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. Basic Medical; Major Medical; Comprehensive Major Medical






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






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






4. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






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






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






7. Dividends are NOT taxable but interest is. Loan interest is NOT tax-deductible. Interest paid by Insurer on retained funds is taxable.






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






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






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






11. 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.






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






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






14. Unintentional - up to $1 -000 + legal $; Intentional - $1 -000-5 -000 + legal $; If harmful - misdemeanor + up to 1 yr. prison + up to $10 -000.






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






16. Commercial (private) companies; HMOs; PPOs; Blue Cross/Blue Shield; Employer-sponsored plans; Government.






17. 1: Fixed - guaranteed fixed monthly income & fixed interest rate; 2: Variable - unguaranteed; monthly income varies based on stocks/bond returns.






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






19. 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.






20. A lapsed policy may be reinstated if not longer than 3-5 yrs. - & proof of insurability re-established - & back premiums + interest paid.






21. Provides % of monthly income benefit if Insured becomes disabled due to illness or accident.






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






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






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






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






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






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






28. Funding mechanism whereby employer & employee share cost of premium. Upon death - benefit is shared between employer & beneficiary.






29. Same as WL but death benefit decreases each yr. w/ dividends paid annually to offset decrease.






30. 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.






31. 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.






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






33. Same as WL but cash value increases @ current interest rates (not set); premium can start low or high & may change.






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






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






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






37. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






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






39. Federally-funded but state-run program for truly indigent individuals & families providing medical care at Federal clinic.






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






41. Provides benefit during Social Security "black-out" period - up to 1 yr.






42. 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.






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






44. Provides supplemental coverage for physician/surgeon fees if enrolled (during enrollment period ONLY) & pay monthly premium w/ deductible and co-insurance.






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






46. Pre-existing illness/injury; Waiting period; Elimination period; Probationary period; Benefits - Exclusions - Limitations; Underwriting reqs.






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






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






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






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