Ch. 1: General California Insurance Law

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

Insurance

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

Pure risks

The legal definition of "person" would NOT include which of the following?

family

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

insurance

What is reinsurance?

An agreement between a ceding insurer an assuming insurer

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

loss

Insurance is the transfer of

risk

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

Reinsurance

The type of insurance that guarantees the behavior of persons and the performance of contracts other than insurance policies is known as

Surety insurance (Surety insurance includes the guaranteeing of behavior of persons and the guaranteeing of performance of contracts other than insurance policies and other than for payments secured by a mortgage, deed of trust, or other instrument constituting a lien or charge on real estate.)