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






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






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






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






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






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






7. Upon notice - Insurer must provide Claim Form (Proof of Loss Form) to Insured w/in 15 days.






8. WL policy covering 2 or more Insureds but payable upon death of FIRST Insured - after which policy ends.






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






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






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






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






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






14. Covers disabilities occurring ONLY "off" job; benefits do not overlap work. comp. (i.e. Group plan).






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






16. Both Contributory & Non-contributory Group policies are deductible to employer (not employee) but benefits are taxable. Individual policy premium is NOT deductible but benefit is received tax-free.






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






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






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






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






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






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






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






24. Process which prevents claim denial as a result of false statement or promise (made by Insurer) - which was relied upon by Insured.






25. Same as WL but w/ Level Term rider; upon death - pays monthly income for FULL term AFTER which pays full death benefit.






26. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






27. 1: Immediate benefits rec'd w/in 30 days but premium must be paid by lump sum; 2: Deferred - usually until retirement.






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






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






30. Excludes coverage for suicide during 1st 2 yrs. ONLY but - if it does - all premiums must be returned to beneficiary.






31. 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.






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






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






34. 1: Individual; 2: Joint - multiple annuitants paid until 1st dies; 3: Joint & Survivor - multiple annuitants paid until 1st dies THEN survivors paid but @ reduced $.






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






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






37. Generally 10 days after policy delivery to cancel policy w/ full refund - except 30 days for seniors or for replacement policies.






38. Privately-sold policies to provide benefits not covered by Medicare; divided into 12 plans listed alphabetically A - L; 30-day free look; guaranteed renewable.






39. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






40. Waives premium upon disability of Insured until return to work; disability must persist for 90 days or longer; 1st 90 day premiums refunded after 90 days.






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






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






43. Insurer has right to rescind policy & return premium if material misrepresentation in application is found w/in 1st 2 yrs.






44. Preferred or Preferred Smoker; Standard or Standard Smoker; Substandard; Denied.






45. 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.






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

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






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






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






50. 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.