directly to the insurer's home
II II II II II II II II II II II II II II
office. However, for the past five years Jerry has sent his payments to his agent, who then
II II II II II II II II II II II II II II II II II
forwards them to the insurer. The insurer had accepted this arrangement but then tries to
II II II II II II II II II II II II II II II
cancel Jerry's policy when it learns he had died while the premium was being forwarded
II II II II II II II II II II II II II II II
by the agent. The insurer will probably not be able to cancel the policy in this case
II II II II II II II II II II II II II II II II II
because of which of the following legal principles?
II II II II II II II II
misrepresentation II
waiver II
,estoppel II
fraud - estoppel II II II
(In this case, the insurance company has allowed Jerry to send payments to his agent
II II II II II II II II II II II II II II
instead of directly to the home office for more than five years. As a result, the insurer has
II II II II II II II II II II II II II II II II II II
given up its right to have payments sent to the home office. The insurer is estopped from
II II II II II II II II II II II II II II II II II
later asserting its right to receive direct payment.)
II II II II II II II II
An applicant for a $500,000 whole life insurance policy pays the initial premium along with
II II II II II II II II II II II II II II II
his application. In this case, what has the applicant done?
II II II II II II II II II II
accepted an offer from the insurer II II II II II
made a counteroffer to the insurer II II II II II
accepted a counteroffer from the insurer II II II II II
made an offer to the insurer - made an offer to the insurer
II II II II II II II II II II II II II
Ambiguities in an insurance contract are most often interpreted in favor of the policyowner
II II II II II II II II II II II II II II
because insurance contracts are:
II II II II
unilateral
conditional
contracts of adhesion II II
aleatory - contracts of adhesion II II II II II
For a life insurance contract to be enforceable, which of the following parties must be
II II II II II II II II II II II II II II II
legally competent?
II II
insurer
applicant, insurer, and beneficiary II II II
applicant and insurer II II
applicant - applicant and insurer II II II II II
II Specific to California, what does the term "twenty-four hour coverage" refer to?
II II II II II II II II II II II
-joint issue of a workers' compensation policy with non-occupational health insurance
II II II II II II II II II II
coverage
II
-a policy that is guaranteed to be issued within 24 hours of application
II II II II II II II II II II II II
-coverage that applies to personal property, such as a home or automobile II II II II II II II II II II II
-long-term care insurance - joint issue of a workers' compensation policy with non-
II II II II II II II II II II II II II
occupational health insurance coverage II II II
II Which of the following entities regulates the business of insurance in California?
II II II II II II II II II II II
the National Association of Insurance Commissioners
II II II II II
the state government
II II
the state and the federal governments
II II II II II
,the federal government - the state and federal governments
II II II II II II II II II
(In addition to state authority, the business of insurance—to the extent it affects or is
II II II II II II II II II II II II II II
associated with interstate commerce—is also regulated by the federal government under
II II II II II II II II II II II
Title 18 of the U.S. Code.)
II II II II II II
In California, which of the following statements is correct regarding the state's insurance
II II II II II II II II II II II II II
Commissioner?
II
He or she is appointed by the Governor.
II II II II II II II
He or she is mainly an advocate for licensed insurance companies and their interests.
II II II II II II II II II II II II II
He or she serves terms of six years.
II II II II II II II
He or she is an elected official. - He or she is an elected official
II II II II II II II II II II II II II II II
(The people of the state of California elect the Insurance Commissioner for four-year
II II II II II II II II II II II II
terms. He or she is mainly an advocate for insurance consumers.)
II II II II II II II II II II II
II In California, the state's Insurance Commissioner
II II II II II
serves terms of six years. II II II II
is mainly an advocate for licensed insurance companies and their interests.
II II II II II II II II II II
is appointed by the Governor.
II II II II
is an elected official. - is an elected official
II II II II II II II II II
Which of the following best defines the main purpose of the California Department of
II II II II II II II II II II II II II II
Insurance?
II
to protect the interests of California insurance consumers
II II II II II II II
to set forth and pass insurance laws and regulations
II II II II II II II II
to serve as an advocate for California insurance companies and insurance licensees
II II II II II II II II II II II
to serve as a lobbyist for the interests of California insurance companies and the
II II II II II II II II II II II II II
insurance business at the federal level - to protect the interests of California insurance
II II II II II II II II II II II II II II II
consumers
II
(The main purpose of the California Department of Insurance is to serve as an advocate
II II II II II II II II II II II II II II
for insurance consumers and to protect their needs and interests. It administers and
II II II II II II II II II II II II II
enforces the laws that the state legislature passes. Through its enforcement capabilities,
II II II II II II II II II II II II
the Department also advances the interests of certified insurers and licensed producers;
II II II II II II II II II II II II
however, it does not actively lobby for the industry at the federal level.)
II II II II II II II II II II II II II
II In California, the insurance business is regulated by which of the following?
II II II II II II II II II II II
National Association of Insurance Commissioners II II II II
State and federal government II II II
State government II
Federal government - State and federal government
II II II II II II II
, (In addition to state authority, the business of insurance—to the extent it affects or is
II II II II II II II II II II II II II II
associated with interstate commerce—is also regulated by the federal government under
II II II II II II II II II II II
Title 18 of the U.S. Code.)
II II II II II II
Being admitted to operate as an insurer and to transact one or more lines of insurance in
II II II II II II II II II II II II II II II II II
California is
II II
automatically granted to any entity if it is admitted in at least one other state. II II II II II II II II II II II II II II
evidenced by a certificate of authority. II II II II II
limited to entities organized as stock insurers.
II II II II II II
restricted to organizations domiciled in California. - evidenced by a certificate of authority.
II II II II II II II II II II II II II
(Only those persons or entities that have been admitted to act as an insurer may transact
II II II II II II II II II II II II II II II
insurance business in California. Admission is secured by receiving a certificate of
II II II II II II II II II II II II
authority from the California Commissioner of Insurance.)
II II II II II II II
The prohibition against and penalty for acting on behalf of a non-admitted insurer does
II II II II II II II II II II II II II II
not apply to whom?
II II II II
licensed solicitors II
licensed life agents II II
licensed disability agents II II
licensed surplus lines brokers - licensed surplus lines brokers II II II II II II II II II
II A primary insurer is the insurer that
II II II II II II
is domiciled in California but is certified to transact insurance in other states.
II II II II II II II II II II II II
accepts ceding business and assumes a part of another insurer's loss exposure.
II II II II II II II II II II II
writes only one line of coverage. II II II II II
transfers its loss exposure to another insurer in a reinsurance transaction. - transfers its
II II II II II II II II II II II II II II
loss exposure to another insurer in a reinsurance transaction.
II II II II II II II II II
(A primary insurer is the insurer that transfers part of its liability or exposure to another
II II II II II II II II II II II II II II II
insurer in a reinsurance transaction.)
II II II II II
Which of the following statements is correct about authorization to act as an insurer in
II II II II II II II II II II II II II II II
California?
II
Authority is limited to entities organized as stock insurers. II II II II II II II II
Authority is evidenced by a certificate of authority. II II II II II II II
Only organizations domiciled in California can be authorized.
II II II II II II II
Authority is automatically granted to any entity if it is admitted in at least one other state. -
II II II II II II II II II II II II II II II II II II
Authority is evidenced by a certificate of authority.
II II II II II II II II
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller STUVATE. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
76449 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now