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CA Life Agent Exam

Subject : certifications
Instructions:
  • Answer 50 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Group plan initially self-funded by employer (like SIR); after which - group plan Insurer covers (up to policy limit); requires TPA.






2. Intentional deception; grounds for rescission.






3. If total premiums paid w/in 1st 7 yrs. exceed net level premium that should have been paid - policy is an MEC.






4. No deductible coverage for: daily room/board; ancillary costs; surgeon &/or physician expense (for added premium).






5. 'The inability to perform your OWN normal occupation or daily duties'.






6. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






7. Policy owner has right to determine mode of premium payment but Insurer can charge admin. fee if not annual.






8. No-charge annuity w/drawals allowed up to 10% of total - THEN penalized on sliding scale based on # policy yrs.; conditionally waived.






9. Same as WL but death benefit increases annually - linked to Consumer Price Index; premium increases annually OR is set high from start.






10. Federal program financed by payroll taxes provided equally by both employer & employee OR entirely by individual (if self-employed). Provides benefits for: Medicare @ age 65+; retirement; $255 lump sum death benefit; (limited) disability; survivors;






11. Authorized (admitted) - can conduct business in state; Unauthorized (non-admitted) - cannot conduct business in state (w/ one exception).






12. Responsible adult trustee designated to manage death benefits for minor child beneficiary until adulthood.






13. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.






14. Policy provisions must conform to state regulations where policy is sold.






15. A&H - A&S - Sickness only; Medical; Disability; Accident only; Travel accident; LTC; Medicare supplement; AD&D; Dental/Vision/Prescription; Limited.






16. Privately-sold policies to provide benefits not covered by Medicare; divided into 12 plans listed alphabetically A - L; 30-day free look; guaranteed renewable.






17. Combination of Basic Medical & Major Medical in one policy; Basic pays 1st - then Major Medical w/ corridor deductible.






18. Actual/Expressed - written powers; Implied - unwritten but customary practices; Apparent - perceived powers.






19. Beneficiary has right to leave death benefits / Insurer to protect $ from creditors; interest (taxable) paid on retained funds.






20. WL policy covering 2 or more Insureds but payable upon death of FIRST Insured - after which policy ends.






21. Type of partial disability rider - which pays fluctuating % of lost income w/out time limit.






22. Policy covering minor child; premium fixed but death benefit increases by 5 times @ age 18 or 21.






23. Annuity distributions prior to age 59 1/2 incur a 10% IRS penalty EXCEPT for death - disability - immediate annuity - or rollover.






24. Process which prevents claim denial as a result of false statement or promise (made by Insurer) - which was relied upon by Insured.






25. Provides disability income during surgery recovery from life-threatening condition (& sometimes cosmetic surgery).






26. Compensates business for loss due to death or disability of key employee; premiums not deductible but benefits tax-free.






27. Mandatory 100% employer-funded coverage for injuries/illnesses occurring "on" job; full-time employees only; exclusive remedy. Provides: 1: unlimited medical benefit; 2: survivor income replacement & funeral ($5 -000 max.); 3: disability benefit @ 66

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28. Coverage remains in effect for 31 days past premium due date; benefits paid during grace period would be deducted from sum.






29. Process whereby a reinsurer reinsures w/ another reinsurer.






30. Compensates business for loss due to disability of key employee; premiums not deductible but benefits tax-free.






31. Permanent disability due to total loss of sight - hearing - speech or use of 2 + limbs; benefits paid even while continuing to work.






32. Price of insurance per exposure unit.






33. Provides benefit during Social Security "black-out" period - up to 1 yr.






34. Provides for continued operation of business if partner dies - by allowing surviving partner(s) to buy deceased partner's interest in business.






35. Period of time following any children's survivor benefit & before benefits are provided to employee's widow/widower.






36. Basic Medical; Major Medical; Comprehensive Major Medical






37. 1: mortality probability charge; 2: Insurer's investment return; 3: expenses (admin costs - commissions). 1 - 2 = net; 1 - 2 + 3 = gross.






38. Monthly; Quarterly; Semi-annually; Annually (cheapest due to less admin cost).






39. Specialized policy covering diagnostic & preventative dental care; often no deductible; co-insurance; expensive; may be included w/ medical plan.






40. Conditional - coverage is conditional; Personal - parties are people; Good faith - honesty/integrity; Fiduciary - req's financial trust.






41. 'The inability to perform ANY reasonable occupation based on education - training or experience'.






42. Same as WL but can be "paid-up" early by paying larger premium for shorter payment period (i.e. 10 Pay Life - 20 Pay Life).






43. Allows Insured to increase benefit w/out medical exam (subject to age max.) w/ additional premium rate determined @ attained age; must prove income increase.






44. Underwriting - determines insurability; Marketing/Sales - determines products; Actuarial - determines rates; Claims - investigates/pays claims.






45. Peril is the CAUSE of loss. Hazard is a condition that increases LIKELIHOOD of loss.






46. 1: Straight aka Pure Life - lifetime income but no survivorship refund; 2: Life w/ Period Certain - lifetime income w/ death benefit of monthly annuity for remaining predetermined term. 3: Annuity Certain - monthly income paid for predetermined term






47. The state in which the contract is accepted or delivered is the state that possesses regulatory jurisdiction over Group plan.






48. Death benefit determined by Insured's projected lost earnings potential.






49. Domestic - within home state; Foreign - outside home state; Alien - outside home country.






50. Same as WL but cash value increases @ current interest rates (not set); premium can start low or high & may change.






Can you answer 50 questions in 15 minutes?



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