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. Insured can seek legal action against Insurer for denial of claim only after 60 days and up to 3 yrs. after providing proof of loss.






2. 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






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






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






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






6. Provides accidental death benefit @ full $ of "principal sum". Dismemberment is paid only @ 50% principal sum ("capital sum").






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






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






9. No deductible coverage for: daily room/board; ancillary costs; surgeon &/or physician expense (for added premium).






10. Excludes coverage for specific injury/illness either temporarily or permanently in order to eliminate pre-existing condition.






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






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






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






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






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






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






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






18. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






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






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






21. 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.






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






23. Partially state-funded benefits for low-income people whereby cost of care is shared between state & recipient - based on income.






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






25. 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.






26. Policy provisions must conform to state regulations where policy is sold.






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






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






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






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






31. Basic Medical; Major Medical; Comprehensive Major Medical






32. Upon death - death benefit is paid + the aggregate of premiums paid to date; add-on to Term policy ONLY.






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






34. Pays death benefit until age 100 or death; builds equity (cash value); may be transferred or sold; generally level premium.






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






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






37. Permanent - not recoverable (spinal cord injury); Temporary - recoverable (temp. illness/injury - broken limb).






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






39. 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.






40. 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.






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






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






43. Same as WL but policy owner can adjust death benefit w/ corresponding premium adjustments; mostly obsolete.






44. Type of partial disability rider - which pays fluctuating % of lost income w/out time limit.






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






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






47. Federally-sponsored health care for individuals 65+ &/or w/ certain disabilities; may run concurrent w/ group plan but group plan would act primary - THEN Medicare.






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






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






50. 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.