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. Receipt whereby coverage incepts ONLY after underwriting approval.






2. Same as WL but death benefit increases annually - linked to Consumer Price Index; premium increases annually OR is set high from start.






3. Multiple small employers w/ common affiliation (trade assoc. OR Chamber of Commerce) band together to purchase group plan.






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






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






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






7. Responsible adult trustee designated to manage death benefits for minor child beneficiary until adulthood.






8. 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.






9. 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.






10. Disability income is based on "earned income" (salary - bonus - commission) - not unearned income (interest - investment - rents).






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






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






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






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






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






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






17. 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.






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






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






20. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






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






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






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






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






25. Treating or mitigating loss exposures through 1: avoidance; 2: retention (deductibles); 3: sharing; 4: reduction; or 5: transfer.






26. 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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27. Identical to Incontestable Clause in Life policy.






28. Unintentional - up to $1 -000 + legal $; Intentional - $1 -000-5 -000 + legal $; If harmful - misdemeanor + up to 1 yr. prison + up to $10 -000.






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






30. Intentional deception; grounds for rescission.






31. Provides disability income during surgery recovery from life-threatening condition (& sometimes cosmetic surgery).






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






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. 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.






35. Written contract to transfer risk of premature death from one party to another; pays stated sum upon death; creates instant estate.






36. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






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






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






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






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






41. Permanent disability due to total loss of sight - hearing - speech or use of 2 + limbs; benefits paid even while continuing to work.






42. Provides supplemental coverage for physician/surgeon fees if enrolled (during enrollment period ONLY) & pay monthly premium w/ deductible and co-insurance.






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






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






45. Annuity distributions prior to age 59 1/2 incur a 10% IRS penalty EXCEPT for death - disability - immediate annuity - or rollover.






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






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






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






49. 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;






50. 'The inability to perform ANY gainful occupation'.