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. Intentional deception; grounds for rescission.






2. Upon death - death benefit is paid + the aggregate of premiums paid to date; add-on to Term policy ONLY.






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






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






5. Must be delivered in person or by certified - registered or 1st-class mail w/ signature - unless waived by Insurance Commissioner.






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






7. Insurer has right to rescind policy & return premium if material misrepresentation in application is found w/in 1st 2 yrs.






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






9. 1: Immediate benefits rec'd w/in 30 days but premium must be paid by lump sum; 2: Deferred - usually until retirement.






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






11. If Insured changes to: more hazardous job - benefits reduced; less hazardous job - premiums reduce.






12. Coverage for catastrophic loss w/ high limits - front end deductible; co-insurance (80/20%); blanket coverage; stop loss max.






13. Federal law which prohibits companies w/ 15+ employees from decreasing coverage benefits for women affected by pregnancy or childbirth.






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






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






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






17. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.






18. Grows @ fixed interest rate for set term but cash value may adjust to prevailing rate (+ or -) if fully surrendered before term ends; % w/drawal ok.






19. Provides for continued operation of business if partner becomes disabled - by allowing other partner(s) to buy disabled partner's interest in business.






20. Although death benefit is tax-free - it is included in gross estate value so federal &/or state taxes may apply to a portion in excess of fixed federal limit.






21. 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.






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






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






24. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)






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






26. Policy owner has 90 days from date of loss to submit proof of loss to Insurer; valid claim must be paid immediately upon receipt.






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






28. Waives premium on Life policy for minor child until age 21 in event premium payor dies or becomes disabled.

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






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






31. 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.






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






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






34. Life license + NASD (FINRA) Series 6 or 7.






35. Insurer has right to adjust (+ or -) death benefit if age or sex is misstated but normally doesn't void policy.






36. Allows for use of HMO/PPO or other private carrier to provide expanded benefits @ additional premium & if enrolled in BOTH Parts A & B.






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






38. Federal law allows employees/their dependents to continue group benefits w/in 60 days after termination (if employer has 20+ employees); Insured pays premium @ 102% of group cost.






39. Level - fixed death benefit - premium fixed until renewal; Decreasing - death benefit decreases over term - premium fixed until renewal; Increasing - death benefit increases over term - premium fixed until renewal.






40. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






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






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






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






44. Tendency of poorer risks to seek insurance.






45. Both Contributory & Non-contributory Group policies are deductible to employer (not employee) but benefits are taxable. Individual policy premium is NOT deductible but benefit is received tax-free.






46. Allows policy owner to w/draw set % of death benefit upon verification of terminal illness w/ expectancy 12-24 mths.; generally tax-free.






47. Receipt whereby coverage incepts conditionally upon submission of full consideration and that all underwriting reqs. are met.






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






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






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