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: 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.






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






3. 1: Straight aka Pure Life - lifetime income but no survivorship refund; 2: Life w/ Period Certain - lifetime income w/ death benefit of monthly annuity for remaining predetermined term. 3: Annuity Certain - monthly income paid for predetermined term






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






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






6. Identical to Incontestable Clause in Life policy.






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






8. Privately-provided or Medicare-provided (if no private carrier) prescription drug plans for qualified individuals but w/ premium - deductible & co-pay.






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






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






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






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






13. Must be delivered in person or by certified - registered or 1st-class mail w/ signature - unless waived by Insurance Commissioner.






14. Prevents overinsuring in order to profit from disability by coordinating benefits between Insurers.






15. 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.






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






17. Any person - assoc. - org. - partnership - business trust - LLC - or corp. capable of making an insurance contract.






18. Basic Medical; Major Medical; Comprehensive Major Medical






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






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






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






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






23. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)






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






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






26. 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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27. 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.






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






29. 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






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






31. Same as WL but death benefit increases annually - linked to Consumer Price Index; premium increases annually OR is set high from start.






32. 'The inability to perform your OWN normal occupation or daily duties'.






33. 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.






34. Provides for continued operation of business if partner becomes disabled - by allowing other partner(s) to buy disabled partner's interest in business.






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






36. Privately-sold policies to provide benefits not covered by Medicare; divided into 12 plans listed alphabetically A - L; 30-day free look; guaranteed renewable.






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






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






39. War - 2 types; Suicide (1st 2 yrs.); Aviation (non-commercial); Hazardous hobbies; Criminal acts; Alcohol/Drug influenced.






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






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






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






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






44. 1: mortality probability charge; 2: Insurer's investment return; 3: expenses (admin costs - commissions). 1 - 2 = net; 1 - 2 + 3 = gross.






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






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






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






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






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






50. Reappearance of disability w/in 6 mth. period after "recovery" from same disability is considered recurrence - not new disability.