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 coverage for specific disease(s) - such as cancer or leukemia.






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






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






4. Same as WL but w/ adjustable death benefit (& corresponding premium) & over-fund option but w/ annually renewable term (ART).






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






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






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






8. Allows Insured to increase death benefit w/out medical exam (subject to age max.) w/ additional premium rate determined @ attained age.






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






10. Part A - Inpatient hospital deductibles vary on # of days; limited reserve days; finite benefit; 1st 3 pints blood; Part B - 20% co-payment.






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






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






13. Excludes coverage for specific injury/illness either temporarily or permanently in order to eliminate pre-existing condition.






14. Specialized policy covering diagnostic & preventative dental care; often no deductible; co-insurance; expensive; may be included w/ medical plan.






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






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






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






18. Provides hospital insurance automatically @ age 65 (if FICA qualified) @ no fee but may have deductible & co-pay.






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






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






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






22. IRS allows tax-free transfer of cash values between 2 LIKE policies (i.e. Life to Life - Annuity to Annuity - or Life to Annuity).






23. 4: Funds retained by Insurer until w/drawn - interest ONLY paid monthly (taxable); 5: Paid-up immediate annuity.






24. Policy provisions must conform to state regulations where policy is sold.






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






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






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






28. 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






29. Same as WL but w/ Level Term rider; upon death - pays monthly income for FULL term AFTER which pays full death benefit.






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






31. 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.






32. Written policy terms supersede oral statements made prior to policy issue.






33. Commercial (private) companies; HMOs; PPOs; Blue Cross/Blue Shield; Employer-sponsored plans; Government.






34. Policyholders - Mutual (participating) co. - may pay dividends; Stockholders - Stock (non-participating) co. - no dividends.






35. 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.






36. Plan A is the CORE benefit & is least expensive; All other plans include Plan A + additional benefits. Plans F & J are high deductible. K & L are both deductible & co-pay plans.






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






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






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






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






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






42. An irrevocable IRS classification of a policy (determined by the 7 Pay Test) whereby tax advantages are lost for all distributions ONLY.






43. Same as WL but premium low for 1st 5 yrs. - THEN has annual premium increases for set # yrs. - THEN level premium.






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






45. Preferred or Preferred Smoker; Standard or Standard Smoker; Substandard; Denied.






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






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






48. No-charge annuity w/drawals allowed up to 10% of total - THEN penalized on sliding scale based on # policy yrs.; conditionally waived.






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






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