CA Life, Accident, and Health Practice Examination

Question 1

“Person” means all of the following EXCEPT

Answer 1

an organizational trust

Question 2

When working on behalf of an insurer for which they are not specifically appointed, what may a licensed agent do?

Answer 2

present a proposal for insurance and transmit an application to the insurer

Question 3

When is a representation false?

Answer 3

when the facts fail to correspond with its assertions or stipulations

Question 4

Which of the following provisions of free insurance offered as an incentive to purchase or rent property is TRUE?

Answer 4

it requires a seperate charge or fee

Question 5

“Notice of legal action” can mean all of the following EXCEPT

Answer 5

notice of action against the agent

Question 6

a policy shall specify all of the following EXCEPT

Answer 6

the method in which the coverage amount was calculated

Question 7

which of the following is TRUE regarding continuing education requirements of an agent or broker?

Answer 7

Any licensee shall satisfactorily complete 24 hours of instruction prior to license renewal

Question 8

As used in the insurance code, the word “shall” is mandatory and the word “may’ is permissive EXCEPT

Answer 8

unless otherwise apparent from the context

Question 9

When should an agent provide an applicant the effective date of coverage, if known, or the circumstances under which coverage will be effective?

Answer 9

at the time of application or receipt of premium

Question 10

What is a solicitor employed to do for a policy other than life?

Answer 10

to aid a property and casualty agent or broker in transacting insurance

Question 11

The Insurance Commissioner may deny an application for any license issued for any of the following EXCEPT

Answer 11

the applicant is lacking in good judgment

Question 12

How is the insurance commissioner chosen?

Answer 12

Elected by the people

Question 13

which form of negotiation is covered under the definition of “transact” as applied to insurance?

Answer 13

Negotiations preliminary to execution

Question 14

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

Answer 14

the specific contract language

Question 15

Which statement accurately describes de-mututalization?

Answer 15

a mutual insurance company that decides to convert to a stock company

Question 16

How does an “admitted” person differ from an “nonadmitted” person, as it pertains to insurance?

Answer 16

An “admitted” person has the right to transact insurance business within the state, while a “nonadmitted” person is not entitled to this action

Question 17

all of the following define insolvency EXCEPT

Answer 17

revocation of certificate of authority by the commissioner

Question 18

According to the Administrative Procedures Act, what is required to make changes to the California Insurance Code?

Answer 18

The Department of Insurance is required to publish proposed changes at least 45 days prior to the hearing or decision to adopt the change.

Question 19

Concealment, whether intentional or unintentional, entities the injured party to?

Answer 19

rescind insurance

Question 20

Which of the following is an insurer allowed to do in the event of a claim?

Answer 20

request a medical examination for the purpose of determining liability under a policy provision

Question 21

Which of the following actions is considered part of the insurance sales process?

Answer 21

Transaction of matters subsequent to execution of the contract and arising out of it

Question 22

Which of the following is TRUE regarding Nonadmitted insurers?

Answer 22

Acting as an agent for a Non-admitted insurer is considered a misdemeanor

Question 23

A person who does NOT hold a valid license amy do which of the following

Answer 23

examine contracts of insurance

Question 24

When can a person act as an agent of the insurer?

Answer 24

When the insurer has filed with the commissioner a notice of appointment

Question 25

All of the following are requirements for an agent who advertises and transacts business on the Internet EXCEPT

Answer 25

his or her most recent license and appointment

Question 26

When may a surplus aline broker solicit and place insurance for a home state insured with a Nonadmitted insurer?

Answer 26

If the same insurance coverage cannot be procured from an admitted insurer

Question 27

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?

Answer 27

Not more than $1000 fine and/or 1 year imprisonment

Question 28

When may a representation be altered or withdrawn?

Answer 28

Before the insurance is effected

Question 29

All of the following are a duty of an insurer in regards to claims on file and record documentation EXCEPT

Answer 29

Maintaining any sales material, which had a material impact on the claims process

Question 30

Which of the following is TRUE regarding change of address for a licensee?

Answer 30

The commissioner must be notified immediately of any change in the personal, business, or email address.

Question 31

Which of the following can the insurer do if the insured intentionally conceals or misrepresents a material fact concerning any coverage part?

Answer 31

Rescind the contract

Question 32

All of the following are examples of representation EXCEPT

Answer 32

it may be altered after the insurance is effected

Question 33

An "insurance agent" means a person authorized, by and on behalf of an insurer, to transact which of the following class of insurance?

Answer 33

Annuities

Question 34

Which group of people is offered additional protection by the Unfair Practices Act that regulates trade practices in the business of insurance?

Answer 34

Survivors of the Holocaust

Question 35

Which statement describes the intent of the California Financial Information Privacy Act?

Answer 35

It provides greater privacy protections than those provided in the federal Gramm-Leach-Bliley Act

Question 36

According to CIC section 1711, an organization ceases to exist as an entity eligible to hold a license EXCEPT

Answer 36

upon the termination of all contracts

Question 37

Which circumstances in a pretext interview determine if the questions are permissible?

Answer 37

When an insured is consulted by a person who hides his true identity on purpose when fraud for a claim is suspected

Question 38

"Notice of legal action" can mean all of the following EXCEPT

Answer 38

notice of action against the agent

Question 39

All of the following are TRUE regarding the process to change the California Code of Regulations EXCEPT

Answer 39

The Office of Administrative Law (OAL) may substitute its own judgment for that of the rule making agency

Question 40

What is the maximum fine for a person who transacts insurance without a valid license?

