Test your basic knowledge |

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. Savings account for medical expenses; Tax-deductible contributions; tax-deferred growth; tax-free for qualified use; taxable for non-qualified use.






2. Prevents overinsuring in order to profit from disability by coordinating benefits between Insurers.






3. Prepaid med. benefits for members w/ approved primary care M.D. (independent); low co-pay; non-PPO M.D. can be used at higher cost.






4. Potential circumstance that could cause a loss; measured in dollars.






5. Receipt whereby coverage incepts ONLY after underwriting approval.






6. Disability policy rider covering "the inability to perform some - but not all of your duties"; pays max. 50% of disability benefit for up to 6 mths.






7. Grows @ fixed min. interest rate but w/ possible higher rate tied to equity index (i.e S&P Equity Index) appreciation; gains shared w/ Insurer.






8. Hybrid of HMO & PPO w/ greater flexibility on choosing specialists outside network w/ benefits still provided but @ higher co-pay.






9. Waives premium upon disability of Insured until return to work; disability must persist for 90 days or longer; 1st 90 day premiums refunded after 90 days.






10. Earned premium is $ paid for coverage to date. Unearned premium is $ paid & returnable due to coverage not provided.






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






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






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






14. 1: mortality probability charge; 2: Insurer's investment return; 3: expenses (admin costs - commissions). 1 - 2 = net; 1 - 2 + 3 = gross.






15. Provides coverage for specific disease(s) - such as cancer or leukemia.






16. Federally-funded but state-run program for truly indigent individuals & families providing medical care at Federal clinic.






17. Time period preceding each disability during which benefits are not paid; longer elimination periods = cheaper premium.






18. Covers disabilities occurring ONLY "off" job; benefits do not overlap work. comp. (i.e. Group plan).






19. Time extension of benefits based on "qualifying" event. 18 mth. extension if laid off or fired; 36 mth. extension if death - divorce or child leaves home.






20. Fraternal - non-profit - members only; Reciprocal - unincorp'd org. - members insure each other; Lloyd's Assoc. - groups sharing risks; Surplus lines - special market risks.






21. Benefits automatically increase annually based on inflationary index (i.e. Consumer Price Index) OR flat rate (5% max.).






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






23. Insurance purchased by other Insurer(s) to spread or diversify risk; promotes industry stability.






24. Prepaid med. benefits for members ONLY w/ approved primary care M.D. (HMO employee); focus on preventative care; low co-pay.






25. Agreement - Offer & acceptance; Consideration - application + premium; Legal capacity - licensed &/or competent; Legal purpose - public good.






26. Unintentional - up to $1 -000 + legal $; Intentional - $1 -000-5 -000 + legal $; If harmful - misdemeanor + up to 1 yr. prison + up to $10 -000.






27. Private sector (Commercial) - provides LA&H - P&C - & LTC; Public sector (Gov't) - provides flood - work. comp. - Medicare/Medicaid - Group Life (SGLI/FEGLI).






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






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






30. Intentional OR unintentional failure to disclose material underwriting facts that should have been disclosed; grounds for policy rescission.






31. Agents - represent Insurer; Brokers - represent themselves & Insured; Solicitors - represent one agent to solicit leads.






32. Temp. coverage for set duration w/ death benefit ONLY (no cash value) - offers largest $ for lowest premium; renewable; convertible.






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






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






35. PURELY employer-funded account to reimburse employees for qualified medical expenses not covered by group health plan.






36. Premiums determined by target cash values or death benefit; partial cash value w/drawals allowed; transparent policy w/ unbundled premium.






37. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)






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






39. War/Military; Intentional self-inflicted; Aviation (non-commercial); Foreign country; Loss of professional license; Illegal activity; Mental disorders (after 1-2 yrs.).






40. Revocable - changeable anytime w/ Change of Beneficiary Form; Irrevocable - not changeable w/out beneficiary permission.






41. 1: parties to contract; 2: insured party or life; 3: insurable interest - if 3rd party; 4: risks insured against; 5: policy period (term); 6: premium & mode.






42. To "make whole again" w/out benefit or detriment; neither monetary profit nor loss.






43. Pays death benefit until age 100 or death; builds equity (cash value); may be transferred or sold; generally level premium.






44. Identical to Incontestable Clause in Life policy.






45. Palliative - treatment to manage pain; Curative - treatment to cure illness/condition.






46. Guaranteed min. interest rate on cash value buildup but possible higher rate if short-term investment returns higher than expected.






47. Same as Term Life but provides living benefit (endowment) to policy owner if Insured survives entire term.






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






49. 1: Immediate benefits rec'd w/in 30 days but premium must be paid by lump sum; 2: Deferred - usually until retirement.






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