California code and ethics

The Standard Fire Policy would provide coverage in which of these cases?

Fire

24 hour coverage includes health insurance and

Workers compensation insurance

Insurance is the

transfer of risk

According to California Insurance Code, Which of the following can be classified as an insurable event?

Pure risks

According to the California Insurance Code, which of the following can be classified as an insurable event?

Pure risks

Which of the following insurers are owned by stockholders?

Stock

All of the following statements are TRUE regarding the California Earthquake Authority (CEA) EXCEPT

The CEA is authorized to transact insurance to sell residential earthquake and any other insurance coverage as necessary

Which of the following is NOT covered under Plan A in Medigap insurance?

The Medicare Part A deductible

Which of the following has established guidelines to ensure that insurance companies and their agents promote their products properly and accurately, without exaggerating the benefits or minimizing the drawbacks?

The NAIC Model Act

Which of the following would be considered the most important factor in determining the rates and premiums for an applicant for an auto policy?

The applicant's driving record

Which of the following is not a factor in determining rates charged by the California State Compensation Insurance Fund for insurance issued by it?

The extent to which the employees in a particular establishment have or have not persons dependent on them for support

Which of the following information would NOT be included in property insurance policies?

The insured's address

Which of the following best describes the insurers liability for losses arising from military service?

The insurer's liability may be reduced or excluded

On all printed documents placed before the public, what size print should be used for the agent's license number?

The same sizes print as the agent's address or telephone number

An employer is on the verge of bankruptcy. To save money, the employer decides to cancel its workers compensation plan. Which of the following is true?

This business may be closed under a cease and desist order issued by the Dept. of Industrial Relations

Which of the following best describes the term "24 hour coverage" in relation to workers compensation insurance?

This represents a two-pronged coverage: workers compensation during work hours and regular medical coverage outside of work

Which type of insurance guarantees or indemnifies owners of real or personal property or the holders of liens or other interested parties against loss or damage suffered to said property?

Title insurance

What is the purpose of California's State Compensation Fund (SCIF)

To make workers compensation insurance available, especially to smaller companies with more limits payrolls

A type of policy that is used to provide a specific amount of replacement cost for a given risk after an insured property has been destroyed is called a(n)

Valued policy

A representation cannot qualify

an express provision in a contract of insurance; but it may qualify an implied warranty

When an insurer cancels an automobile insurance policy for a reason other than nonpayment of premium, the insurer must meet all of the following requirements EXCEPT

offer the insured to renew the policy at a different rate

Representations

statements believed to be true. Insured's statements on the application are representations

Insurance is a contract by

which one seeks to protects another from loss

In 2010, a law firm purchases a buy-sell agreement policy on each of its partners. In 2015, one partner left to start a new practice; however, the firm continued to pay the premiums on the policy. In 2017, the former partner died. The partners of the firm filed a claim on the policy to collect the death benefit despite the fact that the deceased was NOT part of the firm or its leadership. The insurer

will pay the death claim to the beneficiary for this policy as written since insurable interest existed at the time of application

The notice to senior consumers regarding their right to cancel a policy must be printed on the cover or policy jacket in at least what type of print?

12 point bold print

How many long term care policies can be sold to an insured within a 12-month period before the number of policies is considered to be unnecessary?

2

The rate charged for a Good Driver Discount policy should be at least what percent below the rate the the insured would otherwise have been charged for the same coverage?

20%

Bob is covered by workers compensation insurance. His employer has also included a major medical plan as part of his benefit package, so Bob is also covered by insurance outside of working hours, as well. Which insurance term best describes this arrangement?

24-hour coverage

What is the limiting age for dependent children of the insured employee in a group life plan (other than disabled child

26

All life and disability policies issued to individuals who are age 65 or older must offer a right-to-return period of at least how long?

30 days

Which of the following insurance policies is always part of a "24 Hour coverage" insurance plan?

A Workers Compensation Policy

Which of following selections correctly describes the California State Compensation Insurance Fund?

A state entity that exists solely to transact Workers compensation Insurance on a nonprofit basis

If an agent wants to handle workers compensations cases, what type of license must the agent obtain?

Accident and health Insurance

In which Medicare supplemental policies are the core benefits found?

