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California Life, Accident, and Health Insurance Exam Practice Questions and Answers
1.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: A
ABC INSURANCE
2.A(N) INSURER IS AUTHORIZED TO WRITE
INSURANCE POLI- CIES IN A PARTICULAR STATE.
A
DOMESTIC
B
NON-ADMITTED 1 / 4
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C
FOREIGN
D
ADMITTED:
D ADMITTED
3.WHICH OF THE FOLLOWING IS CLASSIFIED AS AN INSURANCE
BRO- KER?
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: B
A PERSON WHO NEGOTIATES INSURANCE CONTRACTS ON BEHALF OF
AN INSURED 2 / 4
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4.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
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: C
EACH PARTY IS ENTITLED TO RELY UPON THE REPRESENTATIONS OF
THE OTHER THAT THERE IS NOTHING CONCEALED OR DISHONEST
5.WHICH OF THE FOLLOWING BEST DESCRIBES A CONTRACT OF
INDEM- NITY 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 AD-
JUSTING THE LOSS 3 / 4
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C
THE INSURED SUSTAINS A LOSS AS A RESULT OF THE LOSS: A
THE INSURED IS RESTORED TO THE SAME FINANCIAL CONDITION
AS PRIOR TO THE LOSS, WITH NO INTENT OF LOSS OR GAIN
6.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
INSUR- ANCE IS NOT AVAILABLE FROM AN ADMITTED CARRIER.
A
FACULTATIVE
B
DOMESTIC
C ALIEN D
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