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California Life, Accident, and Health Insurance Final Exam Questions and Answers
1.A moral hazard: is a dishonest person (lacking in morals)
2.A morale hazard: a careless person.
3.A peril: is a cause of loss
4.Pure risk: is insurable & includes only a chance of loss.
5.The highest premium: would be found with a substandard risk
classification.
6.Agent commissions: are an insurer expense
7."Insurance": is a contract that transfers risk from one party to
another.
8.An "insurance policy": is a written contract
9.Neglect to communicate that which a party knows is "concealment":
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to rescind the policy
10."Materiality": is determined solely by the probable and reasonable
influence of the facts upon the part to whom the communication is due 11.The "materiality of concealment": is the rule used to determine the impor- tance of the misrepresentation.
12.An insurance policy: must specify the parties between whom the
contract is made
13.The financial rating of an insurer: is not required to be included
in the insurance policy
14.In a direct response marketing system: the mail and/or internet is
used to sell policies, not agents
15.An insurance broker is a person who: for compensation and on
behalf of another person, transacts insurance.
16.An insurance agent is a person who: for compensation, transacts
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17.An insurance solicitor: is a person employed by an insurance agent
or broker to aid in insurance transactions 18.A person can always use their legal name: to transact insurance
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