California Insirance Code and Ethics
Which type of insurance includes the assumption of a contractual obligation to reimburse the insured against all or portion of his fees, costs, and expenses related to or airsing out of the 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
Risk retention groups are prohibited from engaging in all of the following types of insurance EXCEPT
Liability
A policyowner no longer needs a life insurance policy and agrees to sell it to a third party for more than its cash value. This type of transaction is called
Life settlement
Representations in insurance contracts qualify as
Limited warranties
Which of the following is NOT considered a misrepresentatjon as it pertains to unfair trade practices?
Making comparisons between different policies
Transacting insurance without a license is considered a
Misdemeanor
Guranteeing future dividens is considered to be unfair or deceptive act known as
Misrepresentation
An insured purchases an insurance policy 5 years ago. Last Year, she recieved a dividend check from the insurane company that was not taxable. This year, she did not recieve a check from the insurer. From what tyoe of insurer did the insured purchase the policy?
Mutual
Concealment as defined by the California Insurance Code is
Neglect on the part od insured to communicate all information known to be material to the insurer
All of the following TRUE statements regarding the requirements of an insurer to offer earth movement coverage in california EXCEPT
onlt authorized agents which hold an "earth movement certificate" through the department of insurance are able to market residential property insurance which provides coverage for earth movement
If any indivisual submits a written request to an insurance company requestinting access to his/her own recorded personal information, all of the following requiremenrs are true EXCEPT
the company will foward all necessary correspondence within 60 buisness days from the date a request is recieved
All of the following are considered rebates if offered to an insured in the sale of insurance EXCEPT
dividens from a mutual insurer
Signing and dating a delivery recpiet for a life insurance policy helps establish all of the following timeframes EXCEPT
grace period
The legal definition of a "person" would NOT include which of the following
A family
Insurance companies may be classified according to the legal form of their ownership. The type of company organized to return any surplus money to their policyholders is
A mutual insurer
Which of the following selections correctly describes the California State Compensation Insurance fund?
A state entity that exists soley to transact Workers Compensation Insurance on a nonprofit basis
Insurance policy is
A written instrument in which a contract of insurance us set forth
What is reinsurance?
An agreement between a ceding insurer an assuming insurer
Which of the following chiices would define 24-hour coverage?
An employee is provided with workers compensation coverage and medical insurance coverage
Which of the following would NOT be considered a form od "adverse underwriting decisions "for a policy involving individually underwritten coverage?
An insurer giving an insured a "perferred" rating due to health and lifestyle conditions
What is a foreign insurer?
An insurer with a home office in another state
Every expressed warranty made at or before the execution of a policy must be
Containe in and reffered to in the policy or other document and signed by the insured
An applicant for a license previously had a jusgment against him after entering a plea of "nolo contebdere" this applicant is comsidered to be
Convicted
All of the following may be covered under the Employers Liability policy EXCEPT
Employees eligible for 24-hour coverage
Facual statemtents aboht the insured or the risk in an insurance policy are considered
Express warranty
The insurance solicitor is only found im which field of insurance?
Fire and casualty
California's compulsory financial responsibility law requires every driver and every owner if a motor vehicle to maintain financial responsilbility at all times. If you dont have acceptable financial responsibiltiy and have an accident, you may lose your drivers license for up to
Four years
Under HIPPA portability, which of the following are NOT protected under required benefits?
Groups of one or more
A representation in an insurance contract qualifies as an
Implied warranty
fradulent activities in health carr are estimated in billions of dollars annually. This results in
Increase in heath care costs for everyone
Home services insurance is a variation of which type of life policies?
Industrial Life Insurance
All advertisements, regardless of their source of creation, are the responsibility of the
Insurer
Which of the following is a characteristic of a purchasing group?
It purchaes liability insurance covering all members on a group basis
Life agents must tell applicants when their coverage will start or the conditions required for their coverage to start either at the time of application or
When the first premium is recieved
A policyholder returns the policy to the insurer a week after it is delivered. How much of the premium will be returned to the applicant?
100%
The notice to senior consumers regarding their right to cancel a policy must be printed on the cover or policy jacket in atleast what type of print
12-point bold print
What are the continuing education requirements for life-only agents in California?
24 hours every 2 years
In a group life insurance plan, children of the employee may be covered as eligible dependents until they reach the age of
26
An agent whose license is due to expire may submit an application for renewal and pay applicable fees and continue operating under the expired license for a period of
60 days
A life insurance policy can be delivered by all of the following means except
Priority mail
a statement made by an applicant for insurance that must be true in every respect is considered to be
Representation
Insurance is the transfer of
Risk
If a licensee would like to terminare his license and has it in his possession, what would he have to do?
Send the license to the commissioner for termination
Which of the followkng insurers are owned by stockholders who have the usual rights of ownership, including the right of voting?
Stock
The type of insurance that guarantees the behavior of persons and the performance of contracts other than insurance policies are known as
Surety Insurance
The california insurance commissioner may deby an application for license of The following reasons EXCEPT
The applicant does not have a California buisness address
Under the prior approval plan, insurers file proposed policy rate information with
The department of Insurance
which of the following best describes the insurer's liability for losses arising from military service?
The insurer's liability may be reduced or excluded
Which of the following is NOT covered under Plan A in Medigap insurance
The medicare part A deductible
A warranty may relate to which of the following?
The past, present, and the future
Which of the following best describes the term "24-hour coverage" in relation to workers compensation insurance
This represents a two-probged coverage:workers compensation during work hours and regular medical coverage outside of work
What is the purpose of the California laws regarding production agencies?
To provide protection from the clients by requiring producers to maintain professional standards of conduct
Which method of dealing with risk is applied when insurance is purchases
Transfer
