Set 1 Assignment 10 - Code & Ethics Final Exam

Created by cgoitia 

Upgrade to
remove ads

11 terms

The materiality of a representation or concealment:

A) Is not relevant to the underwriter
B) Depends on if it would have affected the other party's evaluation of the disadvantages of entering into the contract
C) Can only be determined by going to court
D) Representations and concealments are always deemed to be material

B) Depends on if it would have affected the other party's evaluation of the disadvantage of entering into the contract

The license of an agent or solicitor who knowingly violates the law against twisting may be suspended by the Commissioner for a period of up to:

A) One year
B) Two years
C) Three years
D) Five Years

C) Three years

The Department of Insurance has jurisdiction over all entities selling health insurance:

A) True
B) False

B) False

Medical Health insurance coverage applies as well as:

A) Workers Compensation
B) Auto Medical
C) Social Security
D) Unemployment

B) Auto Medical

The California Insurance Code applies to all medical expense plans sold by California:

A) True
B) False

A) True

Part One of a Workers Compensation Policy provides:

A) Liability coverage for the employer
B) Coverage for workers in other states
C) State coverage required by law
D) None of the above

C) Sate coverage required by law

An insurer cancels a policy after 6 months and returns exactly 50% of the unearned premium. This type of cancellation is:

A) Pro-rata
B) Flat
C) Short rate
D) Half rate

A) Pro-rata

The Information and Privacy Protection Act prevents limitations on the release of information collected in connection with insurance transactions.

A) True
B) False

B) False

Concerning concealment on an insurance application:

A) If a policy is in force at the time of the loss, regardless of the concealment, the loss must be paid
B) Only when the concealed facts are material could the insurer cancel or rescind the policy
C) Unintentional concealment is acceptable
D) If the concealment is proven or admitted, the premium paid (minus the penalties and interest) must be returned to the insured

B) Only when the concealed facts are material could the insurer cancel or rescind the policy

If an act or practice appears to be unfair or deceptive, but there is no specific California citation prohibiting it, the Commissioner:

A) Cannot take action without a specific Code citation
B) May call for a hearing into the matter
C) May immediately issue a cease and desist order
D) Must seek arbitration through the Attorney General's office

B) May call for a hearing into the matter

Which of the following is most correct about a stop loss found in a medical expense insurance policy?

A) It limits the most the insurer has to pay over the policy period
B) It limits the most the insured has to pay on a claim
C) It limits the most the insured has to pay for the deductible
D) It limits the most the insurer has to pay on a claim

B) It limits the most the insured has to pay on a claim

Please allow access to your computer’s microphone to use Voice Recording.

Having trouble? Click here for help.

We can’t access your microphone!

Click the icon above to update your browser permissions above and try again

Example:

Reload the page to try again!

Reload

Press Cmd-0 to reset your zoom

Press Ctrl-0 to reset your zoom

It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.

Please upgrade Flash or install Chrome
to use Voice Recording.

For more help, see our troubleshooting page.

Your microphone is muted

For help fixing this issue, see this FAQ.

NEW! Voice Recording

Click the mic to start.

Create Set