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






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






3. Refund of 50-80% of premium (minus claims paid) every 5-10 yrs. OR age 65; expensive!






4. Representation - oral or written statement made to best of knowledge or belief; Warranty - statement guaranteed/presumed/understood to be true.






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






6. 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






7. Policyholders - Mutual (participating) co. - may pay dividends; Stockholders - Stock (non-participating) co. - no dividends.






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






9. Provides increased death benefit if death occurs w/in 90 days & as result of accident; relatively INexpensive add-on.






10. 1: Fixed - guaranteed fixed monthly income & fixed interest rate; 2: Variable - unguaranteed; monthly income varies based on stocks/bond returns.






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






12. Provides % of monthly income benefit if Insured becomes disabled due to illness or accident.






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






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






15. Accumulation or "pay-in" - contributions & interest earned are tax-deferred; Annuity or "pay-out" - monthly annuity (taxable) paid.






16. Privately-provided or Medicare-provided (if no private carrier) prescription drug plans for qualified individuals but w/ premium - deductible & co-pay.






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






18. Provides professional services - rehabilitation - training/re-training & related costs to assist Insured in returning to work.






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






20. Application submitted w/out premium; no coverage until submission of full consideration & completed Statement of Continued Good Health.






21. 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.






22. Allows Term policy conversion to Permanent policy w/out medical exam; must be identical or lower death benefit; based on either attained OR original age.






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






24. Expands individual WL policy to include Term Life for dependents (spouse - children - etc.).






25. Same as WL but premium low for 1st 5 yrs. - THEN has annual premium increases for set # yrs. - THEN level premium.






26. Generally 10 days after policy delivery to cancel policy w/ full refund - except 30 days for seniors or for replacement policies.






27. Same as WL but cash value put in investment vehicles chosen by policy owner (stocks - bonds - munis.); cash value NOT guaranteed.






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






29. If Insured & primary beneficiary die due to same act (w/in 14 days) - primary assumed 1st to die & contingent beneficiary paid death benefit.






30. Basic Medical; Major Medical; Comprehensive Major Medical






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






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






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






34. 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.






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






36. Waives premium upon disability of Insured until return to work; disability must persist for 6 mths. or longer. Cash value & dividends not affected.






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






38. 1: Individual; 2: Joint - multiple annuitants paid until 1st dies; 3: Joint & Survivor - multiple annuitants paid until 1st dies THEN survivors paid but @ reduced $.






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






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






41. Insured can seek legal action against Insurer for denial of claim only after 60 days and up to 3 yrs. after providing proof of loss.






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






43. Same as Comprehensive Major Medical but w/ integrated deductible; much more expensive.






44. Group plan initially self-funded by employer (like SIR); after which - group plan Insurer covers (up to policy limit); requires TPA.






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






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






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






48. Fixed premium w/ guaranteed min. death benefit that may increase due to higher than expected investment returns.






49. Death benefit determined by Insured's financial goals & needs (minus assets).






50. Mathematical law stating the larger # of occurrences - the more predictable the losses; used to calculate premiums.