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






2. Excludes coverage for specific injury/illness either temporarily or permanently in order to eliminate pre-existing condition.






3. A&H - A&S - Sickness only; Medical; Disability; Accident only; Travel accident; LTC; Medicare supplement; AD&D; Dental/Vision/Prescription; Limited.






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






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






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






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






8. Mandatory 100% employer-funded coverage for injuries/illnesses occurring "on" job; full-time employees only; exclusive remedy. Provides: 1: unlimited medical benefit; 2: survivor income replacement & funeral ($5 -000 max.); 3: disability benefit @ 66

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






10. Mathematical calculation based on overall FICA contributions used to determine retirement/disability/survivorship benefit.






11. Group plan initially self-funded by employer (like SIR); after which - group plan Insurer covers (up to policy limit); requires TPA.






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






13. Same as WL but death benefit decreases each yr. w/ dividends paid annually to offset decrease.






14. Fixed premium w/ guaranteed min. death benefit that may increase due to higher than expected investment returns.






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






16. 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.






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






18. Provides coverage for specific disease(s) - such as cancer or leukemia.






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






20. No deductible coverage for: daily room/board; ancillary costs; surgeon &/or physician expense (for added premium).






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






22. Tendency of poorer risks to seek insurance.






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






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






25. If total premiums paid w/in 1st 7 yrs. exceed net level premium that should have been paid - policy is an MEC.






26. To "make whole again" w/out benefit or detriment; neither monetary profit nor loss.






27. Receipt whereby coverage incepts ONLY after underwriting approval.






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






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






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






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






32. 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.






33. Federal program financed by payroll taxes provided equally by both employer & employee OR entirely by individual (if self-employed). Provides benefits for: Medicare @ age 65+; retirement; $255 lump sum death benefit; (limited) disability; survivors;






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






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






36. Receipt whereby coverage incepts immediately upon submission of full consideration - unless declined & premium refunded.






37. Price of insurance per exposure unit.






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






39. Federal law to protect Federal employees' (& their beneficiaries') pension - group insurance - & welfare benefits.






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






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






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






43. 'The inability to perform your OWN normal occupation or daily duties'.






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






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






46. Privately-provided or Medicare-provided (if no private carrier) prescription drug plans for qualified individuals but w/ premium - deductible & co-pay.






47. Benefits NOT taxable; employer-paid premiums deductible to employer; individual plans not deductible unless over 7 1/2% of adjusted gross income - then excess deductible.






48. Unilateral - Insurer provides contract; Adhesion - parties must adhere to terms; Aleatory - benefits may not inure equally.






49. 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.






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