Study guide #1-50
Insurance Knowledge Quiz
Test your understanding of key concepts in insurance with our engaging quiz! This quiz covers various topics essential for anyone looking to deepen their knowledge or prepare for exams in the insurance field.
- Multiple choice questions
- Score-based results
- Covers California Insurance Code
The increase in the probability of a loss resulting from an insured's dishonest tendencies is known as
Moral hazard
Legal hazard
Physical hazard
Morale
What is meant by referring to an insurance policy as a unilateral contract
The insurance company works together in units
Only one contract can be put enforce
The insurance policy is owned by the insured
Only one party makes a legally enforceable promise
When must insurance records of insurance agents and brokers be made available to the Insurance Commissioner?
Only once
At all times
Biweekly
Monthly
Any situtation that presents the possibility of a loss is known as
A loss expose
A loss exposure
Risk
Opportune
Which of the following information is not required to be the communicated in a Life insurance contract?
Opinion
Personal Judgement
Illustration
The direct distribution of insurance utilizes all of the following to promote the sale of Insurance EXCEPT
Telephone call from an agent
Email
Word of mouth
A contract in which one party promises to indemnify another against loss that arises from an unknown event is
An insurance policy
Rule of indemity
Replace
All of the following statements about aleatory contacts are true Except
The insured and the insurer contribute equally to the contract
Only the measured contribute to the contract
All of the occurrences listed below are examples of an insurable event as defined by the California Insurance Code EXCEPT
Insurance policy
An insured losses house in fire
An insured suffers a financial loss in the state lottery
A contract of indemnity is one in which
One is restored to half of the financial loss occured
Ne party is restored to the same financial position the party was in before the loss occured
Almost all except most expensive not recovered
In insurance the term "indemnify" means
Make perfect
Bring back to life
Make whole
As defined in the California insurance code, ""insurance"" is a
Agreement
Contract
Selection
Protection
What would a person be guilty of who refuses to deliver any books, records , or assets to the commissioner once a seizure order has been executed?
A minor
A felony
A misdemeanor
Fraud
An agent who is acting as an insurance agent, broker, solicitor, life agent, accident and health, or bail agent acts in which capacity when handling premiums or return premium for an insurer
Fiduciary
Broker
Middle man
Which of the following statement regarding risk is TRUE?
One one risk is insurable
Risk cannot be insured
Only pure risk are insurable
The purchase of an insurance policy may accomplish all of the following for the insured EXCEPT
Creating jobs
Protect from mental illness
Protect from stress
Only pure risk are insurable
Insureds are entitled to recover an amount Not greater than the amount of their loss under the principle of
Indemnity
Risk
Moral Hazard
What rule is use to determine the importance of a representation
Concealment
The materiality of concealment
The required contents of a policy include all of the following EXCEPT
Statement
Illustrations
The probability of loss
All of the following are characteristics of reinsurance EXCEPT it
Protects insurance companies
Increases the unearned premium reserve
According to the California Insurance Code, an insurance policy must specify all of the following EXCEPT the
Financial rating of the insurer
Illustration
Policy of the company
All of the following qualify as ""background information"" as defined in Section 1729.2 of the California Insurance Code EXCEPT
Misdemeanor charges filed, not resulting in a conviction
Felonies charged to the insurance company
Loss retention is an effective risk management technique when all of the following conditions exist EXCEPT the
Risk is Patent
Probability of loss is unknown
When the cause is unknown
A situation in which there is a possibility of loss or a gain is a
Prospective risk
Speculative risk
Imitative risk
Why is having a large number of similar exposure units important to insurers
Numbers are part of the system
The greater the number insured, the more accurately the insurer can predict losses and set appropriate premiums
The lesser the number insured the greater the risk
All of the following are benefits of insurance EXCEPT it
Protects loss
Eliminates fraudulent loses
Accumulates tax free money
Who are members of the Medical information Bureau
Life and health insurance
Medical and life insurance
Hospital and life insurance
The process by which an insurer decides whether to issue requested insurance is called
Writing
Contract
Underwriting
Agreement
Unless its merely a statement of an expression or belief, a representation as to the future is considered which of the following?
Promise
Fact
Certain
Upon notification of a claim, a claimant must be given access to the California Fair Claims Settlement Practices resolution by all of the following means EXCEPT
Notifying them
By interview appointment with the agent of the record
What is the definition of premium?
Delayed payment
Certification of insurance
Money an insured pays an insurer to obtain the benefits provided in the policy
What is the goal of the underwriting process?
Making sure that insurance certification process runs smoothly
To avoid selecting a disproportionate number of bad risks
Paying premium
Insurer policy expenses include all the following EXCEPT
Death benefit
Insurance agent
Premiums
Making an insured whole by restoring them to the same conditions as before a loss is an example of
Large number
The principle of indenmity
Restitution
Risk can be defined as all of the following EXCEPT
The cause of loss
A situation involving exposure to danger
Which of the following is a requirement of a contract?
There must be an offer and acceptance of the contract terms
There must be an only an offer
There must be only an agreement
Moral hazard can be defined as the increase
Loss of morals
Chance of a loss occuring due to an insured's dishonest tendencies
Theft
Unintentional concealment entitles the injured party to which course of action, if any?
Rescission of the contract
Bankruptcy
According to the California Insurance Code, the Commissioner can disapprove a licensee's request to use a fictitious name for any of the following EXCEPT that the
Name is the licensee's actual name
Name is the surname
Name is Family name
It is considered an unfair method of competition for an agent to advertise that the insurer the agent is appointed with is
Insurance corporation of U.S
A member of the Insurance Guarantee Association
All insurance institutions
All of the following are requirements of contract EXCEPT
The insured is charged premium
The insurer must indemnify in the event of loss
There must be equal consideration between the parties
If an insurer must have its rates accepted by the insurance Department prior to using them, the insurer would be operating in which of the following types of jurisdictions?
Accepted afterward
Prior approval
It is the Federal offense for an insurance agent to do all of the following EXCEPT
Theft of information
Misrepresent facts on an insurance application
How often MUST an insurer file the National Association of Insurance Commissioners(NAIC) financial statement
Monthly
Semiannually
Annually
A person authorized by and on behalf of an insurer who transacts life, disability or life and accident and health insurance is defined as a
Insurance agent
Fiduciary
Broker
Life agent
Who are the members of the Medical Information Bureau?
Life and Health insurers
Life insurers
Health insurers
An insurer entitled to transact business by complying with the California Insurance Code is known as an
Policy holder
Admitted carrier
Group contract
The direct response distribution of Insurance utilizes all of the following to promote the sales of insurance EXCEPT
Email
Word of mouth
Telephone call from the agent
The increase in the probability of a loss resulting from an insured's dishonest tendencies is known as
Morale hazard
Moral hazard
Physical hard
Which is an agreement in which an insurer contacts with a third party to insure itself against losses from insurance policies it issues?
Reinsurance
Life insurance
Policy
{"name":"Study guide #1-50", "url":"https://www.quiz-maker.com/QPREVIEW","txt":"Test your understanding of key concepts in insurance with our engaging quiz! This quiz covers various topics essential for anyone looking to deepen their knowledge or prepare for exams in the insurance field.Multiple choice questionsScore-based resultsCovers California Insurance Code","img":"https:/images/course7.png"}