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






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






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






4. 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.






5. Monthly; Quarterly; Semi-annually; Annually (cheapest due to less admin cost).






6. 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.






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






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






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






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






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






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






13. Allows Insured to increase death benefit w/out medical exam (subject to age max.) w/ additional premium rate determined @ attained age.






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






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. Policy covering minor child; premium fixed but death benefit increases by 5 times @ age 18 or 21.






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






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






19. Same as WL but premium low for 1st 3-5 yrs. - THEN has one-time premium increase.






20. Receipt whereby coverage incepts ONLY after underwriting approval.






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






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






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






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






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






26. Process whereby a reinsurer reinsures w/ another reinsurer.






27. Savings account for medical expenses; Tax-deductible contributions; tax-deferred growth; tax-free for qualified use; taxable for non-qualified use.






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






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






30. Peril is the CAUSE of loss. Hazard is a condition that increases LIKELIHOOD of loss.






31. Intentional OR unintentional failure to disclose material underwriting facts that should have been disclosed; grounds for policy rescission.






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






33. 1: mortality probability charge; 2: Insurer's investment return; 3: expenses (admin costs - commissions). 1 - 2 = net; 1 - 2 + 3 = gross.






34. Voiding an insurance contract based on fraud - concealment or material misrepresentation; premiums returned; policy treated as never existing.






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






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






37. Taxable income (unlike individual plans); can be either short-term - 13-52 wks. max. or long-term - longer than 52 wks.






38. 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






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






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






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






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






43. Waives premium on Life policy for minor child until age 21 in event premium payor dies or becomes disabled.

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44. 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.






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






46. 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






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






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






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






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







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