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. Prepaid med. benefits for members ONLY w/ approved primary care M.D. (HMO employee); focus on preventative care; low co-pay.






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






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






4. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.






5. No-charge annuity w/drawals allowed up to 10% of total - THEN penalized on sliding scale based on # policy yrs.; conditionally waived.






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






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






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






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






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






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






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






13. Conditional - coverage is conditional; Personal - parties are people; Good faith - honesty/integrity; Fiduciary - req's financial trust.






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






15. Qualified Annuity - Tax-deductible contributions & tax-deferred growth but fully taxable w/drawals.






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






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






18. 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






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






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






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






22. Although death benefit is tax-free - it is included in gross estate value so federal &/or state taxes may apply to a portion in excess of fixed federal limit.






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






24. Waives premium upon disability of Insured until return to work; disability must persist for 6 mths. or longer. Cash value & dividends not affected.






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






26. 1: Immediate benefits rec'd w/in 30 days but premium must be paid by lump sum; 2: Deferred - usually until retirement.






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






28. 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.






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






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






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






32. An irrevocable IRS classification of a policy (determined by the 7 Pay Test) whereby tax advantages are lost for all distributions ONLY.






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






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






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






36. Covers entire family w/ WL for breadwinner & (convertible) Level Term for spouse & children (until certain age).






37. 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.






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






39. Federal law to protect Federal employees' (& their beneficiaries') pension - group insurance - & welfare benefits.






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






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






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






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






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






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






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






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






48. Same as WL but w/ adjustable death benefit (& corresponding premium) & over-fund option but w/ annually renewable term (ART).






49. 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.






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