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






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. Provides 24 hr. health coverage both "on" & "off" job - but may cause coverage duplication & coordination challenges.






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






5. Expands individual WL policy to include Term Life for dependents (spouse - children - etc.).






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






7. Intentional deception; grounds for rescission.






8. 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.






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






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






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






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






13. Receipt whereby coverage incepts immediately upon submission of full consideration - unless declined & premium refunded.






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






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






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






17. Treating or mitigating loss exposures through 1: avoidance; 2: retention (deductibles); 3: sharing; 4: reduction; or 5: transfer.






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






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






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






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






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






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






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






25. If Insured & primary beneficiary die due to same act (w/in 14 days) - primary assumed 1st to die & contingent beneficiary paid death benefit.






26. Provides % of monthly income benefit if Insured becomes disabled due to illness or accident.






27. Federal law which allows health coverage portability when changing jobs - so long as previous coverage was in effect 63+ days; allows some tax deductibility for LTC.






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






29. 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.






30. 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.






31. Funding mechanism whereby employer & employee share cost of premium. Upon death - benefit is shared between employer & beneficiary.






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






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






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






35. Allows for Term policy renewal @ higher premium w/out medical exam; guarantees insurability; based on actual/attained age.






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






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






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






39. Benefits automatically increase annually based on inflationary index (i.e. Consumer Price Index) OR flat rate (5% max.).






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






41. Time extension of benefits based on "qualifying" event. 18 mth. extension if laid off or fired; 36 mth. extension if death - divorce or child leaves home.






42. Qualified Annuity - Tax-deductible contributions & tax-deferred growth but fully taxable w/drawals.






43. Price of insurance per exposure unit.






44. Insured can seek legal action against Insurer for denial of claim only after 60 days and up to 3 yrs. after providing proof of loss.






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






46. Unilateral - Insurer provides contract; Adhesion - parties must adhere to terms; Aleatory - benefits may not inure equally.






47. 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






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






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






50. Reappearance of disability w/in 6 mth. period after "recovery" from same disability is considered recurrence - not new disability.