California Life, Accident and Health Insurance Regulations, Exams of Nursing

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300QUESTIONS AND ANSWERS LATEST UPDATE 2024/

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The rules regarding life insurance policy illustrations are not - correct answers intended to ensure that the illustration specify that nonguaranteed elements will continue unchanged for all years shown. The rules regarding life insurance policy illustrations are not - correct answers intended to ensure that the illustration specify that nonguaranteed elements will continue unchanged for all years shown. If an insurer is inadvertently found guilty of unfair trade practices while issuing, renewing and servicing a policy - correct answers the insurer could be prosecuted for three violations, one for each act If an insurer is inadvertently found guilty of unfair trade practices while issuing, renewing and servicing a policy - correct answers the insurer could be prosecuted for three violations, one for each act If an individual increases their insurance policy limits - correct answers they are not eliminating their risk; they are transferring more of their risk. If an individual increases their insurance policy limits - correct answers they are not eliminating their risk; they are

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transferring more of their risk. An insurance binder always creates immediate coverage which - correct answers is the main difference between a binder and a conditional receipt. An insurance binder always creates immediate coverage which - correct answers is the main difference between a binder and a conditional receipt. Under the California Insurance Code (CIC) life insurance agents cannot - correct answers issue binders Under the California Insurance Code (CIC) life insurance agents cannot - correct answers issue binders If an organization terminates a key employee, the organization will - correct answers still be eligible to hold a license as their organization will be unaffected. If an organization terminates a key employee, the organization will - correct answers still be eligible to hold a license as their organization will be unaffected. If the insurance Commissioner issues a Notice of Seizure for documents and the agent fails to produce

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the documents - correct answers they would be subject to up to one (1) year in jail and/or a $1,000 fine. If the insurance Commissioner issues a Notice of Seizure for documents and the agent fails to produce the documents - correct answers they would be subject to up to one (1) year in jail and/or a $1,000 fine. Agents who receive commission related to premium financing - correct answers must keep their records for three (3) years. Agents who receive commission related to premium financing - correct answers must keep their records for three (3) years. The rate - correct answers is the cost per exposure unit. The rate - correct answers is the cost per exposure unit. To authorize the release of an attending physician's report, - correct answers the applicant must sign a consent form. To authorize the release of an attending physician's report, - correct answers the applicant must sign a consent form.

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Members of the Medical Information Bureau are required - correct answers to report medical impairments found during the underwriting process Members of the Medical Information Bureau are required - correct answers to report medical impairments found during the underwriting process The request for an attending physician's report must be - correct answers accompanied by a copy of the signed authorization. The request for an attending physician's report must be - correct answers accompanied by a copy of the signed authorization. Life insurance companies are members of the - correct answers Medical Information Bureau Life insurance companies are members of the - correct answers Medical Information Bureau Mutual insurers - correct answers are owned by policyholders Mutual insurers - correct answers are owned by policyholders

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Upon the death of a licensed agent, - correct answers , the agent's license will be terminated. Upon the death of a licensed agent, - correct answers , the agent's license will be terminated. Under the CIC, if an applicant enters a plea of "nolo contendere," - correct answers they will be convicted. Nolo contendere is Latin for no contest. Under the CIC, if an applicant enters a plea of "nolo contendere," - correct answers they will be convicted. Nolo contendere is Latin for no contest. When replacing a policy - correct answers the agent is not required to send a copy of the replacement notice to the existing insurer. The new insurance company will provide notice to the existing insurer. When replacing a policy - correct answers the agent is not required to send a copy of the replacement notice to the existing insurer. The new insurance company will provide notice to the existing insurer.

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In order to remain financially solvent under the CIC, an insurer must have enough assets to - correct answers provide for its liabilities and for reinsurance for all outstanding risks and must also meet minimum requirements equal to their paid-in capital (value of company if liquidated) In order to remain financially solvent under the CIC, an insurer must have enough assets to - correct answers provide for its liabilities and for reinsurance for all outstanding risks and must also meet minimum requirements equal to their paid-in capital (value of company if liquidated) In insurance terms, a representation - correct answers can be considered an implied warranty In insurance terms, a representation - correct answers can be considered an implied warranty If an agent is engaging in unfair methods of competition, they are subject to penalties of - correct answers no more than $5,000 for each act, not to exceed $10,000 if the act is judged to be willful If an agent is engaging in unfair methods of competition, they are subject to penalties of - correct answers no more than $5,000 for each act, not to exceed $10,000 if the act is judged to be willful

