State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Under Section 785(b), in an action alleging a breach of the senior duty of good faith and fair dealing, which conduct is relevant?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Section 785(b) provides that the conduct of the insurer, broker, agent, or other person engaged in the transaction of insurance, during the offer and sale of a policy or certificate previous to the purchase, is relevant to any action alleging a breach of the duty of good faith and fair dealing. This means the sales process itself, the marketing, representations, and disclosures made before the senior signs, can be scrutinized in court.
Why the other options are wrong
- B) The statutory relevance focuses on pre-purchase sales conduct; underwriting decisions alone are not the referenced conduct.
- C) The consumer's investment history is a suitability factor, not evidence of the producer's breach.
- D) The provision looks at the offer-and-sale phase before purchase, not at an after-sale policy review.
Memory hook
What was said and done to close the sale with a senior is fair game in court: the pre-purchase pitch is on the record.