CALIFORNIA Life, Accident and Health Questions and Answers Graded A+

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CALIFORNIA Life, Accident and Health Questions and Answers Graded A+ A moral hazard ✔✔is a dishonest person (lacking in morals) A morale hazard ✔✔a careless person. A peril ✔✔is a caus... e of loss Pure risk ✔✔is insurable & includes only a chance of loss. The highest premium ✔✔would be found with a substandard risk classification. Agent commissions ✔✔are an insurer expense "Insurance" ✔✔is a contract that transfers risk from one party to another. An "insurance policy" ✔✔is a written contract Neglect to communicate that which a party knows is "concealment" ✔✔may cause the injured party to rescind the policy "Materiality" ✔✔is determined solely by the probable and reasonable influence of the facts upon the part to whom the communication is due The "materiality of concealment" ✔✔is the rule used to determine the importance of the misrepresentation. An insurance policy ✔✔must specify the parties between whom the contract is made The financial rating of an insurer ✔✔is not required to be included in the insurance policy In a direct response marketing system ✔✔the mail and/or internet is used to sell policies, not agents An insurance broker is a person who ✔✔for compensation and on behalf of another person, transacts insurance. An insurance agent is a person who ✔✔for compensation, transacts insurance for the insurer. An insurance solicitor ✔✔is a person employed by an insurance agent or broker to aid in insurance transactions A person can always use their legal name ✔✔to transact insurance The state may disapprove the use of any true or fictitious name except ✔✔a person's legal name An insurance agent or broker hires a third party to prepare their website ✔✔The insurance agent or broker, not the third party, is responsible for the content of the website. [Show More]

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