The purpose of the California Life & Health Guarantee Association is to

Protect policyowners against insolvent insurers

Any person who transacts insurance without a license

May be found guilty of a misdemeanor

Which of the following will NOT be considered unfair discrimination?

Providing different benefits based on habits or lifestyle

Which of the following would NOT be considered a misrepresentation?

Showing conservative returns on policy illustrations

Which action by a producer is NOT a reason for the nonrenewal of a license?

Failing to meet insurer sales quotas

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Ch. 8 - Regulations (CA)

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Questions 10

Answers

1
The requirement that an agent must not commingle monies with their own funds is
Fiduciary responsibility
Express authority
Premium accountability
Accepted accounting principal
2
The purpose of the California Life & Health Guarantee Association is to
Protect policyowners against insolvent insurers
Protect state residents against insurance fraud
Regulate domestic insurance companies
Enforce the nonforfeiture laws
3
Any person who transacts insurance without a license
Is permitted without receiving commission
Is committing an act of fraud
Is considered a life solicitor
May be found guilty of a misdemeanor
4
Which of the following will NOT be considered unfair discrimination?
Cancelling individual coverage based on marital status
Providing different benefits based on habits or lifestyle
Assigning risk classifications based on ethnicity
Charging similar applicants different premium rates
5
Which type of authority is an example of the responsibility of an agent to collect premiums?
Implied
Apparent
Limited
Express
6
Who must file a notice of agent appointment with the Department?
The Commissioner
The agent
The insurer
The insured
7
Which of the following would NOT be considered a misrepresentation?
Embellishing the benefits provided in the policy
Implying that a term policy has cash values
Guaranteeing policy dividends
Showing conservative returns on policy illustrations
8
Before transacting insurance, each insurer must obtain a
Business entity license
Certificate of insurance
Certificate of authority
Director’s authorization
9
Which action by a producer is NOT a reason for the nonrenewal of a license?
Misrepresenting policy terms to policyowners
Felony convictions
Failing to meet insurer sales quotas
Failing to complete a continuing education requirement
10
A company organized to return any surplus money to their policyholders is a
Fraternal insurer
Risk retention group
Mutual insurer
Stock company

Ch. 8 - Regulations (CA) Flashcards | StudBud