CA PSI Site - Life, Accident and Health Agent Examination (Life Agent) Already Pass

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CA PSI Site - Life, Accident and Health Agent Examination (Life Agent) Already Pass Admitted Insurance Company vs. Non-Admitted Insurance Company ✔✔An admitted insurance company is authorized ... to transact insurance in California because it has a Certificate of Authority granted by the California Department of Insurance (CDI) A non-admitted insurance company is not authorized to transact insurance in California because of failing to comply with California requirements or did not seek admission Pure Risk vs. Speculative Risk ✔✔Pure risks are insurable but Speculative risks are not Pure Risks - A possibility of loss, no loss, or gain Pure Risk - A possibility of loss or no loss; there is no possibility for gain Contract of Adhesion ✔✔One party writes the contract without inout from the other party on a "take-it-or-leave-it" basis Aleatory Contract ✔✔The exchange of value is unequal. Insured's premium payment is less than the potential benefit to be received in the event of a loss. Indemnity Contract ✔✔An agreement to pay on behalf of another party under specified circumstances Unilateral Contract ✔✔Only one party is legally bound to the contractual obligations after the premium is paid to the insurer Only the insurer makes a promise of future performance, and only the insurer can be charged with breach of contract 4 elements of a valid contract ✔✔1) Competent Parties 2) Legal Purpose 3) Agreement (offer and acceptance) 4) Consideration Preferred Risks vs Standard Risks ✔✔Standard Risks are individuals who have the same health, habits, sex/gender, and occupational characteristics as those reflected in the mortality table Preferred Risks are individuals who meet certain requirements and qualify for lower premiums because of ideal health, height and weight [Show More]

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