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






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






3. 1: Individual; 2: Joint - multiple annuitants paid until 1st dies; 3: Joint & Survivor - multiple annuitants paid until 1st dies THEN survivors paid but @ reduced $.






4. Term Life policy w/ decreasing death benefit; usually used to secure credit (loan) w/ lender as beneficiary & borrower as Insured.






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






6. Provides medical & personal services for people needing extended assistance w/ Activities of Daily Living (ADL). Other benefits include: assisted living care; respite care; hospice care; adult day care.






7. 1: Req. - unless self-employed; 2: 7-day wait for disability benefits; 3: Premium based on ex-mod; 4: Rates approved by CDI; 5: to sell - must satisfy education reqs.






8. 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.






9. 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.






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






11. 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.






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






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






14. Conditional - coverage is conditional; Personal - parties are people; Good faith - honesty/integrity; Fiduciary - req's financial trust.






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






16. Extreme form of Limited Pay Whole Life whereby entire premium is paid in a single payment.






17. Insurance purchased by other Insurer(s) to spread or diversify risk; promotes industry stability.






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






19. After 2-3 yrs. - Whole Life policy equity builds tax-deferred @ fixed interest rate until it equals death benefit; borrowable but taxable.






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






21. Same as WL but can be "paid-up" early by paying larger premium for shorter payment period (i.e. 10 Pay Life - 20 Pay Life).






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






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






24. 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;






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






26. Price of insurance per exposure unit.






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






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






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






30. Must be delivered in person or by certified - registered or 1st-class mail w/ signature - unless waived by Insurance Commissioner.






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






32. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)






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






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






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






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






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






38. Policy covering minor child; premium fixed but death benefit increases by 5 times @ age 18 or 21.






39. Federal law which prohibits companies w/ 20+ employees from denying work & medical benefits to employees due to age.






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






41. PURELY employer-funded account to reimburse employees for qualified medical expenses not covered by group health plan.






42. Identical to Incontestable Clause in Life policy.






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






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






45. 4: Funds retained by Insurer until w/drawn - interest ONLY paid monthly (taxable); 5: Paid-up immediate annuity.






46. Provides disability income during surgery recovery from life-threatening condition (& sometimes cosmetic surgery).






47. Receipt whereby coverage incepts conditionally upon submission of full consideration and that all underwriting reqs. are met.






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






49. Application submitted w/out premium; no coverage until submission of full consideration & completed Statement of Continued Good Health.






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