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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. Insurer has right to adjust (+ or -) death benefit if age or sex is misstated but normally doesn't void policy.






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






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






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






5. 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.






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






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






8. Same as WL but premium low for set # yrs. - THEN premiums vary (+ or -) based on Insurer's investment returns - w/ Gmax.






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






10. 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






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






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






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






14. Grows @ fixed interest rate for set term but cash value may adjust to prevailing rate (+ or -) if fully surrendered before term ends; % w/drawal ok.






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






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






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






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






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






20. Representation - oral or written statement made to best of knowledge or belief; Warranty - statement guaranteed/presumed/understood to be true.






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






22. Identical to Incontestable Clause in Life policy.






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






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






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






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






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






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






29. Hybrid of HMO & PPO w/ greater flexibility on choosing specialists outside network w/ benefits still provided but @ higher co-pay.






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






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






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






33. Private sector (Commercial) - provides LA&H - P&C - & LTC; Public sector (Gov't) - provides flood - work. comp. - Medicare/Medicaid - Group Life (SGLI/FEGLI).






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






35. 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.






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






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






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






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






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






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






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






43. Two death benefit options - Option A: death benefit ONLY; Option B: death benefit + cash value; death benefit NOT guaranteed.






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






45. To "make whole again" w/out benefit or detriment; neither monetary profit nor loss.






46. Authorized (admitted) - can conduct business in state; Unauthorized (non-admitted) - cannot conduct business in state (w/ one exception).






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

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






49. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






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







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