Insurance

contracted by

A life agent may use the name of corporation or association on any stationary or advertisement to identify the relationship in all of the following except representing contracted by stockholder of placing business through

Fine of 25,000

A person caught violating provisions regarding misrepresentation could be subject to which of the following - Jail for 3 years, Fine of 25,000, Written Warning from the Commissioner , or Permanent Suspension of License.

Insurance Broker

A person that does NOT work on the behalf of the company work on the behalf of the company for which he or she does business , but rather represents the prospect, insured , or client. Insurance Assistant Insurance Agent Insurance Broker

Warranty

A written guarantee that the info. provided is true and accurate. Warranty, Policy, Law.

Pure Events

According to California Insurance Code which of the following is considered an insurable event ? Extreme levels of loss, speculative risks, unpredictable loss, or pure events

"For your protection CA Law Requires the following on this form."

According to the CA law , if an insurer includes a fraudulent claim in the contract regarding the legal ramifications of a false claim, the abuse must be preceded by ... "For protection of all parties involving the contract you must provide me with" , "For your protection CA Law Requires the following on this form.", " Law permits you to disclose this info. "

6

According to the code there should be this many separate requirements in an Insurance Policy? 2,4,6,8?

More than one insurer

An independent agent may have consultant with which of the following? One Insurer More than one insurer more than one insurer but not to exceed 3

Life Insurance

An insurance agent may NOT transact Health Insurance Life Insurance Auto Insurance

Violation of Code

An insurance agent who has been in a sales slump for the last 6 months has decide that he or she will offer complimentary health insurance for the first year on every life insurance policy she gets for the next 6 months . What is this? Misrepresentation Violation of Code Sales Tactic

Non admitted Company

An insurance company not allowed to do business in the state of CA is known as? Non admitted Company Alien Company Surplus Company

Direct Response Marketing

An insurance company sells an insurance policy over the phone in response to a TV ad which type of marketing is this? Direct Response Marketing, Advertising without notice, False Advertising.

May be guilty of a misdemeanor

Any person who transacts insurance with out a license. May be guilty of a felony May be guilty of a felony and may be charger with a fine of 200k May be guilty of a misdemeanor

Materiability

Based on the idea that all parties to a contract are entitled to all info. necessary to make an informed decision about the quality or nature of a contract. Representations, Materiability, Expressed Warranty.

Penal Code Section 550

Code that makes it illegal to intentionally commit any of the acts specified below or to, in any way , intentionally enable someone else to commit any of the acts specified. Penal Code Section 550, Penal Code 737, Penal Code 6500.

Contained in and referred to in the policy or other document and signed by the insured.

Every Expressed warranty made at or before the execution of a policy must be..Contained in and referred to in the policy or other document and signed by the insured, Signed by the insured and turned in within 30 days, approved by the insurance company and commissioner.

Immediatly

Every holder of an insurance license must notify the Commissioner, in writing, of any change of residence address , business address, or mailing address within what time period? 10 days 2 weeks 1 month immediately

A period of 30 days following a written request

Every insurer is required to provide all records requested by the Commissioner within A period of 30 days following a written request A period of 60 days following a written request A period of 5 business days following a written request

Exclusive Agent

Has a contract to work with one company. Independent Agent, Exclusive Agent, Parental Agent.

Errors and Omissions

If an agent unwittingly gives a client incorrect information, what professional insurance would pay for losses or defend the agent against any resulting lawsuits Professional Liability Non medical Insurance Errors and Omissions

Info. the other party already knows

Info. must be communicated in an insurance contract EXCEPT for Info. in regards to coverage info. in regards to changes made Info. the other party already knows

Loss

Insurance is a contract by which someone seeks to protect them from ... loss, hazard, liability, debt.

Risk

Insurance is the transfer of .. Risk, Loss, Hazard, Peril.

Producer

Legal Entity , either human or cooperate, that acts on behalf of , or in place of its principal. Producer, Agent, Insurer.

2

Matt owns an insurance company . How many names may his business have? 1 2 3 4

The same size print as the agents address and phone number

On all printed documents placed before the public , what size print should be used for the agents license number? at least size 10 print there are no size specifications the same size print as the agents address and phone number

Insurance Broker

Person who transacts insurance business , other than life insurance, for compensation from and behalf of another person, but not on behalf of or as a representative of an insurance company for which he has an appointment is called Insurance Agent Exclusive Agent Insurance Broker

Any printed materials used by the insurer, either directly or indirectly by its agents

Records required to be maintained or to be made available by an insurer include all of the following except? The original application for each policy sold A copy of the outline of coverage as required by law. Any printed materials used by the insurer, either directly or indirectly by its agents

Implied Warranties

Representations in insurance contracts are considered what? Implied Warranties, Spoken Warranties, or Policy Statement.

