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. Summary of coverage including premium & mode of payment - death benefit - beneficiary(ies) - exclusions - & promise to pay.






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






3. Specialized policy covering diagnostic & preventative dental care; often no deductible; co-insurance; expensive; may be included w/ medical plan.






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






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






6. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






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






8. Provides hospital insurance automatically @ age 65 (if FICA qualified) @ no fee but may have deductible & co-pay.






9. 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.






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






11. Death benefit determined by Insured's projected lost earnings potential.






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






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






14. 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.






15. 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.






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






17. Prepaid med. benefits for members ONLY w/ approved primary care M.D. (HMO employee); focus on preventative care; low co-pay.






18. Plan A is the CORE benefit & is least expensive; All other plans include Plan A + additional benefits. Plans F & J are high deductible. K & L are both deductible & co-pay plans.






19. 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.






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






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






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






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






24. Responsible adult trustee designated to manage death benefits for minor child beneficiary until adulthood.






25. Tendency of poorer risks to seek insurance.






26. Waives premium upon disability of Insured until return to work; disability must persist for 6 mths. or longer. Cash value & dividends not affected.






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






28. Underwriting - determines insurability; Marketing/Sales - determines products; Actuarial - determines rates; Claims - investigates/pays claims.






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






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






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






32. Intentional deception; grounds for rescission.






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






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






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






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






37. 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.






38. Receipt whereby coverage incepts conditionally upon submission of full consideration and that all underwriting reqs. are met.






39. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.






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






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






42. 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.






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






44. 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.






45. Disability income is based on "earned income" (salary - bonus - commission) - not unearned income (interest - investment - rents).






46. Upon death - death benefit is paid + the aggregate of cash value accumulated to date; add-on to WL policy ONLY.






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






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






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






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