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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. 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.






2. An unintentional mistake committed by an insurance representative; may be covered by E&O insurance.






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






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






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






6. Same as WL but premium low for 1st 3-5 yrs. - THEN has one-time premium increase.






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






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






9. Tendency of poorer risks to seek insurance.






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






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






12. 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.






13. Type of partial disability rider - which pays fluctuating % of lost income w/out time limit.






14. Plan A is the CORE benefit & is least expensive; All other plans include Plan A + additional benefits. Plans F & J are high deductible. K & L are both deductible & co-pay plans.






15. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






16. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)






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






18. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






19. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






20. PURELY employer-funded account to reimburse employees for qualified medical expenses not covered by group health plan.






21. 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.






22. Potential circumstance that could cause a loss; measured in dollars.






23. Same as Term Life but provides living benefit (endowment) to policy owner if Insured survives entire term.






24. Primary - if 2 or more - equally shared; Contingent (Secondary) - only if primary dead; Tertiary - only if both primary & secondary dead. If none listed - goes to estate.






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






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. Monthly; Quarterly; Semi-annually; Annually (cheapest due to less admin cost).






28. Federally-sponsored health care for individuals 65+ &/or w/ certain disabilities; may run concurrent w/ group plan but group plan would act primary - THEN Medicare.






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






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






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






32. Covers disabilities occurring ONLY "off" job; benefits do not overlap work. comp. (i.e. Group plan).






33. Federal law to protect Federal employees' (& their beneficiaries') pension - group insurance - & welfare benefits.






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






35. Agents - represent Insurer; Brokers - represent themselves & Insured; Solicitors - represent one agent to solicit leads.






36. Provides usual & customary business expenses (rent - utilities - salaries - mortgage) if owner becomes disabled; premiums deductible - benefits taxable.






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






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






39. Two death benefit options - Option A: death benefit ONLY; Option B: death benefit + cash value; death benefit NOT guaranteed.






40. 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.






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






42. 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.






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






44. War - 2 types; Suicide (1st 2 yrs.); Aviation (non-commercial); Hazardous hobbies; Criminal acts; Alcohol/Drug influenced.






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






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






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






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






49. Covers disabilities occurring both "on" AND "off" job; "on" job benefits paid in addition to work. comp. - if applicable (i.e. individual plan).






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







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