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General Insurance Practice Questions — Page 7 of 10

490 free general insurance questions for the California Life & Health insurance license exam. Pick any question — answer it and get the full 3-part explanation, no signup required.

  1. 301.Under 18 U.S.C. Section 1033, a person convicted of a felony involving dishonesty or breach of trust may no…
    Difficulty 3/5
  2. 302.With respect to records of insurance transactions, a licensed agent is generally required to:
    Difficulty 2/5
  3. 303.Adverse selection in health insurance occurs primarily because:
    Difficulty 2/5
  4. 304.A producer completes the application with the applicant, observes the applicant's appearance, and verifies …
    Difficulty 2/5
  5. 305.Under 18 U.S.C. Section 1033, a person convicted of a felony involving dishonesty or breach of trust:
    Difficulty 3/5
  6. 306.In the underwriting process, the producer or agent assists the applicant with the application and gathers i…
    Difficulty 2/5
  7. 307.A health plan allows only higher-risk individuals to keep enrolling while healthy members drop their covera…
    Difficulty 2/5
  8. 308.A health policy includes a preexisting condition exclusion and a waiting period before coverage of those co…
    Difficulty 3/5
  9. 309.Adverse selection is generally a greater concern in individually underwritten policies than in group plans …
    Difficulty 2/5
  10. 310.How can a producer helping an applicant complete a health insurance application most directly help the insu…
    Difficulty 2/5
  11. 311.Under guaranteed-issue health coverage, applicants cannot be turned down for health reasons. The principal …
    Difficulty 2/5
  12. 312.A firm that performs administrative services for an insurer — such as processing claims, billing, and enrol…
    Difficulty 2/5
  13. 313.To verify an applicant's medical history, an insurer most commonly requests:
    Difficulty 1/5
  14. 314.A life insurance illustration showing projected cash values and premiums is best understood as:
    Difficulty 2/5
  15. 315.An individual health insurer requires a detailed medical history questionnaire before issuing a policy. Thi…
    Difficulty 2/5
  16. 316.Group health insurance tends to reduce adverse selection compared with voluntary individual coverage primar…
    Difficulty 2/5
  17. 317.An annual life insurance policy is cancelled after three months. The portion of the premium covering the re…
    Difficulty 2/5
  18. 318.An insurance policy is governed by contract law, which is a branch of:
    Difficulty 1/5
  19. 319.Group health insurance typically experiences less adverse selection than individually issued coverage prima…
    Difficulty 3/5
  20. 320.Which statement correctly distinguishes adverse selection from moral hazard?
    Difficulty 2/5
  21. 321.Errors and omissions (E&O) insurance for insurance agents is designed to protect the agent against:
    Difficulty 1/5
  22. 322.When underwriting reveals a condition that increases the applicant's risk, the insurer is most likely to:
    Difficulty 2/5
  23. 323.Tort law is primarily concerned with:
    Difficulty 1/5
  24. 324.Which statement correctly distinguishes a contract from a tort?
    Difficulty 1/5
  25. 325.A driver negligently runs a red light and injures a pedestrian. The injured pedestrian's right to recover d…
    Difficulty 1/5
  26. 326.An insurer wrongfully refuses to pay a covered disability benefit that the policy clearly promises. If the …
    Difficulty 2/5
  27. 327.An individual health policy imposes a waiting period before coverage applies to preexisting conditions. Thi…
    Difficulty 3/5
  28. 328.Classifying applicants into standard, substandard, and preferred risk classes primarily helps an insurer:
    Difficulty 2/5
  29. 329.Errors and omissions (E&O) insurance protects an insurance agent by:
    Difficulty 2/5
  30. 330.When an insurer wrongfully refuses to pay a covered claim, the measure of the insured's recovery in a contr…
    Difficulty 2/5
  31. 331.An insurer refuses to pay a covered hospital bill, and an agent who sold the policy negligently misrepresen…
    Difficulty 2/5
  32. 332.In an accident and health insurance contract, the insured's consideration is the premium payment, and the i…
    Difficulty 1/5
  33. 333.An insurance contract arranged to further an illegal purpose would most likely be:
    Difficulty 2/5
  34. 334.An insurance agent negligently tells a client that a preexisting condition will be covered when it will not…
    Difficulty 2/5
  35. 335.The underwriting department's primary role in an A&H insurer is to:
    Difficulty 1/5
  36. 336.An insurance agent's appointment by an insurer means that:
    Difficulty 2/5
  37. 337.An insurance policy is a matter of contract law rather than tort law because:
    Difficulty 1/5
  38. 338.Which statement correctly distinguishes 'lapse' from 'cancellation'?
    Difficulty 2/5
  39. 339.An agent has two similar life policies available: Policy X pays the agent a higher commission but provides …
    Difficulty 3/5
  40. 340.A group health plan covering all employees of a large employer distributes risk by:
    Difficulty 2/5
  41. 341.An applicant applied for a health policy with a $500 deductible, but the insurer issued a policy with a $1,…
    Difficulty 3/5
  42. 342.An applicant submits an application for a policy with a $50,000 benefit, and the insurer issues a policy wi…
    Difficulty 2/5
  43. 343.A person negligently causes another's injury and must compensate the injured party. This obligation arises …
    Difficulty 2/5
  44. 344.A life insurer markets and sells policies directly to consumers through mail, telephone, and the internet w…
    Difficulty 1/5
  45. 345.A 16-year-old signs an application for an individual disability policy without a parent's involvement. Rega…
    Difficulty 2/5
  46. 346.In an individual health insurance transaction, which of the following typically constitutes the offer?
    Difficulty 1/5
  47. 347.In the underwriting process, the producer's (agent's) primary responsibility is to:
    Difficulty 2/5
  48. 348.An applicant signs a health insurance application after the agent falsely promises that an existing heart c…
    Difficulty 2/5
  49. 349.An insurance policy is a contract of adhesion, which means that:
    Difficulty 1/5
  50. 350.An insured wants to transfer her individual disability policy to a friend as a gift. Which statement correc…
    Difficulty 2/5