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General Insurance Practice Questions — Page 8 of 10

490 free general insurance questions for the California Life & Health insurance license exam. Pick any question — answer it and get the full 3-part explanation, no signup required.

  1. 351.During a claims review, an insurance professional develops a reasonable belief that a submitted claim is fr…
    Difficulty 2/5
  2. 352.An applicant signs a health insurance application after the agent falsely promises that an existing heart c…
    Difficulty 2/5
  3. 353.An insured wants to transfer her individual disability policy to a friend as a gift. Which statement correc…
    Difficulty 2/5
  4. 354.Which of the following is NOT one of the four major departments of an insurance company?
    Difficulty 1/5
  5. 355.A tort such as negligence differs from a breach of contract because a tort duty is:
    Difficulty 2/5
  6. 356.A policy is drafted entirely by the insurer, the insured's duty to keep paying premiums is a condition rath…
    Difficulty 2/5
  7. 357.In an insurance contract, the insured's consideration consists of:
    Difficulty 2/5
  8. 358.An applicant who has been judicially declared legally incompetent applies for and is issued a health policy…
    Difficulty 2/5
  9. 359.An insurance contract is called a unilateral contract because:
    Difficulty 3/5
  10. 360.Under 18 USC Section 1033, a person convicted of a felony involving dishonesty or a breach of trust:
    Difficulty 3/5
  11. 361.When an insurer transfers part of its risk to another insurer through reinsurance, the insurer that transfe…
    Difficulty 1/5
  12. 362.A health insurance policy is described as a personal contract, which means that it:
    Difficulty 2/5
  13. 363.A physician's negligent treatment that injures a patient is addressed under which body of law?
    Difficulty 2/5
  14. 364.A disability policy requires the insured to pay premiums when due, give timely notice of claim, and submit …
    Difficulty 2/5
  15. 365.An agent threatens to disclose an applicant's private medical information to his employer unless the applic…
    Difficulty 2/5
  16. 366.An insurer issues a policy to indemnify a person for fines that would be imposed for operating an illegal g…
    Difficulty 2/5
  17. 367.Which of the following is one of the principal departments or functional divisions of an insurance company?
    Difficulty 1/5
  18. 368.Which of the following is the foremost ethical duty of an insurance producer under the industry's ethical s…
    Difficulty 1/5
  19. 369.In a mutual insurance company, the owners of the company are the:
    Difficulty 2/5
  20. 370.Because insurance policies are contracts of adhesion, ambiguous policy language is generally interpreted:
    Difficulty 2/5
  21. 371.An agent states, 'As long as I follow the letter of the Insurance Code, I am being ethical.' Is this statem…
    Difficulty 3/5
  22. 372.In an individual health insurance transaction, the completed and signed application is generally treated as:
    Difficulty 2/5
  23. 373.When an insurance company transfers part of its risk to another insurer, the company that transfers the ris…
    Difficulty 1/5
  24. 374.An underwriter states that a proposed insured presents 'a high degree of risk.' This means the insured has:
    Difficulty 2/5
  25. 375.An insured fails to pay a health insurance premium when due, and the applicable grace period expires withou…
    Difficulty 2/5
  26. 376.A health insurance policy is an adhesion contract. If a policy provision is ambiguous, the ambiguity will g…
    Difficulty 2/5
  27. 377.A policyholder signs a form directing the insurer to pay a hospital directly for a hospitalization that has…
    Difficulty 3/5
  28. 378.Errors and omissions (E&O) insurance protects an insurance agent against claims arising from:
    Difficulty 1/5
  29. 379.In an insurance contract, the insurer's consideration is:
    Difficulty 1/5
  30. 380.A mutual insurance company is characterized by:
    Difficulty 1/5
  31. 381.Under the federal Gramm-Leach-Bliley Act (GLBA), insurers and other financial institutions must:
    Difficulty 2/5
  32. 382.An insurance policy is called a unilateral contract because:
    Difficulty 1/5
  33. 383.The reason insurance is built around pure risk rather than speculative risk is that pure risk:
    Difficulty 1/5
  34. 384.Because an insurance contract is unilateral — only the insurer makes a legally enforceable promise — what i…
    Difficulty 2/5
  35. 385.A client asked his agent in writing to add a disability income rider to an existing policy, but the agent f…
    Difficulty 2/5
  36. 386.An accident and health policy's insuring clause states that it covers 'sickness and accidental bodily injur…
    Difficulty 2/5
  37. 387.Which of the following is one of the four principal departments or functions of an insurance company?
    Difficulty 1/5
  38. 388.A contract of insurance that covers the insured's planned criminal activity would fail which essential elem…
    Difficulty 2/5
  39. 389.Which of the following is NOT a characteristic of an insurance contract?
    Difficulty 1/5
  40. 390.A health insurance policy is a conditional contract because:
    Difficulty 2/5
  41. 391.The primary distinction between a stock insurance company and a mutual insurance company is:
    Difficulty 2/5
  42. 392.A health insurance policy is considered a unilateral contract because:
    Difficulty 2/5
  43. 393.An actuary notes that expanding a disability insurance pool from 5,000 to 50,000 similar insureds improves …
    Difficulty 2/5
  44. 394.A fraternal benefit society is best described as:
    Difficulty 2/5
  45. 395.When an insurer transfers part of its risk to another insurer through reinsurance, the insurer transferring…
    Difficulty 2/5
  46. 396.When an insurer transfers part of its risk to another insurer through reinsurance, the insurer transferring…
    Difficulty 2/5
  47. 397.An insurance contract is conditional because the insurer's obligation to pay depends on:
    Difficulty 1/5
  48. 398.An insurer wants to share its customers' nonpublic personal information with an unaffiliated marketing firm…
    Difficulty 3/5
  49. 399.A key difference between a mutual insurance company and a stock insurance company is that:
    Difficulty 2/5
  50. 400.Insurance fraud affects the cost of insurance primarily because it:
    Difficulty 2/5