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. 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.






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






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






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






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






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






7. 4: Funds retained by Insurer until w/drawn - interest ONLY paid monthly (taxable); 5: Paid-up immediate annuity.






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






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






10. Provides professional services - rehabilitation - training/re-training & related costs to assist Insured in returning to work.






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






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

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13. Coverage remains in effect for 31 days past premium due date; benefits paid during grace period would be deducted from sum.






14. Available for any reason up to full cash value @ fixed (max 8%) OR variable interest rate; loan $ + interest deducted from benefit @ death.






15. 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.






16. Insured can seek legal action against Insurer for denial of claim only after 60 days and up to 3 yrs. after providing proof of loss.






17. War; elective cosmetic surgery; routine dental; work. comp.-covered claims; self-inflicted (intentional); gov't. facility treatment; LTC; private nursing.






18. Employer w/ 25 or less employees must offer all eligible employees @ least 2 medical plan options where pre-existing conditions can't be excluded more than 1 yr.






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






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






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






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






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






24. Same as WL but w/ Decreasing Term rider; upon death - pays monthly income for REMAINING term AFTER which pays full death benefit.






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






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






27. Identical to Incontestable Clause in Life policy.






28. 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.






29. Benefits automatically increase annually based on inflationary index (i.e. Consumer Price Index) OR flat rate (5% max.).






30. 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.






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






32. Monthly; Quarterly; Semi-annually; Annually (cheapest due to less admin cost).






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






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






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






36. 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.






37. Periodic return of premium to policy owners from Mutual (Par) Companies; not guaranteed & not taxable as income; may be used in 6 ways.






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






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






40. 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.






41. Death benefit is NOT taxable. Cash value grows tax-deferred but cost basis (base premium) is not taxable - only interest is.






42. Facultative - case by case agreements; Automatic/Treaty - automatic acceptance of risk percentage per previous agreement.






43. Basic Medical; Major Medical; Comprehensive Major Medical






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






45. Hybrid of HMO & PPO w/ greater flexibility on choosing specialists outside network w/ benefits still provided but @ higher co-pay.






46. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)






47. No-cost provision that authorizes Insurer to borrow from cash value to pay unpaid premiums after grace period; must ask for @ app. time.






48. Earned premium is $ paid for coverage to date. Unearned premium is $ paid & returnable due to coverage not provided.






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






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