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






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






3. 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.






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






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






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






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






8. Intentional deception; grounds for rescission.






9. Multiple small employers w/ common affiliation (trade assoc. OR Chamber of Commerce) band together to purchase group plan.






10. Identical to Incontestable Clause in Life policy.






11. If total premiums paid w/in 1st 7 yrs. exceed net level premium that should have been paid - policy is an MEC.






12. Req. by CA statute & may provide workers coverage for action-over claims.






13. Excludes coverage for suicide during 1st 2 yrs. ONLY but - if it does - all premiums must be returned to beneficiary.






14. No-cost provision that authorizes Insurer to borrow from cash value to pay unpaid premiums after grace period; must ask for @ app. time.






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






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






17. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






18. Premiums determined by target cash values or death benefit; partial cash value w/drawals allowed; transparent policy w/ unbundled premium.






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






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






21. Mandatory 100% employer-funded coverage for injuries/illnesses occurring "on" job; full-time employees only; exclusive remedy. Provides: 1: unlimited medical benefit; 2: survivor income replacement & funeral ($5 -000 max.); 3: disability benefit @ 66

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22. Federal law which prohibits companies w/ 15+ employees from decreasing coverage benefits for women affected by pregnancy or childbirth.






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






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






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






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






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






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






29. Time period preceding each disability during which benefits are not paid; longer elimination periods = cheaper premium.






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






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






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






33. Permanent disability due to total loss of sight - hearing - speech or use of 2 + limbs; benefits paid even while continuing to work.






34. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






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






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






37. Although death benefit is tax-free - it is included in gross estate value so federal &/or state taxes may apply to a portion in excess of fixed federal limit.






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






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






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






41. Generally 10 days after policy delivery to cancel policy w/ full refund - except 30 days for seniors or for replacement policies.






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






43. Provides benefit during Social Security "black-out" period - up to 1 yr.






44. Experience - rates impacted by actual prior claim experience of actual group; Community - identical rates used for entire community - regardless of experience.






45. Same as WL but death benefit increases annually - linked to Consumer Price Index; premium increases annually OR is set high from start.






46. 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.






47. Fraternal - non-profit - members only; Reciprocal - unincorp'd org. - members insure each other; Lloyd's Assoc. - groups sharing risks; Surplus lines - special market risks.






48. 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.






49. Beneficiary has right to leave death benefits / Insurer to protect $ from creditors; interest (taxable) paid on retained funds.






50. Physical - slippery floor; Moral - dishonest acts; Morale - carelessness or recklessness.