California P&c Insurance Practice Test Questions And Ans (Pdf)

A POLICY THAT COMBINES WHOLE LIFE ON THE BREADWINNER AND TERM ON THE SPOUSE AND CHILDREN IS CALLED A {Ans: FAMILY POLICY}A LIFE INSURANCE DEATH BENEFIT PAID IN A LUMP SUM TO A BENEFICIARY IS {Ans: NOT SUBJECT TO ANY TAXES}IF A MISSTATEMENT OF AGE IS DISCOVERED DURING THE PROCESSING OF A LIFE INSURANCE CLAIM, THE INSURER WILL {Ans: ADJUST THE DEATH BENEFIT}THE RISK OF A LOSS TO AN INSURANCE COMPANY IS ALSO REFERRED TO AS A/AN {Ans: EXPOSURE}INSURANCE CONTRACTS ARE BASED UPON A DOCTRINE WHICH REQUIRES ALL PARTIES TO THE CONTRACT TO BE HONEST. THIS IS KNOWN AS THE DOCTRINE OF {Ans: UTMOST GOOD FAITH}THE LAW OF LARGE NUMBERS ALLOWS AN INSURANCE COMPANY TO PREDICT THE EXPECTED LOSSES AMONG {Ans: MEMBERS OF A GROUP OF INDIVIDUALS WITH SIMILAR RISKS}UNDERWRITING IS THE PROCESS OF {Ans: DETERMINING THE COMPANY'S RISK REGARDING A PROPOSED INSURED}WHICH OF THE FOLLOWING IS NOT A RISK MANAGEMENT TECHNIQUE? {Ans: EXPOSURE}WHICH STATEMENT IS INCORRECT ABOUT A FIXED ANNUITY? {Ans: INCOME PAYMENTS VARY FROM MONTH TO MONTH}WITH A MODIFIED PREMIUM WHOLE LIFE CONTRACT, PREMIUM PAYMENTS ARE {Ans: LOWER IN THE EARLY YEARS OF THE CONTRACT}