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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. Identical to Incontestable Clause in Life policy.






2. 1: Fixed - guaranteed fixed monthly income & fixed interest rate; 2: Variable - unguaranteed; monthly income varies based on stocks/bond returns.






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






4. Federal program financed by payroll taxes provided equally by both employer & employee OR entirely by individual (if self-employed). Provides benefits for: Medicare @ age 65+; retirement; $255 lump sum death benefit; (limited) disability; survivors;






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






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






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






8. 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






9. Earned premium is $ paid for coverage to date. Unearned premium is $ paid & returnable due to coverage not provided.






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






11. Two death benefit options - Option A: death benefit ONLY; Option B: death benefit + cash value; death benefit NOT guaranteed.






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






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






14. Dependent children are covered until 19 or 23 (full-time student only) or until self-sufficient (if handicapped).






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






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






17. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






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






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






20. Guaranteed min. interest rate on cash value buildup but possible higher rate if short-term investment returns higher than expected.






21. 4: Funds retained by Insurer until w/drawn - interest ONLY paid monthly (taxable); 5: Paid-up immediate annuity.






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






23. Policyholders - Mutual (participating) co. - may pay dividends; Stockholders - Stock (non-participating) co. - no dividends.






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






25. Grows @ fixed interest rate for set term but cash value may adjust to prevailing rate (+ or -) if fully surrendered before term ends; % w/drawal ok.






26. Period of time following any children's survivor benefit & before benefits are provided to employee's widow/widower.






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






28. 1: mortality probability charge; 2: Insurer's investment return; 3: expenses (admin costs - commissions). 1 - 2 = net; 1 - 2 + 3 = gross.






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






30. Revocable - changeable anytime w/ Change of Beneficiary Form; Irrevocable - not changeable w/out beneficiary permission.






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






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






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






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






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






36. Part A - Inpatient hospital deductibles vary on # of days; limited reserve days; finite benefit; 1st 3 pints blood; Part B - 20% co-payment.






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






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






39. Financial interest in insured party that must exist @ time of application OR policy issuance. Requires consent (except minors).






40. Mathematical law stating the larger # of occurrences - the more predictable the losses; used to calculate premiums.






41. WL policy covering 2 or more Insureds but payable upon death of FIRST Insured - after which policy ends.






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






43. Level - fixed death benefit - premium fixed until renewal; Decreasing - death benefit decreases over term - premium fixed until renewal; Increasing - death benefit increases over term - premium fixed until renewal.






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






45. Govt. organization providing health care benefits for dependents of military personnel.






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






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






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






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






50. 'The inability to perform ANY gainful occupation'.







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