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






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






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






4. 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.






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






6. Same as WL but death benefit decreases each yr. w/ dividends paid annually to offset decrease.






7. Policy must be delivered w/ original (or copy of same) application attached.






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






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






10. 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.






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






12. Waives premium upon disability of Insured until return to work; disability must persist for 6 mths. or longer. Cash value & dividends not affected.






13. Prepaid med. benefits for "subscribers" @ approved facilities; many non-profit; Blue Cross - Hospital stays; Blue Shield - M.D. costs.






14. 'The inability to perform ANY reasonable occupation based on education - training or experience'.






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






16. 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.






17. 'The inability to perform ANY gainful occupation'.






18. Allows Term policy conversion to Permanent policy w/out medical exam; must be identical or lower death benefit; based on either attained OR original age.






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






20. Dividends are NOT taxable but interest is. Loan interest is NOT tax-deductible. Interest paid by Insurer on retained funds is taxable.






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






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






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






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






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






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






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






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






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






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






32. 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






33. 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.






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






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






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






37. Upon notice - Insurer must provide Claim Form (Proof of Loss Form) to Insured w/in 15 days.






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






39. Upon death - death benefit is paid + the aggregate of cash value accumulated to date; add-on to WL policy ONLY.






40. Facultative - case by case agreements; Automatic/Treaty - automatic acceptance of risk percentage per previous agreement.






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






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






43. Written contract to transfer risk of premature death from one party to another; pays stated sum upon death; creates instant estate.






44. 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.






45. Provides increased death benefit if death occurs w/in 90 days & as result of accident; relatively INexpensive add-on.






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






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






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






49. Price of insurance per exposure unit.






50. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.