CA Life, Accident, and Health Practice Examination Flashcards
“Person” means all of the following EXCEPT
an organizational trust
When working on behalf of an insurer for which they are not specifically appointed, what may a licensed agent do?
present a proposal for insurance and transmit an application to the insurer
When is a representation false?
when the facts fail to correspond with its assertions or stipulations
Which of the following provisions of free insurance offered as an incentive to purchase or rent property is TRUE?
it requires a seperate charge or fee
“Notice of legal action” can mean all of the following EXCEPT
notice of action against the agent
a policy shall specify all of the following EXCEPT
the method in which the coverage amount was calculated
which of the following is TRUE regarding continuing education requirements of an agent or broker?
Any licensee shall satisfactorily complete 24 hours of instruction prior to license renewal
As used in the insurance code, the word “shall” is mandatory and the word “may’ is permissive EXCEPT
unless otherwise apparent from the context
When should an agent provide an applicant the effective date of coverage, if known, or the circumstances under which coverage will be effective?
at the time of application or receipt of premium
What is a solicitor employed to do for a policy other than life?
to aid a property and casualty agent or broker in transacting insurance
The Insurance Commissioner may deny an application for any license issued for any of the following EXCEPT
the applicant is lacking in good judgment
How is the insurance commissioner chosen?
Elected by the people
which form of negotiation is covered under the definition of “transact” as applied to insurance?
Negotiations preliminary to execution
All of the following are examples of misrepresentations that may not be made by an insurer, officer or agent thereof or an insurance broker or solicitor EXCEPT
the specific contract language
Which statement accurately describes de-mututalization?
a mutual insurance company that decides to convert to a stock company
How does an “admitted” person differ from an “nonadmitted” person, as it pertains to insurance?
An “admitted” person has the right to transact insurance business within the state, while a “nonadmitted” person is not entitled to this action
all of the following define insolvency EXCEPT
revocation of certificate of authority by the commissioner
According to the Administrative Procedures Act, what is required to make changes to the California Insurance Code?
The Department of Insurance is required to publish proposed changes at least 45 days prior to the hearing or decision to adopt the change.
Concealment, whether intentional or unintentional, entities the injured party to?
rescind insurance
Which of the following is an insurer allowed to do in the event of a claim?
request a medical examination for the purpose of determining liability under a policy provision
Which of the following actions is considered part of the insurance sales process?
Transaction of matters subsequent to execution of the contract and arising out of it
Which of the following is TRUE regarding Nonadmitted insurers?
Acting as an agent for a Non-admitted insurer is considered a misdemeanor
A person who does NOT hold a valid license amy do which of the following
examine contracts of insurance
When can a person act as an agent of the insurer?
When the insurer has filed with the commissioner a notice of appointment
All of the following are requirements for an agent who advertises and transacts business on the Internet EXCEPT
his or her most recent license and appointment
When may a surplus aline broker solicit and place insurance for a home state insured with a Nonadmitted insurer?
If the same insurance coverage cannot be procured from an admitted insurer
What is the punishment for a person who refuses to deliver books, records, or assets to the commissioner when subject to a seizure order in an insolvency proceeding?
Not more than $1000 fine and/or 1 year imprisonment
When may a representation be altered or withdrawn?
Before the insurance is effected
All of the following are a duty of an insurer in regards to claims on file and record documentation EXCEPT
Maintaining any sales material, which had a material impact on the claims process
Which of the following is TRUE regarding change of address for a licensee?
The commissioner must be notified immediately of any change in the personal, business, or email address.
Which of the following can the insurer do if the insured intentionally conceals or misrepresents a material fact concerning any coverage part?
Rescind the contract
All of the following are examples of representation EXCEPT
it may be altered after the insurance is effected
An “insurance agent” means a person authorized, by and on behalf of an insurer, to transact which of the following class of insurance?
Annuities
Which group of people is offered additional protection by the Unfair Practices Act that regulates trade practices in the business of insurance?
Survivors of the Holocaust
Which statement describes the intent of the California Financial Information Privacy Act?
It provides greater privacy protections than those provided in the federal Gramm-Leach-Bliley Act
According to CIC section 1711, an organization ceases to exist as an entity eligible to hold a license EXCEPT
upon the termination of all contracts
Which circumstances in a pretext interview determine if the questions are permissible?
When an insured is consulted by a person who hides his true identity on purpose when fraud for a claim is suspected
“Notice of legal action” can mean all of the following EXCEPT
notice of action against the agent
All of the following are TRUE regarding the process to change the California Code of Regulations EXCEPT
The Office of Administrative Law (OAL) may substitute its own judgment for that of the rule making agency
What is the maximum fine for a person who transacts insurance without a valid license?
