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






2. Same as WL but premium low for 1st 5 yrs. - THEN has annual premium increases for set # yrs. - THEN level premium.






3. Policy owner must notify Insurer of loss either in writing - in person or by phone w/in 20 days.






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






5. 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.






6. 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.






7. 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.






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






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






10. Policy owner has 90 days from date of loss to submit proof of loss to Insurer; valid claim must be paid immediately upon receipt.






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






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






13. Premiums determined by target cash values or death benefit; partial cash value w/drawals allowed; transparent policy w/ unbundled premium.






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






15. Policy owner has right to determine mode of premium payment but Insurer can charge admin. fee if not annual.






16. 1: Individual; 2: Joint - multiple annuitants paid until 1st dies; 3: Joint & Survivor - multiple annuitants paid until 1st dies THEN survivors paid but @ reduced $.






17. Mathematical law stating the larger # of occurrences - the more predictable the losses; used to calculate premiums.






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






19. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






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






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






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






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






24. 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.






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






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






27. 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.






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






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






30. 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






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






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






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






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






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






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






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






38. Provides disability income during surgery recovery from life-threatening condition (& sometimes cosmetic surgery).






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






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






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






42. Insurer has right to rescind policy & return premium if material misrepresentation in application is found w/in 1st 2 yrs.






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






44. 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.






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






46. Insurance purchased by other Insurer(s) to spread or diversify risk; promotes industry stability.






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






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






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






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