The California Insurance Code Defines Policy As

Question: The California Insurance Code defines “policy” as a(n)

accepted offer

promissory arrangement

written contract

written quotation

Answer: written contract

A “policy” as described by the California Insurance Code is a written contract in which one party promises to indemnify another against loss that arises from an unknown event.

Question: The California Insurance Code allows an individual how many days to cancel a life policy for a full-refund?

Answer:

Question: Which of the following acts is NOT a Federal offense committed by an insurance agent?

Embezzlement

Insurance fraud

Misrepresentation on an insurance application

Falsify records

Answer: Misrepresenting facts on an insurance application is not considered a Federal offense.

Question: Which of the following is NOT a primary objective of insurance regulation?

Insurance Code enforcement

Licensing agents

Protect policyowners

Interpret policy provisions

Answer: All of these are considered objectives of insurance regulation EXCEPT “interpret policy provisions”.

Question: Which type of jurisdiction requires an insurer to have its rates accepted by the Insurance Department prior to using them?

Answer: A prior approval state requires that an insurance company receives approval for a new insurance rate before it is sent to the public.

Question:

Answer: state program that offers health coverage to California residents who are not able to obtain coverage due to pre-existing conditions

MRMIP is California’s insurance program for people with serious health problems /pre-existing conditions who are not able to buy individual health insurance.

Question: Both the Federal and state governments jointly finance which health insurance entitlement program?

Answer: Medi-Cal is a health entitlement program jointly financed by the Federal and state governments.

Question: An agent has advertised that the insurer to which the agent is appointed with is a member of the Insurance Guarantee Association. This agent has committed a(n)

felony

misdemeanor

unfair method of competition

unauthorized trade practice

Answer: unfair method of competition

It is considered an unfair method of competition for an agent to advertise that the insurer to which the agent is appointed with is a member of the Insurance Guarantee Association.

Question: In California, an insurer organized under the state laws of Oregon is called a(n)

unauthorized insurer

foreign insurer

alien insurer

domestic insurer

Answer: foreign insurer

In California, an insurer organized under the state laws of Oregon is considered a foreign insurer.

Question: Who does a life settlement broker represent?

Answer: A life settlement broker represents the individual wanting to sell their life policy to a third party.