Code and Ethics

how long must a agent maintain records sold in CA?

5 years

under tort law a person can face a claim for legal liability on the basis of all of the following except:

Breach of Contract

when advertising on the internet in CA. An agent or broker must provide all the following except?

Expiration date of License

an act which requires reporting agency to take action if a consumer complains about inaccurate information is:

Fair Credit Act

according to the CA Dept of Insurance fraudulent is considered?

Felony

According to the CA department of Insurance which term is permissive

May

according to the CA department of Insurance which term is mandatory?

Shall

in the california insurance code there is a definition that reads, in short, "...a person who offers to advise for a fee, any insured having interest in life or disability insurance contracts...this is a:

a life and disability analyst

According to the California Insurance Code what must appear on a notice of claim form given to an insured?

a notice stating that any person who knowingly presents a false or fraudulent claim is guilty of a crime, and may be subject to fines and confinement in state prison.

workers compensation part 1 covers:

all sums the insurer is required to pay by state law

in insurance terms, a representation can be considered:

an implied warranty

all of the following are valid reasons for the insurance commissioner to deny the application for an insurance license except?

applicant does not have a California Business address

records of an agent or broker must be available to the commissioner

at all times

CA Insurance code requires television commercial selling term life insurance to individuals 55 or older must inform the consumer that.

benefits and limitations should be considered prior to purchase

neglecting to communicate that which a party knows, and ought to communicate, so that the other party may make a sound decision is known as:

concealment

if a licensee wants to terminate and surrender his license, what must he do?

deliver the license to the commissioner

When a mutual insurance company changes to a stock insurance company. it is referred to as

demutualization (or Conversion)

an applicant for an insurance license had another professional license revoked. What would the commissioner most likely do?

deny the application without a hearing

with whom are policy forms filled?

department of insurance

an act which requires a reporting agency to take action if a consumer complains about inaccurate information is

fair credit act

what must an insurer do who accepts an application from an agent who is not specifically appointed by that insurer and subsequently issues a policy based on that application?

forward to the insurance commissioner a notice of appointment within 14 days of receipt of the application

what must an insurer do, who accepts an application from an agent who is appointed by that insurer, if the subsequently will issue a policy based on that application?

forward to the insurance commissioner a notice of appointment within 14 days of receipt of the application

lou jones who has earned the cpcu designation, holds individual licenses as insurance agent and broker. he employs two solicitors in his agency. which of the following is a true statement about names?

he can use Lou jones CPCU AAI on his insurance stationery and other forms

which of the following describes an insurer who has enough financial resources only to provide for all its liabilities and for all reinsurance of all outstanding risks?

insolvent

the insurance commisioner:

is elected by the public

to what does 24 hour coverage refer?

it is the joint issuance of a worker's compensation policy with a disability insurance policy or other medical coverage for non-occupational injuries and illnesses

a person who acts in a capacity that requires an active license without having a valid license is guilty of a:

misdemeanor

under which circumstances does a party involved in a contract of insurance need to communicate information based solely on his judgement?

never

any person who meets with a senior at a seniors home, is required to deliver a notice in writing to the seniors home. they must receive this notice prior to the initial meeting within how many days of the meeting?

no less than 24 hours

when may a representation be withdrawn?

only before the insurance is in effect

under workers compensation, a disability that is a permanent physical impairment leaving the individual incapable of performing the previous regular occupation, but capable of performing some other type of work, is a:

permanent partial disabilty

all of the following might make an agent act unethically except:

placing a client's interests first

benefits under workers compensation would include:

rehabilitation, medical costs, loss of time

what can an insurer do when a fraudulent and intentional omission is committed on the part of the insured proving a warranty false?

rescind the contract

the insurance code definition of an insurance broker is:

someone paid to transact insurance on behalf of another person, but not on behalf of the insurer.

who is allowed to work with non-admitted carriers when the insurance cannot be found in the ordinary market?

surplus lines brokers

According to the California Insurance code, an insurance policy must specify all of the following except?

the financial rating of the insurer

why is having a large number of similar exposure units important to insurers?

the greater the number of insured's the more accurately the insurer can predict losses

why is having a large number of similar exposure units important to insurers?

the greater the number of insured's, the more accurately the insurer can predict losses and set appropriate premiums

the mathematical rule that states as the number of individual but similar exposure units increases, the easier it is to predict losses is which of the following?

the law of large numbers

an agent held one appointment with an insurance company. the appointment was terminated. what is correct?

the license is inactive

when an agent accepts premium from the insured and uses the money for personal gain, it is considered:

theft

under workers compensation medical payments, which is correct?

there is no time or dollar limit on medical payments

the purpose of the california life and health guarantee association is:

to protect life policy holder and/or insured's when any member insurer becomes insolvent

a wrongful act other than a crime or breach of contract is a:

tort

according to prop 103, the commissioner of insurance became an elected official. the commissioner may serve:

two consecutive terms (8 years)

when may an agent transact for an insurance company?

when the appointing company signs the action notice of appointment

workers compensation laws require the employer to pay benefits to a worker who is injured in the course of employment. the employee is covered:

without regard to fault or negligence of the employer or any other person

an employee tripped over her shoelace at work and suffered an injury. this injury would be covered by:

workers compensation

which of the following is not a federal government program?

workers compensation