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






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






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






4. Written policy terms supersede oral statements made prior to policy issue.






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






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






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






8. Policy must be delivered w/ original (or copy of same) application attached.






9. Agents - represent Insurer; Brokers - represent themselves & Insured; Solicitors - represent one agent to solicit leads.






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






11. Same as WL but premium low for 1st 3-5 yrs. - THEN has one-time premium increase.






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






13. 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.






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






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






16. Permanent - not recoverable (spinal cord injury); Temporary - recoverable (temp. illness/injury - broken limb).






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






18. PURELY employer-funded account to reimburse employees for qualified medical expenses not covered by group health plan.






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






20. Identical to Incontestable Clause in Life policy.






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






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






23. 1: mortality probability charge; 2: Insurer's investment return; 3: expenses (admin costs - commissions). 1 - 2 = net; 1 - 2 + 3 = gross.






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






25. War - 2 types; Suicide (1st 2 yrs.); Aviation (non-commercial); Hazardous hobbies; Criminal acts; Alcohol/Drug influenced.






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






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






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






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






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






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






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






33. Same as WL but cash value increases @ current interest rates (not set); premium can start low or high & may change.






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






35. 1: Individual; 2: Joint - multiple annuitants paid until 1st dies; 3: Joint & Survivor - multiple annuitants paid until 1st dies THEN survivors paid but @ reduced $.






36. 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.






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






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






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






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






41. WL policy covering 2 or more Insureds but ONLY payable upon death of LAST Insured - generally low premium but high death benefit.






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






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






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






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






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






48. An attempt to contain costs by employing various strategies - including wellness programs - preventative testing - outpatient & alternative procedures.






49. Basic Medical; Major Medical; Comprehensive Major Medical






50. 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.