All plans

All of the following would be considered unethical or illegal practice EXCEPT

An agent is trying to talk a customer out of buying a specific insurance product because it would not serve the customer's needs

Which of the following choice would define 24 hour coverage?

An employee is provided with workers compensation coverage and medical insurance coverage

An agent has been hired by a local business owner to determine what type of personal and professional coverage he needs. The agent has determined the business owner's needs and recommended policies from 3 possible companies. The agent does NOT have an agency contract with any of these companies. The agent is acting as

An insurance broker

All of the following are insurable events as defined in the Insurance Code EXCEPT

An insured loses a large sum in a poker game

Which of the following is NOT something a client must expect from a professional agent?

Answers to financial questions outside the agents expertise

In needs selling, communication and education continues

As long as the insured continues to be a customer

The authority to transact disability insurance given by an insurer to a person acting as an agent by appointment shall be effective

As of the date the notice of appointment is signed by the insurer

Any insurer who engages in the insurance business and violates the Code with respect to insurance replacement shall on the first violation

Be fined a sum of 10,000

An unincorporated, nonprofit association representing all insurance companies in the State of California licensed to transact workers compensation insurance is known as

California Workers Comp Inspection Rating Bureau

The attempt to "save" an original policy from replacement or lapse is called

Conservation

Representations are written or oral statements made by the applicant that are

Considered to be true to the best of the applicant's knowledge

Which of the following is NOT true about earthquake coverage?

Coverage is commonly provided through a federally-funded program

Which of the following terms best describes a trembling or shaking of the earth that is volcanic or seismic in origin?

Earthquake

All of the following may be covered under the Employers Liability policy EXCEPT

Employees eligible for 24 hour coverage

As it relates to the insurance industry, a set of principles for proper conduct in transacting of insurance is referred to as

Ethics

According to the California Law, if an insurer includes a fraudulent claim clause in the contract regarding the legal ramifications of a false claim, the clause must be preceded by which of the following statements?

For your protection, California Law requires the following to appear on this form

All of the following are examples of insurable interest in property insurance EXCEPT

Harry who is waiting for his distant cousin's beach-front property as part of his inheritance

Which of the following represents an ethical responsibility that an independent insurance agent owes to the general public?

Informing the public about insurance products with the highest level of professional integrity

A contract which one party undertakes to indemnify another against loss is called

Insurance

What do individuals use to transfer their risk of loss to a larger group?

Insurance

The insurance agent is a direct representative of the

Insurer

Insurance producers have ethical responsibilities to which of the following?

Insurers, policy owners, the state, and the public

Which of the following is a characteristic of a purchasing group?

It purchases liability insurance covering all members on a group basis

Which type of insurance includes the assumption of a contractual obligation to reimburse the insured against all or a portion of his fees, costs, and expenses related to or arising out of services performed by or under the supervision of an attorney who is an active member of the bar of any jurisdiction or jurisdictions of the United States?

Legal Insurance

Insurance is a contract by which one seeks to protect another from

Loss

The right of the applicant to rescind the policy for a full refund of all premiums

Must be clearly stated in the policy's text

When a long term care policy is replaced after it has been in effect for at least six months, the new policy may

Not exclude pre-existing conditions that would have been covered by the original effect

Joe lit a fire in his fireplace and left it unattended. He had failed to check to see if the flue was open, so the smoke entered the house and discolored the walls, ceiling, and drapes. Joe also had to hire a company to remove the smoke odor. The total expense of cleaning and repainting was $6,000. How much would Joe's Standard Fire policy pay?

Nothing

An applicant is discussing his options for Medicare supplement coverage with his agent. The applicant is 65 years old and has just enrolled in Medicare Part A and Part B. What is the insurance company obligated to do?

Offer the supplement policy on a guaranteed issue basis

What type of policy only establishes the value of an insured object when a loss occurs?

Open

An insured who signs a fraudulent claim form may be guilty of

Perjury

Who might receive dividends from a mutual insurer?

Policyholders

When may a representation be withdrawn?

Prior to the issuance of the policy

Bob surrenders his policy. What return of premium will he receive?

Prorated premium for the insured days in the future that he has already paid for, mine other deductions related to losses