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. Unintentional - up to $1 -000 + legal $; Intentional - $1 -000-5 -000 + legal $; If harmful - misdemeanor + up to 1 yr. prison + up to $10 -000.






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






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






4. Same as WL but premium low for 1st 5 yrs. - THEN has annual premium increases for set # yrs. - THEN level premium.






5. Annuity distributions prior to age 59 1/2 incur a 10% IRS penalty EXCEPT for death - disability - immediate annuity - or rollover.






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






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






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






9. Same as WL but w/ Decreasing Term rider; upon death - pays monthly income for REMAINING term AFTER which pays full death benefit.






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






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






12. Prohibited w/ regard to testing for people of same class; test results must remain confidential; coverage may be declined (once discovered).






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






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






15. Same as WL but w/ Level Term rider; upon death - pays monthly income for FULL term AFTER which pays full death benefit.






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






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






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






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






20. 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






21. WL policy covering 2 or more Insureds but ONLY payable upon death of LAST Insured - generally low premium but high death benefit.






22. Commercial (private) companies; HMOs; PPOs; Blue Cross/Blue Shield; Employer-sponsored plans; Government.






23. Pure risk involves chance of loss ONLY (accident or misfortune). Speculative risk involves chance of loss OR gain (gambling - stock investment).






24. Conditional - coverage is conditional; Personal - parties are people; Good faith - honesty/integrity; Fiduciary - req's financial trust.






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






26. Provides medical & personal services for people needing extended assistance w/ Activities of Daily Living (ADL). Other benefits include: assisted living care; respite care; hospice care; adult day care.






27. The state in which the contract is accepted or delivered is the state that possesses regulatory jurisdiction over Group plan.






28. Death benefits & premium automatically increase annually based on inflationary index (i.e. Consumer Price Index).






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






30. Federally-funded but state-run program for truly indigent individuals & families providing medical care at Federal clinic.






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






32. Group plan initially self-funded by employer (like SIR); after which - group plan Insurer covers (up to policy limit); requires TPA.






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






34. Agents - represent Insurer; Brokers - represent themselves & Insured; Solicitors - represent one agent to solicit leads.






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






36. Refund of 50-80% of premium (minus claims paid) every 5-10 yrs. OR age 65; expensive!






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






38. 1: Immediate benefits rec'd w/in 30 days but premium must be paid by lump sum; 2: Deferred - usually until retirement.






39. War/Military; Intentional self-inflicted; Aviation (non-commercial); Foreign country; Loss of professional license; Illegal activity; Mental disorders (after 1-2 yrs.).






40. 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.






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






42. Accumulation or "pay-in" - contributions & interest earned are tax-deferred; Annuity or "pay-out" - monthly annuity (taxable) paid.






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






44. Coverage remains in effect for 31 days past premium due date; benefits paid during grace period would be deducted from sum.






45. Primary - if 2 or more - equally shared; Contingent (Secondary) - only if primary dead; Tertiary - only if both primary & secondary dead. If none listed - goes to estate.






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






47. Combination of Basic Medical & Major Medical in one policy; Basic pays 1st - then Major Medical w/ corridor deductible.






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






49. Insurer has right to rescind policy & return premium if material misrepresentation in application is found w/in 1st 2 yrs.






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