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California Life Accident and Health Exam Practice/ 353 Questions with Verified Answers/
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California Life Accident and Health Exam Practice/ 353 Questions with Verified Answers/
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California Life Accident and Health ExamPractice/ 353 Questions with Verified
Answers/ 2024-2025
John is the agent for abc insurance and jane is the insured. who is the principal in this agency
relationship?
a
abc insurance
b
john
c
jane
d
none - Answer: a
abc insurance
a(n) ________ insurer is authorized to write insurance policies in a particular state.
Page 1 of 159
,a
domestic
b
non-admitted
c
foreign
d
admitted - Answer: d
admitted
which of the following is classified as an insurance broker?
a
a person who places coverage for his/her own insurance
b
a person who negotiates insurance contracts on behalf of an insured
c
a person in the home office who does not solicit outside of the office
d
an employee who negotiates insurance contracts for his/her employer - Answer: b
a person who negotiates insurance contracts on behalf of an insured
the insurance contract is said to be a contract of utmost good faith, because:
a
concealment of known facts on the part of the insured will void the contract
b
the insurer has drawn up the contract and, therefore, there is no intent to deceive
Page 2 of 159
,c
each party is entitled to rely upon the representations of the other that there is nothing
concealed or dishonest
d
the insured must warrant that his/her representations are true - Answer: c
each party is entitled to rely upon the representations of the other that there is nothing
concealed or dishonest
which of the following best describes a contract of indemnity under insurance?
a
the insured is restored to the same financial condition as prior to the loss, with no intent of loss
or gain
b
the insured indemnifies the insurer for any expenses in adjusting the loss
c
the insured sustains a loss as a result of the loss - Answer: a
the insured is restored to the same financial condition as prior to the loss, with no intent of loss
or gain
the insured is restored to a financial condition as good as, or better than, the insured was before
the loss
___________ insurance is used to provide coverage when insurance is not available from an
admitted carrier.
a
facultative
b
domestic
c
Page 3 of 159
, alien
d
surplus - Answer: d
surplus
which of the following risks is protected by insurance?
a
certain risk
b
speculative risk
c
pure risk
d
involuntary risk - Answer: c
pure risk
a good example of risk reduction might be:
a
when one takes action to minimize the severity of a potential loss
b
the elimination of the exposure to a specific risk
c
the transfer of the risk to an insurance company
d
insuring only those risks that threaten the financial stability of the insured - Answer: a
when one takes action to minimize the severity of a potential loss
Page 4 of 159
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