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. Prepaid med. benefits for "subscribers" @ approved facilities; many non-profit; Blue Cross - Hospital stays; Blue Shield - M.D. costs.






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






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






4. Non-qualified Annuity - Non-deductible contributions & tax-deferred growth. At pay-out - tax-free principal but taxable growth.






5. Allows for Term policy renewal @ higher premium w/out medical exam; guarantees insurability; based on actual/attained age.






6. Voiding an insurance contract based on fraud - concealment or material misrepresentation; premiums returned; policy treated as never existing.






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






8. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






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






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






11. Extreme form of Limited Pay Whole Life whereby entire premium is paid in a single payment.






12. Dependent children are covered until 19 or 23 (full-time student only) or until self-sufficient (if handicapped).






13. Federal law to protect Federal employees' (& their beneficiaries') pension - group insurance - & welfare benefits.






14. 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.






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






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






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






18. Unilateral - Insurer provides contract; Adhesion - parties must adhere to terms; Aleatory - benefits may not inure equally.






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






20. An attempt to contain costs by employing various strategies - including wellness programs - preventative testing - outpatient & alternative procedures.






21. War - 2 types; Suicide (1st 2 yrs.); Aviation (non-commercial); Hazardous hobbies; Criminal acts; Alcohol/Drug influenced.






22. War; elective cosmetic surgery; routine dental; work. comp.-covered claims; self-inflicted (intentional); gov't. facility treatment; LTC; private nursing.






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






24. 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.






25. If 2 or more family members are injured in the same accident - only payment of a single deductible is required.






26. 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.






27. Provides hospital insurance automatically @ age 65 (if FICA qualified) @ no fee but may have deductible & co-pay.






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






29. Govt. organization providing health care benefits for dependents of military personnel.






30. Any person - assoc. - org. - partnership - business trust - LLC - or corp. capable of making an insurance contract.






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






32. Summary of coverage including premium & mode of payment - death benefit - beneficiary(ies) - exclusions - & promise to pay.






33. Federal law which prohibits companies w/ 20+ employees from denying work & medical benefits to employees due to age.






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






35. Mathematical calculation based on overall FICA contributions used to determine retirement/disability/survivorship benefit.






36. 1: mortality probability charge; 2: Insurer's investment return; 3: expenses (admin costs - commissions). 1 - 2 = net; 1 - 2 + 3 = gross.






37. Provides 24 hr. health coverage both "on" & "off" job - but may cause coverage duplication & coordination challenges.






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






39. Written policy terms supersede oral statements made prior to policy issue.






40. Same as WL but w/ Decreasing Term rider; upon death - pays monthly income for REMAINING term AFTER which pays full death benefit.






41. Physical - slippery floor; Moral - dishonest acts; Morale - carelessness or recklessness.






42. Receipt whereby coverage incepts ONLY after underwriting approval.






43. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






44. Policy owner must notify Insurer of loss either in writing - in person or by phone w/in 20 days.






45. Two death benefit options - Option A: death benefit ONLY; Option B: death benefit + cash value; death benefit NOT guaranteed.






46. Covers entire family w/ WL for breadwinner & (convertible) Level Term for spouse & children (until certain age).






47. 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.






48. Financial interest in insured party that must exist @ time of application OR policy issuance. Requires consent (except minors).






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






50. Provides accidental death benefit @ full $ of "principal sum". Dismemberment is paid only @ 50% principal sum ("capital sum").