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






2. Receipt whereby coverage incepts ONLY after underwriting approval.






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






4. Mortality is the statistical possibility of death @ each age. Morbidity is the statistical possibility & extent of disability @ each age.






5. 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.






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






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






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






9. 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.






10. Permanent disability due to total loss of sight - hearing - speech or use of 2 + limbs; benefits paid even while continuing to work.






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






12. Provides increased death benefit if death occurs w/in 90 days & as result of accident; relatively INexpensive add-on.






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






14. Dividends are NOT taxable but interest is. Loan interest is NOT tax-deductible. Interest paid by Insurer on retained funds is taxable.






15. Pre-existing illness/injury; Waiting period; Elimination period; Probationary period; Benefits - Exclusions - Limitations; Underwriting reqs.






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






17. Price of insurance per exposure unit.






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






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






20. Earned premium is $ paid for coverage to date. Unearned premium is $ paid & returnable due to coverage not provided.






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






22. War/Military; Intentional self-inflicted; Aviation (non-commercial); Foreign country; Loss of professional license; Illegal activity; Mental disorders (after 1-2 yrs.).






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






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






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






26. Beneficiary has right to leave death benefits / Insurer to protect $ from creditors; interest (taxable) paid on retained funds.






27. Annuity distributions prior to age 59 1/2 incur a 10% IRS penalty EXCEPT for death - disability - immediate annuity - or rollover.






28. 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.






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






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






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






32. 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.






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






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






35. Death benefit determined by Insured's financial goals & needs (minus assets).






36. Allows for Term policy renewal @ higher premium w/out medical exam; guarantees insurability; based on actual/attained age.






37. Physical - slippery floor; Moral - dishonest acts; Morale - carelessness or recklessness.






38. Life license + NASD (FINRA) Series 6 or 7.






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






40. Pure risk involves chance of loss ONLY (accident or misfortune). Speculative risk involves chance of loss OR gain (gambling - stock investment).






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






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






43. Must be delivered in person or by certified - registered or 1st-class mail w/ signature - unless waived by Insurance Commissioner.






44. Reappearance of disability w/in 6 mth. period after "recovery" from same disability is considered recurrence - not new disability.






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






46. Covers entire family w/ WL for breadwinner & (convertible) Level Term for spouse & children (until certain age).






47. Conditional - coverage is conditional; Personal - parties are people; Good faith - honesty/integrity; Fiduciary - req's financial trust.






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






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






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







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