General Insurance Practice Questions — Page 9 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.
- 401.A person who stops skydiving because the injury risk is unacceptable is practicing:Difficulty 2/5
- 402.Which statement best reflects the relationship between law and ethics for insurance producers?Difficulty 1/5
- 403.Because an insurance policy is a contract of adhesion, any ambiguity in the policy language is generally co…Difficulty 2/5
- 404.The key difference between a mutual insurance company and a stock insurance company is that a mutual compan…Difficulty 1/5
- 405.Which of the following is a policy or regulatory device specifically designed to help insurers control mora…Difficulty 3/5
- 406.All of the following are characteristics of an ideally insurable risk EXCEPT:Difficulty 1/5
- 407.According to the ethical duties of insurance producers, when recommending a life insurance product, the age…Difficulty 2/5
- 408.Regarding insurable interest, a person has an unlimited insurable interest in:Difficulty 1/5
- 409.A fraternal benefit society differs from a stock life insurance company primarily in that it:Difficulty 2/5
- 410.An insurer rescinds a life insurance policy because the applicant made a material misrepresentation in the …Difficulty 2/5
- 411.The statement that "the law is not a complete guide to ethics" means that:Difficulty 2/5
- 412.The four principal departments or functional areas of a typical insurance company are:Difficulty 1/5
- 413.In a reinsurance arrangement, the insurer that transfers a portion of its risk to a reinsurer is called the:Difficulty 2/5
- 414.In a voluntary health insurance pool, several healthy members allow their coverage to lapse while the sicke…Difficulty 2/5
- 415.A life insurance policy is issued with the signed application attached to it. For purposes of the insurance…Difficulty 1/5
- 416.When an insurer sells policies directly to consumers by mail, telephone, or the internet without the involv…Difficulty 1/5
- 417.An insurer writes only 40 disability policies in a new occupational class and prices the group using its ow…Difficulty 3/5
- 418.Under the federal Gramm-Leach-Bliley Act (GLBA), insurance companies and agents must:Difficulty 2/5
- 419.A fraternal benefit society is best described as a(n):Difficulty 1/5
- 420.A contract to pay a person money if a stranger is hospitalized is signed by a party with no connection to t…Difficulty 2/5
- 421.A mutual life insurance company is owned by its:Difficulty 2/5
- 422.In insurance terminology, "risk" is most accurately defined as:Difficulty 1/5
- 423.A windstorm tears the roof off a house and the homeowner files a claim. For insurance classification purpos…Difficulty 1/5
- 424.An insured regularly burns trash in a dry field near a wooden shed; a stray spark ignites the shed. Which o…Difficulty 2/5
- 425.A family owns a home, two vehicles, and a small rental property and could suffer financial loss if any of t…Difficulty 2/5
- 426.A small business decides to absorb minor equipment repairs out of pocket but buys commercial insurance for …Difficulty 2/5
- 427.A family decides not to purchase a motorcycle because they consider the crash risk unacceptable. This is an…Difficulty 1/5
- 428.Which loss generally would NOT be insurable because it fails the requirement that losses be fortuitous?Difficulty 2/5
- 429.The doctrine of utmost good faith in an insurance contract requires:Difficulty 2/5
- 430.Life insurance is a "valued" contract rather than a strict indemnity contract. This means the insurer:Difficulty 2/5
- 431.The primary purpose of underwriting in life insurance is to:Difficulty 1/5
- 432.A dispute over whether an insurer must pay a claim under the terms of a life policy is governed primarily by:Difficulty 2/5
- 433.In the typical life insurance transaction, when is the offer to contract generally considered made?Difficulty 2/5
- 434.An insurance policy is called a contract of adhesion because it:Difficulty 2/5
- 435.An insurance contract is described as unilateral because:Difficulty 1/5
- 436.Insurance is a conditional contract because the insurer's obligation to pay benefits is conditioned on:Difficulty 2/5
- 437.In insurance terminology, the "premium" is best described as:Difficulty 2/5
- 438.An "unearned premium" is best defined as:Difficulty 1/5
- 439.A life policy terminates because the insured failed to pay the premium when due. This termination is best d…Difficulty 2/5
- 440.A life insurance producer who contracts to sell policies exclusively for one insurer is known as a:Difficulty 1/5
- 441.An insurer sells life insurance through the mail, telephone, and its website, soliciting consumers directly…Difficulty 2/5
- 442.In an insurance transaction, within the scope of the agency relationship, an agent represents:Difficulty 1/5
- 443.A life agent who completes field underwriting for an application is responsible for:Difficulty 2/5
- 444.The federal statute at 18 USC Section 1033 is intended to:Difficulty 2/5
- 445.Errors and omissions (E&O) insurance is designed to protect an insurance agent against:Difficulty 1/5
- 446.The four principal operating departments of a typical insurance company are:Difficulty 1/5
- 447.In a reinsurance arrangement, the primary insurer that transfers part of its risk to a reinsurer is called …Difficulty 2/5
- 448.An insurance agent who represents several different insurers and can place a client's coverage with any of …Difficulty 1/5
- 449.A mutual insurance company is owned by:Difficulty 2/5
- 450.An insurer purchases reinsurance primarily to:Difficulty 1/5