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. Permanent disability due to total loss of sight - hearing - speech or use of 2 + limbs; benefits paid even while continuing to work.






2. Intentional deception; grounds for rescission.






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






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






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






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






7. Unilateral - Insurer provides contract; Adhesion - parties must adhere to terms; Aleatory - benefits may not inure equally.






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






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






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






11. Grows @ fixed min. interest rate but w/ possible higher rate tied to equity index (i.e S&P Equity Index) appreciation; gains shared w/ Insurer.






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






13. Provides hospital insurance automatically @ age 65 (if FICA qualified) @ no fee but may have deductible & co-pay.






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






15. 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






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






17. Price of insurance per exposure unit.






18. Available for any reason up to full cash value @ fixed (max 8%) OR variable interest rate; loan $ + interest deducted from benefit @ death.






19. War; elective cosmetic surgery; routine dental; work. comp.-covered claims; self-inflicted (intentional); gov't. facility treatment; LTC; private nursing.






20. Death benefit determined by Insured's projected lost earnings potential.






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






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






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






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






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






26. 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.






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






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






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






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






31. Allows for use of HMO/PPO or other private carrier to provide expanded benefits @ additional premium & if enrolled in BOTH Parts A & B.






32. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)






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






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






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






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






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






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






39. Disability policy rider covering "the inability to perform some - but not all of your duties"; pays max. 50% of disability benefit for up to 6 mths.






40. Underwriting - determines insurability; Marketing/Sales - determines products; Actuarial - determines rates; Claims - investigates/pays claims.






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






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






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






44. Extreme form of Limited Pay Whole Life whereby entire premium is paid in a single payment.






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






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






47. Identical to Incontestable Clause in Life policy.






48. Prepaid med. benefits for "subscribers" @ approved facilities; many non-profit; Blue Cross - Hospital stays; Blue Shield - M.D. costs.






49. Death benefit determined by Insured's financial goals & needs (minus assets).






50. Provides increased death benefit if death occurs w/in 90 days & as result of accident; relatively INexpensive add-on.