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






2. 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.






3. Same as WL but premium low for set # yrs. - THEN premiums vary (+ or -) based on Insurer's investment returns - w/ Gmax.






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






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






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






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






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






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






10. Price of insurance per exposure unit.






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






12. Intentional deception; grounds for rescission.






13. Provides 24 hr. health coverage both "on" & "off" job - but may cause coverage duplication & coordination challenges.






14. 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.






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






16. 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.






17. 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.






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






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






20. Allows Term policy conversion to Permanent policy w/out medical exam; must be identical or lower death benefit; based on either attained OR original age.






21. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






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






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






24. Provides for continued operation of business if partner dies - by allowing surviving partner(s) to buy deceased partner's interest in business.






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






26. Same as Universal Life but cash value put in investment vehicles chosen by policy owner (stocks - bonds - munis.); cash value NOT guaranteed.






27. Basic Medical; Major Medical; Comprehensive Major Medical






28. Premiums determined by target cash values or death benefit; partial cash value w/drawals allowed; transparent policy w/ unbundled premium.






29. Peril is the CAUSE of loss. Hazard is a condition that increases LIKELIHOOD of loss.






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






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






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






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






34. After 2-3 yrs. - Whole Life policy equity builds tax-deferred @ fixed interest rate until it equals death benefit; borrowable but taxable.






35. 1: mortality probability charge; 2: Insurer's investment return; 3: expenses (admin costs - commissions). 1 - 2 = net; 1 - 2 + 3 = gross.






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






37. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.






38. 1: Req. - unless self-employed; 2: 7-day wait for disability benefits; 3: Premium based on ex-mod; 4: Rates approved by CDI; 5: to sell - must satisfy education reqs.






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






40. Federal law which prohibits companies w/ 15+ employees from decreasing coverage benefits for women affected by pregnancy or childbirth.






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






42. Guaranteed min. interest rate on cash value buildup but possible higher rate if short-term investment returns higher than expected.






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






44. 1: Fixed - guaranteed fixed monthly income & fixed interest rate; 2: Variable - unguaranteed; monthly income varies based on stocks/bond returns.






45. Revocable - changeable anytime w/ Change of Beneficiary Form; Irrevocable - not changeable w/out beneficiary permission.






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






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






48. Provides % of monthly income benefit if Insured becomes disabled due to illness or accident.






49. Partially state-funded benefits for low-income people whereby cost of care is shared between state & recipient - based on income.






50. 1: parties to contract; 2: insured party or life; 3: insurable interest - if 3rd party; 4: risks insured against; 5: policy period (term); 6: premium & mode.







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