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






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






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






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






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






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






7. 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.






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






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






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






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






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






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






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






15. Upon death - death benefit is paid + the aggregate of cash value accumulated to date; add-on to WL policy ONLY.






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






17. Experience - rates impacted by actual prior claim experience of actual group; Community - identical rates used for entire community - regardless of experience.






18. 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.






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






20. 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).






21. Same as WL but policy owner can adjust death benefit w/ corresponding premium adjustments; mostly obsolete.






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






23. Compensates business for loss due to disability of key employee; premiums not deductible but benefits tax-free.






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






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






26. Provides accidental death benefit @ full $ of "principal sum". Dismemberment is paid only @ 50% principal sum ("capital sum").






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






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






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






30. Periodic return of premium to policy owners from Mutual (Par) Companies; not guaranteed & not taxable as income; may be used in 6 ways.






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






32. Allows policy owner to w/draw set % of death benefit upon verification of terminal illness w/ expectancy 12-24 mths.; generally tax-free.






33. No-charge annuity w/drawals allowed up to 10% of total - THEN penalized on sliding scale based on # policy yrs.; conditionally waived.






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






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






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






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






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






39. 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.






40. 1: mortality probability charge; 2: Insurer's investment return; 3: expenses (admin costs - commissions). 1 - 2 = net; 1 - 2 + 3 = gross.






41. Extreme form of Limited Pay Whole Life whereby entire premium is paid in a single payment.






42. Intentional deception; grounds for rescission.






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






44. Basic Medical; Major Medical; Comprehensive Major Medical






45. Coverage for catastrophic loss w/ high limits - front end deductible; co-insurance (80/20%); blanket coverage; stop loss max.






46. WL policy covering 2 or more Insureds but ONLY payable upon death of LAST Insured - generally low premium but high death benefit.






47. Temp. coverage for set duration w/ death benefit ONLY (no cash value) - offers largest $ for lowest premium; renewable; convertible.






48. Benefits automatically increase annually based on inflationary index (i.e. Consumer Price Index) OR flat rate (5% max.).






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






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







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