Life 7

Which of the following is not an example of what an insurance policy can provided an insured?

• Help protect from the possibility of a loss

• Reduce the uncertainty of financial loss

• Eliminate the risk of sickness

Select from the choices below the best description of a speculative risk

• Insuring some over the age of 90

• Involving the possibility of a again in addition to the uncertainty of loss

Choose from the following selections the best description of a premiun

• Funds received by an insured from an insurer to realize the benefits of the policy

• Funds received by an insurer from an insured to realize the benefits of the policy

• The amount an insured pays for each unit of coverage. $ 7 for every $1000 of coverage is an example

Which of these is best way to define the concept of “ indemnity “

• It’s only when concealed facts are material that an insurer can resicind or cancel a policy

• Only the insurance company makes a legally enforceable promise

• An insured cannot receive more than an actual economic loss in the event of a claim

Agent must act on behalf of their clients in such a way that uphold their “ fiduciary duty “ . Select best example of this duty from the choices below

• Assuring a claim form is forwarded to the insurer in a timely manner

• Reviewing the insurance needs and coverage for a client periodically

• Quickly sending an insured’s premium to the home office

The doctrine of “ utmost good faith” applies to the business of transacting insurance. Which of the following is an example of its application?

• Each party is entitled to rely upon the representation of the other party

• Answers to applications questions are provided to the best one’s knowledge

• Each party to contract must give valuable consideration

The commissioner has numerous responsibilities and wide-ranging. Authority concerning the California insurance code. Should he deem it necessary, can they rewrite certain sections of the code to better serve the insuring public ?

• Yes, it’s is within the scopes of his duty

• No , only the legislature may pass changes to the code

• Yes, his duty is to adjust the laws to protect the public

Neglecting to communicate that which a part knows , and ought to communicate, so that the other party may make a sound decision is known as :

• Concealment

• Material information

• Boycotting

All of the following statements are correct regarding a “ warranty “ except:

• It is a statement merely made to the best of one’s knowledge, and can only be express

• Should either party violate a warranty it entitles the other party to cancel the contract

• Warranties can be made about events in the past , present or future

To protect ( subject to statutory limitations) life and health owners and insureds in the event of impairment or insolvency of a member insurer . This is a description of :

• Medical

• The California life and health insurance guarantee association

• OBRA