Independent Agent

Represents several insurance companies but owns the records of policies sold. Independent Agent, Commissioner, Producer.

Representations

Statements that are believed to be true to the best of ones knowledge, but are not guaranteed to be true. They are the answers the insured gives on their application. Fraud, Misrepresentations, Representations.

Prior to the insurance of the policy.

When may a representation be withdrawn? Prior to the insurance policy After the insurance policy Never

When it is intentional and material

When would misrepresentation be considered fraud ? When it is unintentional but performed anyways Intentional but immaterial When it is intentional and material

Captive Agent

Who is an Insurance Provider who by contract is bound to write insurance for only one company or group of companies is classified as an? Independent Agent, Captive agent,Dependent Agent

The licensee

Who is in charge of notifying the Commissioner of a licensees change of address? The agency the licensee works for The licensee The appointing manager

Insurance

contract by which one party partakes to indemnify another against loss. insurance , reinsurance, title insurance, tornado insurance.

Title Insurance

guarantees or indemnifies owners of personal property or real properties or the holders of liens or other interested parties against loss or damage suffered to said property. title property, title insurance, fire insurance, reinsurance.

Producer

legal entity.

Implied Warranty

may qualify for this when representation can not qualify an express provision in a contract of insurance. Unwritten or unspoken guarantee. Written Warranty, Unwritten Warranty, Expressed Warranty.

Personal Floater Property

personal property other than merchandise. singular property, family property, personal floater property.

Principal

the insurer. Consumer, Principal, Producer.

Reinsurance

what method do insures use to protect themselves against catastrophic losses. reinsurance, misrepresentation, insurance, or win loss.

Material Misrepresentation

A statement made by the applicant that, upon discovery , would affect the underwriting decision of the insurance company. Misrepresentation, Verbal Misrepresentation, Material Misrepresentation.

Misdemeanor

Acting as an agent for a non admitted insurer is considered a Felony Misdemeanor Unfair trade practice

5 years

After cancellation or expiration of a policy insurance agents are required to keep detailed bank and financial records about the transaction for a minimum of how long? 1 year 2 years 5 years 20 years

Reinsurance

Agreement between assuming insurer and ceding insurer. insurance, reinsurance, loss, or receding.

5 years after policy delivery or initial application if no policy was issued

All records relating to insurance application and delivery must be maintained by the insurer for a period of 5 years after policy delivery or initial application if no policy was issued 4 years after policy delivery or initial application if no policy was issued 2 years after policy delivery or initial application if no policy was issued

Gambling

All the following are insurable events except for ... Guest injured at your place, You breaking your arm, Gambling, Sued for Slander.

Reinsurance System

All the following are marketing arrangements are used by insurers EXCEPT General Agency System, Direct Response Marketing System, Reinsurance System, Independent Agency System.

10

An Insurance Agent is planning to give out his business cards to prospective clients to solicit some insurance businesses. On the business card he uses his name in size 16 font and phone number in size 14 and the business in size 10. What font size should he use for the agents license number? 10 12 14 16

Principal

An agent is someone who acts on behalf of? Company, Principal, Agent

An omission and will be covered by an errors and omission policy

An agent recently solicited a policy for a client who qualified for the standard premiums. During the underwriting process the applicant was rated as a substandard risk and assigned a higher premium . Upon policy delivery, the agent failed to mention that the premiums will be higher, and the client filed a lawsuit against the insurer. What is this? Misrepresentation which is illegal An unfair claim settlement An omission and will be covered by an errors and omission policy

60 days

An agent who is due to expire may submit an application for renewal and pay applicable fees and continue operation and use of the license for a period of? 30 days 14 days 60 days

Independent Agent

Has contracts with more than one insurer, and , ideally, is then said to own the renewal or own the expiration. Independent Agent, Exclusive Agent, Producer.

Insurer can rescind the contract

If any insured intentionally failed to communicate info. related to an implied warranty, what can the insurer do? Insurer can rescind the contract, sue the other party, charge the party with a misdemeanor.