$50,000 and/or imprisonment for a period not exceeding one year
Whether admitted or nonadmitted, how does a “foreign” insurer differ from an “alien” or “domestic” insurer?
A “foreign” insurer is organized under the laws of another state within the United States.
The following are all penalties for unlawfully acting as an insurer without a certificate of authority EXCEPT
the individual will be banned from practicing insurance for a period of 5 years
Which statement describes the intent of the California FInancial Information Privacy Act?
It provides greater privacy protections than those provided in the federal Gramm-Leach-Bliley Act
All of the following are to be specified in an insurance policy EXCEPT
the financial rating of the insured
When should an agent provide an applicant the effective date of coverage, if known, or the circumstances under which will be effective?
at the time of application or receipt of premium
Which are assets that are in excess of an insurer’s liability for reported losses, expenses, taxes, and reinsurance of outstanding risks?
paid-in capital
Which is TRUE regarding a life and health agent who has not been specifically appointed by the insurer?
If a policy is issued, the insurer is considered to have authorized the agent to act on its behalf
All of the following are examples of representation EXCEPT
it may be altered after the insurance is effected
Which of the following provisions of free insurance offered as an incentive to purchase or rent property is TRUE?
it requires a separate charge or fee
When working on behalf of an insurer for which they are not specifically appointed, what may a licensed agent do?
present a proposal for insurance and transmit an application to the insurer
It is unlawful to do any of the following EXCEPT
make or cause to made a knowingly false or fraudulent or material representation for the purpose of encouraging an innjured worker to claim benefits.
All of the following are TRUE regarding regulation and use of an agency name EXCEPT
a name would not be denied on the basis of being too similar to other company names
Which group of people is offered additional protection by the Unfair Practices Act that regulates trade practices in the business of insurance?
survivors of the Holocaust
As used in the insurance code, the word “shall” is mandatory and the word “may” is permissive EXCEPT
unless otherwise apparent from the context
The Insurance Commissioner may deny an application for any license issued for any of the following in good judgment
the applicant is lacking in good judgment
Who is eligible to be an insurer?
Any person, company, organization or corporation that is capable of making a contract
What does concealment, whether intentional or unintentional, entitle the injured party to?
The insurer may rescind the contract on the basis of misrepresentation, concealment, or fraud by the insured
Which of the following actions is considered part of the insurance sales process?
Transaction of matters subsequent to execution of the contract and arising out of it
How is the insurance commissioner chosen?
Elected by the people
When can a person act as an agent of the insurer?
when the insurer has filed with the commissioner a notice of appointment
An agent or representative who issues long term care insurance must do all of the following EXCEPT
Complete a total of 10 hours of continuing education if licensed before January 1st, 2002
Which of the following is TRUE regarding change of address for a licensee?
The commissioner must be notified immediately of any change in the personal, business, or email address
Which circumstances in a pretext interview determine if the questions are permissible?
When an insured is consulted by a person who hides his true identity on purpose when fraud for a claim is suspected
Which of the following terms refers to any evidence or documentation in the possession of the insurer that provides any evidence of a claim and that reasonably supports the magnitude or the amount of the claimant loss?
proof of claim
Insurance is which type of contract?
One agrees to indemnify against loss, damage or liability arising from a contingent or unknown risk
An insurance agent is a person who transacts all of the following types of insurance EXCEPT
life insurance
How is an insurance policy defined?
The written instrument, in which a contract of insurance is set forth
an “insurance agent” means a person authorized, by and on behalf of an insurer, to transact which of the following class of insurance?
Annuities
Concealment, whether intentional or unintentional, entitles the injured party to?
Rescind Insurance
Which would permit an insurer to escape insolvency?
possession of assets equal to the total paid-in capital after all liabilities and reinsurance
Which form of negotiation is covered under the definition of “transact” as applied to insurance?
Negotiations preliminary to execution
What is a solicitor employed to do for a policy other than life?
To aid a property and casualty agent or broker in transacting insurance
When should an insurer provide for the continuous operation of a unit or division to investigate possible fraudulent claims
If admitted to do business in this state, except those otherwise exempted
how can a licensee surrender any license for cancellation?
by submitting written notice or by delivering the license to the commisioner
All of the following are a duty of an insurer in regards to claims on file and record documentation EXCEPT
maintaining any sales material, which had a material impact on the claims process
