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






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






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






4. Although death benefit is tax-free - it is included in gross estate value so federal &/or state taxes may apply to a portion in excess of fixed federal limit.






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






6. Death benefits & premium automatically increase annually based on inflationary index (i.e. Consumer Price Index).






7. Summary of coverage including premium & mode of payment - death benefit - beneficiary(ies) - exclusions - & promise to pay.






8. Part of IRS Section 125 cafeteria plan - which allows pre-tax payroll deductions for qualified medical expenses or child/dependent care.






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






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






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






12. Non-qualified Annuity - Non-deductible contributions & tax-deferred growth. At pay-out - tax-free principal but taxable growth.






13. 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.






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






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






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






17. Intentional deception; grounds for rescission.






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






19. Upon death - death benefit is paid + the aggregate of premiums paid to date; add-on to Term policy ONLY.






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






21. No coverage for injuries while: 1: @ voluntary social event; 2: self-inflicted (intentional); 3: under alcohol/drug influence; 4: committing criminal act; 5: aggressor in workplace fight; 6: participating in athletic event (non-pro. athletes) 7: par






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






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






24. If Insured & primary beneficiary die due to same act (w/in 14 days) - primary assumed 1st to die & contingent beneficiary paid death benefit.






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






26. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






27. Prepaid med. benefits for "subscribers" @ approved facilities; many non-profit; Blue Cross - Hospital stays; Blue Shield - M.D. costs.






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






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






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






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






32. Palliative - treatment to manage pain; Curative - treatment to cure illness/condition.






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






34. Business continuation funding plan whereby each partner agrees to buy Life policies on each other - but not themselves.






35. The state in which the contract is accepted or delivered is the state that possesses regulatory jurisdiction over Group plan.






36. Prepaid med. benefits for members w/ approved primary care M.D. (independent); low co-pay; non-PPO M.D. can be used at higher cost.






37. Policy owner has 90 days from date of loss to submit proof of loss to Insurer; valid claim must be paid immediately upon receipt.






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






39. Prohibited w/ regard to testing for people of same class; test results must remain confidential; coverage may be declined (once discovered).






40. 1: Cash (tax-free); 2: Apply to future premiums; 3: Retained by Insurer @ interest; 4: Buy Paid-up WL policy add-ons; 5: Pay-up existing policy; 6: Buy 1-yr. Term policy.






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






42. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






43. Waives premium on Life policy for minor child until age 21 in event premium payor dies or becomes disabled.

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44. 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.






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






46. 4: Funds retained by Insurer until w/drawn - interest ONLY paid monthly (taxable); 5: Paid-up immediate annuity.






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






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






49. Representation - oral or written statement made to best of knowledge or belief; Warranty - statement guaranteed/presumed/understood to be true.






50. 1: Fixed - guaranteed fixed monthly income & fixed interest rate; 2: Variable - unguaranteed; monthly income varies based on stocks/bond returns.






Can you answer 50 questions in 15 minutes?



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