Void a Contract

If found material for underwriting , a misrepresentation can? Void a Contract, 5 year jail time suspension of license, 1-3 year jail time 20,000 fine.

3 Years

In addition to penalties, fines, and possible imprisonment for violating the provision relating to misrepresentation , the Commissioner may suspend the license for up to ? 2,3,4,5 years?

Both

In the case in violation of a material warranty or other material provision allows both, neither, only the insurer, or only the insured to rescind?

a period of 30 days following a written request

Every insurer is required to provide all records requested by the Commissioner within a period of 30 days following a written request a period of 60 days following a written request 5 business days of notification by the Commissioners office

Concealment

Failure to disclose known facts . Legal Term for the intentional withholding of info. of a material fact that is crucial, in making a decision. In insurance , its withholding information from the applicant that will result in an imprecise underwriting decision. Concealment , Reinsurance, Implied Warranty.

Increase in Health Care Costs for Everyone

Fraudulent Activities in Health Care are estimated in billions of dollars annually which results in? Decrease in healthcare costs for everyone, Increase in Health Care Costs for Everyone, Equal pay for everyone

Direct Response System

In which distribution system must the potential client take the initiative and respond to an advertisement through a telephone or mail contact with the insurer.... Personal Property System Direct Response System Mail Response System

Family

The legal definition of person does NOT include which of the following. Individual Person , Family , Corporation, Business Entity

1k

The maximum penalty for failure to print an individual agents license number on printed documents is 1k 2k 3k 5k

Insurance Policy

This Policy is the written instrument in which a contract of insurance is set forth. Insurance Policy, Reinsurance Policy, Warranty.

Rescission

This is when an insurance applicant intentionally fails to communicate info. that the insurer needs , the insurer has the right to cancel the policy if the failure to communicate is discovered after the policy has been issued. Code Issue, Rescission, Penal Code.

Misdemeanor

Transacting insurance without a license is considered a? Misdemeanor Fine Felony

Misc Insurance

Type of Insurance classified as.. indirect damage from a lightning, tornado, windstorm, earth quake, if an accident happens to a member of a team involving a movie or tv show resulting in death, injury, or disability. Liability insurance, reinsurance, misc insurance.

Common Carrier Insurance

Type of Insurance that includes insurance against loss resulting from liability of a common carrier for accident or injury, fatal or nonfatal, to any person . Does not include workers compensation. Independent Insurance, Common carrier Insurance, Insolvency Insurance.

Liability Insurance

Type of Insurance that includes insurance that covers loss resulting from liability for injury, fatal, nonfatal , suffered by any person or damage to property, or property interests of others . Not including workers compensation, common carrier liability, boiler and machine, or team and vehicle. :Liability insurance , misc insurance, credit insurance .

Legal Insurance

Type of Insurance that includes the assumption of a contractual obligation to reimburse the insured against all fees and expenses, related to or arsing out of services from by or under supervision of an attorney who is an active member of the bar of any jurisdiction of the United States in which these legal services are performed. Insolvency Insurance, Legal Insurance, Credit Insurance.

Credit Insurance

Type of Insurance that includes the insurance of persons engaged in business against loss by reason of extending credit to those dealing with them, and insurance against loss from the failure of persons to meet existing or contemplated obligations to the insured. Auto insurance, credit insurance, debt insurance.

Insolvency Insurance

Type of Insurance that protects against loss arising from failure of an insolvent insurer to discharge its obligations under its insurance policies. Common Carrier Insurance, Liability Insurance, Insolvency Insurance.

Misrepresentations

Untrue statements on the contract application. Misrepresentations, Fraud, Illegal statements.

Rescission of the policy

What is an insured party entitled to receive if an intentional concealment is discovered? Rescission of the policy, financial compensation, or nothing only non intentional concealment is punishable.

Direct- Response

What is the term for a sales campaign conducted through the mail? Mail advertisement, Direct Response, Misrepresentation Advertising.

Expressed Warranty

Written or Spoken Guarantee. Written Warranty, Spoken Warranty Expressed Warranty.

Surety Insurance

a type of insurance that guarantees the behavior of persons and the performance of contracts other than insurance policies. pure events, insurance, reinsurance, surety insurance.

Material Mipresentations

alters the underwriting decision of the insurance company . Unless they are intentional because that is fraud. Material Representations, Misrepresentations, Representations.