300QUESTIONS AND ANSWERS LATEST UPDATE 2024/

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Individuals who hold a Life-Only and/or an Accident and Health license must - correct answers complete 24 hours of Continuing Education every two (2) years in order to renew their license. Individuals who hold a Life-Only and/or an Accident and Health license must - correct answers complete 24 hours of Continuing Education every two (2) years in order to renew their license. Concealment - correct answers is when a party fails to communicate that which a party knows, and ought to communicate, so that the other party may make a sound decision. Concealment - correct answers is when a party fails to communicate that which a party knows, and ought to communicate, so that the other party may make a sound decision. Replacement is when you replace your customer's current policy with a new one and - correct answers is not illegal. However, you would not replace your customer's policy if the new policy is worse and the premium is higher. This would be considered twisting and is illegal Replacement is when you replace your customer's current policy with a new one and - correct answers is not illegal. However, you would not replace your customer's policy if the new policy is worse and the premium is

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higher. This would be considered twisting and is illegal A captive insurer - correct answers is an insurer created by a corporation to insure its own risks. A captive insurer - correct answers is an insurer created by a corporation to insure its own risks. If a company decides to self-insure - correct answers this decision would not have any impact on claims severity If a company decides to self-insure - correct answers this decision would not have any impact on claims severity The California Life and Health Insurance Guarantee Association (CLHIGA) does not cover - correct answers employer self-funded plans. The California Life and Health Insurance Guarantee Association (CLHIGA) does not cover - correct answers employer self-funded plans. The California Life and Health Insurance Guarantee Association (CLHIGA) - correct answers does not cover group stoploss plans.

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The California Life and Health Insurance Guarantee Association (CLHIGA) - correct answers does not cover group stoploss plans. An insurance policy must specify all of the following EXCEPT: - correct answers Financial Rating of the insurer An insurance policy must specify all of the following EXCEPT: - correct answers Financial Rating of the insurer All of the following would be considered a violation of federal law EXCEPT: - correct answers Providing false information on an insurance application All of the following would be considered a violation of federal law EXCEPT: - correct answers Providing false information on an insurance application A person convicted of the federal law regulating issues that affect the insurance industry and interstate commerce can be sentenced to how many years in prison? - correct answers 10 or 15 A person convicted of the federal law regulating issues that affect the insurance industry and interstate commerce can be sentenced to how many years in prison? - correct answers 10 or 15

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A person found guilty of a violation of the federal law regulating issues that affect the insurance industry and interstate commerce can be subject to a civil penalty of up to: - correct answers $50, A person found guilty of a violation of the federal law regulating issues that affect the insurance industry and interstate commerce can be subject to a civil penalty of up to: - correct answers $50, Which of the following classes of insurance is exempt from the California Insurance Guarantee Association (CIGA)? - correct answers Life and annuity Which of the following classes of insurance is exempt from the California Insurance Guarantee Association (CIGA)? - correct answers Life and annuity All of the following are true regarding warranties in an insurance contract EXCEPT:

• correct answers A particular form of words is necessary to create a warranty All of the following are true regarding warranties in an insurance contract EXCEPT:
• correct answers A particular form of words is necessary to create a warranty A moral hazard - correct answers is a dishonest person (lacking in morals)

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A moral hazard - correct answers is a dishonest person (lacking in morals) A morale hazard - correct answers a careless person. A morale hazard - correct answers a careless person. A peril - correct answers is a cause of loss A peril - correct answers is a cause of loss Pure risk - correct answers is insurable & includes only a chance of loss. Pure risk - correct answers is insurable & includes only a chance of loss. The highest premium - correct answers would be found with a substandard risk classification. The highest premium - correct answers would be found with a substandard risk classification. Agent commissions - correct answers are an insurer expense Agent commissions - correct answers are an insurer expense

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"Insurance" - correct answers is a contract that transfers risk from one party to another. "Insurance" - correct answers is a contract that transfers risk from one party to another. An "insurance policy" - correct answers is a written contract An "insurance policy" - correct answers is a written contract Neglect to communicate that which a party knows is "concealment" - correct answers may cause the injured party to rescind the policy Neglect to communicate that which a party knows is "concealment" - correct answers may cause the injured party to rescind the policy "Materiality" - correct answers is determined solely by the probable and reasonable influence of the facts upon the part to whom the communication is due "Materiality" - correct answers is determined solely by the probable and reasonable influence of the facts upon the part to whom the communication is due

