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






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






3. 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.






4. Federal program financed by payroll taxes provided equally by both employer & employee OR entirely by individual (if self-employed). Provides benefits for: Medicare @ age 65+; retirement; $255 lump sum death benefit; (limited) disability; survivors;






5. Reappearance of disability w/in 6 mth. period after "recovery" from same disability is considered recurrence - not new disability.






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






8. Qualified Annuity - Tax-deductible contributions & tax-deferred growth but fully taxable w/drawals.






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






10. Upon notice - Insurer must provide Claim Form (Proof of Loss Form) to Insured w/in 15 days.






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






12. Pure risk involves chance of loss ONLY (accident or misfortune). Speculative risk involves chance of loss OR gain (gambling - stock investment).






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






14. A lapsed policy may be reinstated if not longer than 3-5 yrs. - & proof of insurability re-established - & back premiums + interest paid.






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






16. Funding mechanism whereby employer & employee share cost of premium. Upon death - benefit is shared between employer & beneficiary.






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






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






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






20. Excludes coverage for suicide during 1st 2 yrs. ONLY but - if it does - all premiums must be returned to beneficiary.






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






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






23. 1: Fixed - guaranteed fixed monthly income & fixed interest rate; 2: Variable - unguaranteed; monthly income varies based on stocks/bond returns.






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






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






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






27. Provides medical & personal services for people needing extended assistance w/ Activities of Daily Living (ADL). Other benefits include: assisted living care; respite care; hospice care; adult day care.






28. Part of IRS Section 125 cafeteria plan - which allows pre-tax payroll deductions for qualified medical expenses or child/dependent care.






29. 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.






30. Req. by CA statute & may provide workers coverage for action-over claims.






31. Employer w/ 25 or less employees must offer all eligible employees @ least 2 medical plan options where pre-existing conditions can't be excluded more than 1 yr.






32. Receipt whereby coverage incepts ONLY after underwriting approval.






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






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






35. No-cost provision that authorizes Insurer to borrow from cash value to pay unpaid premiums after grace period; must ask for @ app. time.






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






37. Same as WL but w/ adjustable death benefit (& corresponding premium) & over-fund option but w/ annually renewable term (ART).






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






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






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






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






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






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






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






45. No coverage for injuries while: 1: @ voluntary social event; 2: self-inflicted (intentional); 3: under alcohol/drug influence; 4: committing criminal act; 5: aggressor in workplace fight; 6: participating in athletic event (non-pro. athletes) 7: par






46. 1: Immediate benefits rec'd w/in 30 days but premium must be paid by lump sum; 2: Deferred - usually until retirement.






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






48. Preferred or Preferred Smoker; Standard or Standard Smoker; Substandard; Denied.






49. Written contract that provides INCOME @ high interest rate for fixed period OR for annuitant's lifetime w/ possible death benefit.






50. Policy must be delivered w/ original (or copy of same) application attached.