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






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






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






4. 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.






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






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






7. Refund of 50-80% of premium (minus claims paid) every 5-10 yrs. OR age 65; expensive!






8. Policy provisions must conform to state regulations where policy is sold.






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






10. 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.






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






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






14. Price of insurance per exposure unit.






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






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






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






18. 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.






19. Grows @ fixed interest rate for set term but cash value may adjust to prevailing rate (+ or -) if fully surrendered before term ends; % w/drawal ok.






20. 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.






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






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






23. Compensates business for loss due to death or disability of key employee; premiums not deductible but benefits tax-free.






24. Compensates business for loss due to disability of key employee; premiums not deductible but benefits tax-free.






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






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






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






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






29. Same as WL but can be "paid-up" early by paying larger premium for shorter payment period (i.e. 10 Pay Life - 20 Pay Life).






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






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






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






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






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






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






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






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






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






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






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






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






42. 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






43. Any person - assoc. - org. - partnership - business trust - LLC - or corp. capable of making an insurance contract.






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






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






46. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






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






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






49. Policy covering minor child; premium fixed but death benefit increases by 5 times @ age 18 or 21.






50. IRS allows tax-free transfer of cash values between 2 LIKE policies (i.e. Life to Life - Annuity to Annuity - or Life to Annuity).