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The "materiality of concealment" - correct answers is the rule used to determine the importance of the misrepresentation. The "materiality of concealment" - correct answers is the rule used to determine the importance of the misrepresentation. An insurance policy - correct answers must specify the parties between whom the contract is made An insurance policy - correct answers must specify the parties between whom the contract is made The financial rating of an insurer - correct answers is not required to be included in the insurance policy The financial rating of an insurer - correct answers is not required to be included in the insurance policy In a direct response marketing system - correct answers the mail and/or internet is used to sell policies, not agents In a direct response marketing system - correct answers the mail and/or internet is used to sell policies, not agents

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An insurance broker is a person who - correct answers for compensation and on behalf of another person, transacts insurance. An insurance broker is a person who - correct answers for compensation and on behalf of another person, transacts insurance. An insurance agent is a person who - correct answers for compensation, transacts insurance for the insurer. An insurance agent is a person who - correct answers for compensation, transacts insurance for the insurer. An insurance solicitor - correct answers is a person employed by an insurance agent or broker to aid in insurance transactions An insurance solicitor - correct answers is a person employed by an insurance agent or broker to aid in insurance transactions A person can always use their legal name - correct answers to transact insurance

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A person can always use their legal name - correct answers to transact insurance The state may disapprove the use of any true or fictitious name except - correct answers a person's legal name The state may disapprove the use of any true or fictitious name except - correct answers a person's legal name An insurance agent or broker hires a third party to prepare their website - correct answers The insurance agent or broker, not the third party, is responsible for the content of the website. An insurance agent or broker hires a third party to prepare their website - correct answers The insurance agent or broker, not the third party, is responsible for the content of the website. An admitted insurer - correct answers is an insurer entitled to transact business in this state An admitted insurer - correct answers is an insurer entitled to transact business in this state A mutual insurer - correct answers is owned by the policyholders and issues participating policies

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A mutual insurer - correct answers is owned by the policyholders and issues participating policies The Insurance Commissioner in California - correct answers is elected by the people. The Insurance Commissioner in California - correct answers is elected by the people. The Insurance Commissioner may serve - correct answers up to two (2) four-year terms The Insurance Commissioner may serve - correct answers up to two (2) four-year terms A mutual insurer must pay out - correct answers dividends at minimum annually. A mutual insurer must pay out - correct answers dividends at minimum annually. An insurance policy - correct answers is a legal contract. An insurance policy - correct answers is a legal contract. A representation in an insurance contract - correct answers is an implied warranty

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A representation in an insurance contract - correct answers is an implied warranty Concealment, whether intentional or unintentional, entitles the injured party to - correct answers rescind an insurance contract. Concealment, whether intentional or unintentional, entitles the injured party to - correct answers rescind an insurance contract. Agents of insurers who utilize "direct response" marketing systems do not - correct answers conduct personal interviews with customers. Agents of insurers who utilize "direct response" marketing systems do not - correct answers conduct personal interviews with customers. Any person who transacts insurance without a valid license - correct answers is guilty of a misdemeanor. Any person who transacts insurance without a valid license - correct answers is guilty of a misdemeanor.

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Transacting insurance does not include subscribing to newspapers that - correct answers other agents advertise in Transacting insurance does not include subscribing to newspapers that - correct answers other agents advertise in It is the insurer who is responsible for - correct answers filing an agent's appointment with the Commissioner It is the insurer who is responsible for - correct answers filing an agent's appointment with the Commissioner A solicitor - correct answers is employed by an insurance agent or broker A solicitor - correct answers is employed by an insurance agent or broker When a partnership is dissolved - correct answers it ceases to be eligible to hold a license When a partnership is dissolved - correct answers it ceases to be eligible to hold a license Insurance licenses may be renewed by - correct answers submitting the applicable renewal application and fee

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Insurance licenses may be renewed by - correct answers submitting the applicable renewal application and fee Licensees must notify the Commissioner of a change in their background information - correct answers within 30 days. Licensees must notify the Commissioner of a change in their background information - correct answers within 30 days. It is a misdemeanor to refuse to deliver any books or records to the Commissioner

• correct answers once a seizure order has been executed in an insolvency proceeding It is a misdemeanor to refuse to deliver any books or records to the Commissioner
• correct answers once a seizure order has been executed in an insolvency proceeding Under the California File and Record documentation rules, every licensees' claim files - correct answers are subject to examination by the Commissioner for the current year and the preceding four years. Under the California File and Record documentation rules, every licensees' claim files - correct answers are subject to examination by the Commissioner for the current year and the preceding four years.

