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






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






3. Level - fixed death benefit - premium fixed until renewal; Decreasing - death benefit decreases over term - premium fixed until renewal; Increasing - death benefit increases over term - premium fixed until renewal.






4. 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.






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






6. Federal law which prohibits companies w/ 20+ employees from denying work & medical benefits to employees due to age.






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






8. Actual/Expressed - written powers; Implied - unwritten but customary practices; Apparent - perceived powers.






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






10. 4: Funds retained by Insurer until w/drawn - interest ONLY paid monthly (taxable); 5: Paid-up immediate annuity.






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






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






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






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






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






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






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






18. 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.






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






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






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






22. Policyholders - Mutual (participating) co. - may pay dividends; Stockholders - Stock (non-participating) co. - no dividends.






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






24. Accumulation or "pay-in" - contributions & interest earned are tax-deferred; Annuity or "pay-out" - monthly annuity (taxable) paid.






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






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






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






28. Agreement - Offer & acceptance; Consideration - application + premium; Legal capacity - licensed &/or competent; Legal purpose - public good.






29. 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.






30. Provides medical & personal services for people needing extended assistance w/ Activities of Daily Living (ADL). Other benefits include: assisted living care; respite care; hospice care; adult day care.






31. Prevents overinsuring in order to profit from disability by coordinating benefits between Insurers.






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






33. 'The inability to perform ANY reasonable occupation based on education - training or experience'.






34. Insurer has right to adjust (+ or -) death benefit if age or sex is misstated but normally doesn't void policy.






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






36. Intentional OR unintentional failure to disclose material underwriting facts that should have been disclosed; grounds for policy rescission.






37. 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.






38. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






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






40. Time period preceding each disability during which benefits are not paid; longer elimination periods = cheaper premium.






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






42. Voiding an insurance contract based on fraud - concealment or material misrepresentation; premiums returned; policy treated as never existing.






43. Process whereby a reinsurer reinsures w/ another reinsurer.






44. 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






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






46. Price of insurance per exposure unit.






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






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






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

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