Insurance Code

Question 0

When an insurer endorses, rejects, declines, cancels, or surrenders the policy, unearned premium must be return to the insured with how long?

Answer 0

25 days

Question 1

A life agent must maintain records regarding insurance transactions for how long?

Answer 1

Five years

Question 2

Concealment entitles the injured party to rescind the contract under which conditions?

Answer 2

When the concealed facts are material whether intentional or unintentional.

Question 3

Neglect to communicate that which a person knows and ought to communicate is:

Answer 3

Concealment

Question 4

An implied warranty is:

Answer 4

Included in the policy but not specifically stated in it

Question 5

If an insurer is approved to transact insurance in the state of California, it is considered to be:

Answer 5

An admitted insurer

Question 6

Under normal circumstances, an agent may write insurance business for:

Answer 6

Admitted insurers

Question 7

An exclusive agent may work for several insurance companies as long as those companies are admitted insurers. True or false?

Answer 7

False

Question 8

A natural person employed by an agent/broker to aid in transacting insurance other than life and health insurance is an:

Answer 8

Insurance agent

Question 9

Describe an insurance agent:

Answer 9

1. Appointed by an insurer
2. Transact other than life and health insurance.
3. Receive commissions
4. Transacts on behalf of the insurer

Question 10

Transacting insurance includes:

Answer 10

1. Solicitation
2. Negotiation
3. Execution of a contract of insurance

Question 11

Which of the following names would the insurance commissioner NOT disapprove? 
A. bona fide natural name
B. true corporate name
C. True name
D. Fictitious name

Answer 11

Bona fide natural name

Question 12

What is true about insurance records kept by an agent or broker?

Answer 12

The commissioner may inspect any record at any time.

Question 13

The commissioner may deny a license if the applicant has had a previous application denied or has previous license suspended or revoked for cause within how many years before filing of the application?

Answer 13

Five years

Question 14

The commissioner may deny a license without a hearing, if the applicant has been convicted of a misdemeanor denounced by the insurance code.

Answer 14

True

Question 15

A licensee misrepresents the Financial condition of an insurer. This is an example of:

Answer 15

Twisting

Question 16

If a licensee violates any provision relating to twisting, concealment, or misrepresentation, he may be imprison for up to how many months?

Answer 16

12

Question 17

A person who makes a fraudulent claim or assist in making a fraudulent claim is guilty of a criminal act and may be imprisoned for how many years?

Answer 17

Two, three, or five years

Question 18

An agent may advertise that his insurance company is a member of a guaranteed association. True or false?

Answer 18

False

Question 19

What is not an unfair trade practice?

Answer 19

Informing clients of the statue of limitations.

Question 20

Insurance licensees must put their license number on which of the following?
A. Business cards
B. written quotations for insurance products.
C. Printed advertisements

Answer 20

all the above

Question 21

A surplus lines broker places insurance with whom?

Answer 21

non-admitted insurers

Question 22

It is a misdemeanor to transact for or advertise a non-admitted insurer unless licensed as what?

Answer 22

A surplus lines broker