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






2. 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.






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






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






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






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






7. Prepaid med. benefits for members w/ approved primary care M.D. (independent); low co-pay; non-PPO M.D. can be used at higher cost.






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






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






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






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






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






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






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






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






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






17. Waives premium upon disability of Insured until return to work; disability must persist for 90 days or longer; 1st 90 day premiums refunded after 90 days.






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






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






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






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






22. Same as Term Life but provides living benefit (endowment) to policy owner if Insured survives entire term.






23. 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.






24. Employer w/ 25 or less employees must offer all eligible employees @ least 2 medical plan options where pre-existing conditions can't be excluded more than 1 yr.






25. 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.






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






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






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






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






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






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






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






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






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






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






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






37. Temp. coverage for set duration w/ death benefit ONLY (no cash value) - offers largest $ for lowest premium; renewable; convertible.






38. Benefits NOT taxable; employer-paid premiums deductible to employer; individual plans not deductible unless over 7 1/2% of adjusted gross income - then excess deductible.






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






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






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






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






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






44. Price of insurance per exposure unit.






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






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






47. Provides for continued operation of business if partner dies - by allowing surviving partner(s) to buy deceased partner's interest in business.






48. Identical to Incontestable Clause in Life policy.






49. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.






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