Answer 40

$50,000 and/or imprisonment for a period not exceeding one year

Question 41

Whether admitted or nonadmitted, how does a "foreign" insurer differ from an "alien" or "domestic" insurer?

Answer 41

A "foreign" insurer is organized under the laws of another state within the United States.

Question 42

The following are all penalties for unlawfully acting as an insurer without a certificate of authority EXCEPT

Answer 42

the individual will be banned from practicing insurance for a period of 5 years

Question 43

Which statement describes the intent of the California FInancial Information Privacy Act?

Answer 43

It provides greater privacy protections than those provided in the federal Gramm-Leach-Bliley Act

Question 44

All of the following are to be specified in an insurance policy EXCEPT

Answer 44

the financial rating of the insured

Question 45

When should an agent provide an applicant the effective date of coverage, if known, or the circumstances under which will be effective?

Answer 45

at the time of application or receipt of premium

Question 46

Which are assets that are in excess of an insurer's liability for reported losses, expenses, taxes, and reinsurance of outstanding risks?

Answer 46

paid-in capital

Question 47

Which is TRUE regarding a life and health agent who has not been specifically appointed by the insurer?

Answer 47

If a policy is issued, the insurer is considered to have authorized the agent to act on its behalf

Question 48

All of the following are examples of representation EXCEPT

Answer 48

it may be altered after the insurance is effected

Question 49

Which of the following provisions of free insurance offered as an incentive to purchase or rent property is TRUE?

Answer 49

it requires a separate charge or fee

Question 50

When working on behalf of an insurer for which they are not specifically appointed, what may a licensed agent do?

Answer 50

present a proposal for insurance and transmit an application to the insurer

Question 51

It is unlawful to do any of the following EXCEPT

Answer 51

make or cause to made a knowingly false or fraudulent or material representation for the purpose of encouraging an innjured worker to claim benefits.

Question 52

All of the following are TRUE regarding regulation and use of an agency name EXCEPT

Answer 52

a name would not be denied on the basis of being too similar to other company names

Question 53

Which group of people is offered additional protection by the Unfair Practices Act that regulates trade practices in the business of insurance?

Answer 53

survivors of the Holocaust

Question 54

As used in the insurance code, the word "shall" is mandatory and the word "may" is permissive EXCEPT

Answer 54

unless otherwise apparent from the context

Question 55

The Insurance Commissioner may deny an application for any license issued for any of the following in good judgment

Answer 55

the applicant is lacking in good judgment

Question 56

Who is eligible to be an insurer?

Answer 56

Any person, company, organization or corporation that is capable of making a contract

Question 57

What does concealment, whether intentional or unintentional, entitle the injured party to?

Answer 57

The insurer may rescind the contract on the basis of misrepresentation, concealment, or fraud by the insured

Question 58

Which of the following actions is considered part of the insurance sales process?

Answer 58

Transaction of matters subsequent to execution of the contract and arising out of it

Question 59

How is the insurance commissioner chosen?

Answer 59

Elected by the people

Question 60

When can a person act as an agent of the insurer?

Answer 60

when the insurer has filed with the commissioner a notice of appointment

Question 61

An agent or representative who issues long term care insurance must do all of the following EXCEPT

Answer 61

Complete a total of 10 hours of continuing education if licensed before January 1st, 2002

Question 62

Which of the following is TRUE regarding change of address for a licensee?

Answer 62

The commissioner must be notified immediately of any change in the personal, business, or email address

Question 63

Which circumstances in a pretext interview determine if the questions are permissible?

Answer 63

When an insured is consulted by a person who hides his true identity on purpose when fraud for a claim is suspected

Question 64

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?

Answer 64

proof of claim

Question 65

Insurance is which type of contract?

Answer 65

One agrees to indemnify against loss, damage or liability arising from a contingent or unknown risk

Question 66

An insurance agent is a person who transacts all of the following types of insurance EXCEPT

Answer 66

life insurance

Question 67

How is an insurance policy defined?

Answer 67

The written instrument, in which a contract of insurance is set forth

Question 68

an "insurance agent" means a person authorized, by and on behalf of an insurer, to transact which of the following class of insurance?

Answer 68

Annuities

Question 69

Concealment, whether intentional or unintentional, entitles the injured party to?

Answer 69

Rescind Insurance

Question 70

Which would permit an insurer to escape insolvency?

Answer 70

possession of assets equal to the total paid-in capital after all liabilities and reinsurance

Question 71

Which form of negotiation is covered under the definition of "transact" as applied to insurance?

Answer 71

Negotiations preliminary to execution

Question 72

What is a solicitor employed to do for a policy other than life?

Answer 72

To aid a property and casualty agent or broker in transacting insurance

Question 73

When should an insurer provide for the continuous operation of a unit or division to investigate possible fraudulent claims

Answer 73

If admitted to do business in this state, except those otherwise exempted

Question 74

how can a licensee surrender any license for cancellation?

Answer 74

by submitting written notice or by delivering the license to the commisioner

Question 75

All of the following are a duty of an insurer in regards to claims on file and record documentation EXCEPT

Answer 75

maintaining any sales material, which had a material impact on the claims process