California Life, Accident, and Health Insurance Practice Exam

Question 1

Which of the following scenarios would most likely be considered uninsurable due to a lack of insurable interest?

Accepted Answer

Purchasing a life insurance policy on a complete stranger with no financial relationship

Question 2

A homeowner whose house burns down collects the exact replacement cost from the insurer, with no profit. This reflects which insurance principle?

Accepted Answer

Principle of indemnity

Question 3

According to the California Insurance Code, a representation in an insurance contract qualifies as:

Accepted Answer

An implied warranty

Question 4

Which of the following is NOT a required element of a legal insurance contract?

Accepted Answer

Equal consideration

Question 5

Which of the following would be classified as a hazard rather than a peril?

Accepted Answer

Defective wiring in a building

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