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. 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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2. Allows Insured to increase death benefit w/out medical exam (subject to age max.) w/ additional premium rate determined @ attained age.






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






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






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






6. 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.






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






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






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






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






11. Same as WL but policy owner can adjust death benefit w/ corresponding premium adjustments; mostly obsolete.






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






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






14. Prohibited w/ regard to testing for people of same class; test results must remain confidential; coverage may be declined (once discovered).






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






16. 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.






17. Info already known; Info that should have been known; Waived info; Irrelevant info.






18. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)






19. Excludes coverage for specific injury/illness either temporarily or permanently in order to eliminate pre-existing condition.






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






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






22. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






23. 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






24. Part A - Inpatient hospital deductibles vary on # of days; limited reserve days; finite benefit; 1st 3 pints blood; Part B - 20% co-payment.






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






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






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






28. An irrevocable IRS classification of a policy (determined by the 7 Pay Test) whereby tax advantages are lost for all distributions ONLY.






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






30. Taxable income (unlike individual plans); can be either short-term - 13-52 wks. max. or long-term - longer than 52 wks.






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






32. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






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






34. Experience - rates impacted by actual prior claim experience of actual group; Community - identical rates used for entire community - regardless of experience.






35. Business continuation funding plan whereby each partner agrees to buy Life policies on each other - but not themselves.






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






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






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






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






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






41. IRS allows tax-free transfer of cash values between 2 LIKE policies (i.e. Life to Life - Annuity to Annuity - or Life to Annuity).






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






43. Same as WL but w/ Level Term rider; upon death - pays monthly income for FULL term AFTER which pays full death benefit.






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






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






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






47. Term Life policy w/ decreasing death benefit; usually used to secure credit (loan) w/ lender as beneficiary & borrower as Insured.






48. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






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






50. Commercial (private) companies; HMOs; PPOs; Blue Cross/Blue Shield; Employer-sponsored plans; Government.