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






2. Policy owner has right to determine mode of premium payment but Insurer can charge admin. fee if not annual.






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






4. Written policy terms supersede oral statements made prior to policy issue.






5. Federal law which allows health coverage portability when changing jobs - so long as previous coverage was in effect 63+ days; allows some tax deductibility for LTC.






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






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






8. 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.






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






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






11. Federally-funded but state-run program for truly indigent individuals & families providing medical care at Federal clinic.






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






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






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






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






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






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. 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.






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






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






23. Identical to Incontestable Clause in Life policy.






24. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






25. Permanent - not recoverable (spinal cord injury); Temporary - recoverable (temp. illness/injury - broken limb).






26. War; elective cosmetic surgery; routine dental; work. comp.-covered claims; self-inflicted (intentional); gov't. facility treatment; LTC; private nursing.






27. Death benefit is NOT taxable. Cash value grows tax-deferred but cost basis (base premium) is not taxable - only interest is.






28. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.






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






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






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






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






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






34. Period of time following any children's survivor benefit & before benefits are provided to employee's widow/widower.






35. Basic Medical; Major Medical; Comprehensive Major Medical






36. Underwriting - determines insurability; Marketing/Sales - determines products; Actuarial - determines rates; Claims - investigates/pays claims.






37. Provides professional services - rehabilitation - training/re-training & related costs to assist Insured in returning to work.






38. Same as WL but cash value increases @ current interest rates (not set); premium can start low or high & may change.






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






40. Same as WL but can be "paid-up" early by paying larger premium for shorter payment period (i.e. 10 Pay Life - 20 Pay Life).






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






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






43. Dependent children are covered until 19 or 23 (full-time student only) or until self-sufficient (if handicapped).






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






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






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






47. Agreement - Offer & acceptance; Consideration - application + premium; Legal capacity - licensed &/or competent; Legal purpose - public good.






48. Fraternal - non-profit - members only; Reciprocal - unincorp'd org. - members insure each other; Lloyd's Assoc. - groups sharing risks; Surplus lines - special market risks.






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






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