Chapter 1: General California Life Insurance Law

An agent has how many days in which to receive an appointment after the issuance of an insurance contract?

14 Days

What is considered uninsurable?

An insured loses a large sum in a poker game. Speculative losses are uninsurable.

How often must every insurer doing business in California reports its financial condition to the Commissioner?

Each year, on or before March 1st

The key factor of representation that allows the injured party to rescind the contract is

If the representation is false in a material point

In determining how material a piece of information is to each party of a contract , the value is not determined by the event itself, but solely by which of the following?

Influence this information would have in forming an estimate of advantages or the disadvantages of the contract

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

Insurance

Insurance is a contract that protects the insured from what?

Loss

What method do insurers use to protect themselves against catastrophic losses?

Reinsurance