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. Allows policy owner to w/draw set % of death benefit upon verification of terminal illness w/ expectancy 12-24 mths.; generally tax-free.






3. 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.






4. Govt. organization providing health care benefits for dependents of military personnel.






5. 'The inability to perform ANY gainful occupation'.






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






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






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

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






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






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






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






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






14. Savings account for medical expenses; Tax-deductible contributions; tax-deferred growth; tax-free for qualified use; taxable for non-qualified use.






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






16. Same as Universal Life but cash value put in investment vehicles chosen by policy owner (stocks - bonds - munis.); cash value NOT guaranteed.






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






18. 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.






19. Identical to Incontestable Clause in Life policy.






20. Allows for Term policy renewal @ higher premium w/out medical exam; guarantees insurability; based on actual/attained age.






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






23. 4: Funds retained by Insurer until w/drawn - interest ONLY paid monthly (taxable); 5: Paid-up immediate annuity.






24. Allows for use of HMO/PPO or other private carrier to provide expanded benefits @ additional premium & if enrolled in BOTH Parts A & B.






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






26. 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






27. Application submitted w/out premium; no coverage until submission of full consideration & completed Statement of Continued Good Health.






28. Covers disabilities occurring both "on" AND "off" job; "on" job benefits paid in addition to work. comp. - if applicable (i.e. individual plan).






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






30. Same as Term Life but provides living benefit (endowment) to policy owner if Insured survives entire term.






31. A company providing lump sum buyout (50-90% of total) of Life policy; becomes owner & beneficiary & assumes premium payments; usually terminally ill viator.






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






33. Mortality is the statistical possibility of death @ each age. Morbidity is the statistical possibility & extent of disability @ each age.






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






35. Coverage for catastrophic loss w/ high limits - front end deductible; co-insurance (80/20%); blanket coverage; stop loss max.






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






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






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






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






40. 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.






41. Business continuation funding plan whereby each partner agrees to buy Life policies on each other - but not themselves.






42. Non-qualified Annuity - Non-deductible contributions & tax-deferred growth. At pay-out - tax-free principal but taxable growth.






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






44. Physical - slippery floor; Moral - dishonest acts; Morale - carelessness or recklessness.






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






46. Permanent disability due to total loss of sight - hearing - speech or use of 2 + limbs; benefits paid even while continuing to work.






47. 1: Fixed - guaranteed fixed monthly income & fixed interest rate; 2: Variable - unguaranteed; monthly income varies based on stocks/bond returns.






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






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






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