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






2. War - 2 types; Suicide (1st 2 yrs.); Aviation (non-commercial); Hazardous hobbies; Criminal acts; Alcohol/Drug influenced.






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






4. 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.






5. Dependent children are covered until 19 or 23 (full-time student only) or until self-sufficient (if handicapped).






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






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






8. 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






9. Basic Medical; Major Medical; Comprehensive Major Medical






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






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






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






13. Domestic - within home state; Foreign - outside home state; Alien - outside home country.






14. Waives premium on Life policy for minor child until age 21 in event premium payor dies or becomes disabled.

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






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






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






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






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






20. Federal program financed by payroll taxes provided equally by both employer & employee OR entirely by individual (if self-employed). Provides benefits for: Medicare @ age 65+; retirement; $255 lump sum death benefit; (limited) disability; survivors;






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






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






23. Pays death benefit until age 100 or death; builds equity (cash value); may be transferred or sold; generally level premium.






24. Taxable income (unlike individual plans); can be either short-term - 13-52 wks. max. or long-term - longer than 52 wks.






25. Death benefit determined by Insured's projected lost earnings potential.






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






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






28. War; elective cosmetic surgery; routine dental; work. comp.-covered claims; self-inflicted (intentional); gov't. facility treatment; LTC; private nursing.






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






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






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






32. A&H - A&S - Sickness only; Medical; Disability; Accident only; Travel accident; LTC; Medicare supplement; AD&D; Dental/Vision/Prescription; Limited.






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






34. 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.






35. 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






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






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






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






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






40. Provides for continued operation of business if partner becomes disabled - by allowing other partner(s) to buy disabled partner's interest in business.






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






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






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






44. An attempt to contain costs by employing various strategies - including wellness programs - preventative testing - outpatient & alternative procedures.






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






46. Privately-provided or Medicare-provided (if no private carrier) prescription drug plans for qualified individuals but w/ premium - deductible & co-pay.






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






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






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






50. 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.