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






2. 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.






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






4. Intentional deception; grounds for rescission.






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






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






7. Provides for continued operation of business if partner dies - by allowing surviving partner(s) to buy deceased partner's interest in business.






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






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






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






11. 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.






12. 1: Req. - unless self-employed; 2: 7-day wait for disability benefits; 3: Premium based on ex-mod; 4: Rates approved by CDI; 5: to sell - must satisfy education reqs.






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






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






15. Provides coverage for specific disease(s) - such as cancer or leukemia.






16. An unintentional mistake committed by an insurance representative; may be covered by E&O insurance.






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






18. Written contract that provides INCOME @ high interest rate for fixed period OR for annuitant's lifetime w/ possible death benefit.






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






20. If 2 or more family members are injured in the same accident - only payment of a single deductible is required.






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






22. If total premiums paid w/in 1st 7 yrs. exceed net level premium that should have been paid - policy is an MEC.






23. Prepaid med. benefits for members w/ approved primary care M.D. (independent); low co-pay; non-PPO M.D. can be used at higher cost.






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






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






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






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






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






29. Generally 10 days after policy delivery to cancel policy w/ full refund - except 30 days for seniors or for replacement policies.






30. Private sector (Commercial) - provides LA&H - P&C - & LTC; Public sector (Gov't) - provides flood - work. comp. - Medicare/Medicaid - Group Life (SGLI/FEGLI).






31. Process whereby a reinsurer reinsures w/ another reinsurer.






32. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






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






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






35. Accumulation or "pay-in" - contributions & interest earned are tax-deferred; Annuity or "pay-out" - monthly annuity (taxable) paid.






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






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






38. Written policy terms supersede oral statements made prior to policy issue.






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






40. Federal law which prohibits companies w/ 15+ employees from decreasing coverage benefits for women affected by pregnancy or childbirth.






41. Representation - oral or written statement made to best of knowledge or belief; Warranty - statement guaranteed/presumed/understood to be true.






42. Treating or mitigating loss exposures through 1: avoidance; 2: retention (deductibles); 3: sharing; 4: reduction; or 5: transfer.






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






44. 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.






45. Peril is the CAUSE of loss. Hazard is a condition that increases LIKELIHOOD of loss.






46. Upon death - death benefit is paid + the aggregate of cash value accumulated to date; add-on to WL policy ONLY.






47. Potential circumstance that could cause a loss; measured in dollars.






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






49. 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.






50. Life license + NASD (FINRA) Series 6 or 7.