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A "loss exposure" - correct answers is a condition that could result in a loss. A "loss exposure" - correct answers is a condition that could result in a loss. Gambling - correct answers is an example of speculative risk. Gambling - correct answers is an example of speculative risk. Insurance contracts are considered to be "unilateral" since - correct answers only one party to the contract makes an enforceable promise Insurance contracts are considered to be "unilateral" since - correct answers only one party to the contract makes an enforceable promise The word "may" - correct answers implies permissiveness. The word "may" - correct answers implies permissiveness. A "claimant" - correct answers is a person who asserts a right of recovery under an insurance policy.

300QUESTIONS AND ANSWERS LATEST UPDATE 2024/2025

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A "claimant" - correct answers is a person who asserts a right of recovery under an insurance policy. Insurers are not allowed to discriminate in their claim settlement practices based upon a person's - correct answers race, age, gender, income, religion, language, sexual orientation, ancestry, national origin, or physical disability Insurers are not allowed to discriminate in their claim settlement practices based upon a person's - correct answers race, age, gender, income, religion, language, sexual orientation, ancestry, national origin, or physical disability An insurance agent or broker must include on their website the following: - correct answers o Their name, as it appears on their license, as well as any other fictitious name approved by the Commissioner o The state of their domicile and principal place of business o Their license number An insurance agent or broker must include on their website the following: - correct answers o Their name, as it appears on their license, as well as any other fictitious name approved by the Commissioner o The state of their domicile and principal place of business o Their license number

300QUESTIONS AND ANSWERS LATEST UPDATE 2024/2025

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The Law of Large Numbers states that the more similar risks the insurance company combines together - correct answers the better they can guess approximately how many losses they will have in a given time period The Law of Large Numbers states that the more similar risks the insurance company combines together - correct answers the better they can guess approximately how many losses they will have in a given time period A speculative risk - correct answers is a risk situation that includes a chance of loss and a potential for gain A speculative risk - correct answers is a risk situation that includes a chance of loss and a potential for gain Speculative risks - correct answers are not insurable. Speculative risks - correct answers are not insurable. An insurer organized in California and selling in California - correct answers is considered to be a domestic insurer in California. An insurer organized in California and selling in California - correct answers is considered to be a domestic insurer in California.

300QUESTIONS AND ANSWERS LATEST UPDATE 2024/2025

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An insurance company based in Utah that is selling in California - correct answers is a foreign insurer in California An insurance company based in Utah that is selling in California - correct answers is a foreign insurer in California An insurance company that has enough reserves to pay for all its liabilities - correct answers is referred to as a solvent insurer. An insurance company that has enough reserves to pay for all its liabilities - correct answers is referred to as a solvent insurer. The State Insurance Guarantee Fund provides protection to policyholders whose - correct answers insurer becomes insolvent (financially impaired). This fund only covers member insurers (licensed insurance companies). The State Insurance Guarantee Fund provides protection to policyholders whose - correct answers insurer becomes insolvent (financially impaired). This fund only covers member insurers (licensed insurance companies).

300QUESTIONS AND ANSWERS LATEST UPDATE 2024/2025

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An insurance company that is based in Canada and doing business in California - correct answers a alien insurer in California. An insurance company that is based in Canada and doing business in California - correct answers a alien insurer in California. An insurance company that has enough reserves to pay for all its liabilities - correct answers is referred to as a solvent insurer. An insurance company that has enough reserves to pay for all its liabilities - correct answers is referred to as a solvent insurer. The State Insurance Guarantee Fund provides protection to policyholders whose insurer becomes insolvent (financially impaired). - correct answers This fund only covers member insurers (licensed insurance companies). The State Insurance Guarantee Fund provides protection to policyholders whose insurer becomes insolvent (financially impaired). - correct answers This fund only covers member insurers (licensed insurance companies).

300QUESTIONS AND ANSWERS LATEST UPDATE 2024/2025

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An insurance company that is based in Canada and doing business in California - correct answers is an alien insurer. An insurance company that is based in Canada and doing business in California - correct answers is an alien insurer. If the insurer discovers the insured has violated a material warranty, - correct answers they can rescind the contract (void the policy). If the insurer discovers the insured has violated a material warranty, - correct answers they can rescind the contract (void the policy). An intentional concealment entitles the injured party - correct answers the option to rescind the contract An intentional concealment entitles the injured party - correct answers the option to rescind the contract Neither party to a contract of insurance is bound to communicate, even upon inquiry, information of his own judgment upon - correct answers the matters in question. Neither party to a contract of insurance is bound to communicate, even upon inquiry, information of