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






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






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






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






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






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






7. Mandatory 100% employer-funded coverage for injuries/illnesses occurring "on" job; full-time employees only; exclusive remedy. Provides: 1: unlimited medical benefit; 2: survivor income replacement & funeral ($5 -000 max.); 3: disability benefit @ 66

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


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






9. Disability policy rider covering "the inability to perform some - but not all of your duties"; pays max. 50% of disability benefit for up to 6 mths.






10. 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.






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






12. 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.






13. Provides usual & customary business expenses (rent - utilities - salaries - mortgage) if owner becomes disabled; premiums deductible - benefits taxable.






14. 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.






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






16. Coverage for catastrophic loss w/ high limits - front end deductible; co-insurance (80/20%); blanket coverage; stop loss max.






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






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






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






20. Underwriting - determines insurability; Marketing/Sales - determines products; Actuarial - determines rates; Claims - investigates/pays claims.






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






22. Identical to Incontestable Clause in Life policy.






23. Same as WL but cash value put in investment vehicles chosen by policy owner (stocks - bonds - munis.); cash value NOT guaranteed.






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






25. Federal law which prohibits companies w/ 15+ employees from decreasing coverage benefits for women affected by pregnancy or childbirth.






26. Provides accidental death benefit @ full $ of "principal sum". Dismemberment is paid only @ 50% principal sum ("capital sum").






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






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






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






30. Prohibited w/ regard to testing for people of same class; test results must remain confidential; coverage may be declined (once discovered).






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






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






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






34. Annuity distributions prior to age 59 1/2 incur a 10% IRS penalty EXCEPT for death - disability - immediate annuity - or rollover.






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






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






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






38. Covers disabilities occurring both "on" AND "off" job; "on" job benefits paid in addition to work. comp. - if applicable (i.e. individual plan).






39. Combination of Basic Medical & Major Medical in one policy; Basic pays 1st - then Major Medical w/ corridor deductible.






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






41. 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.






42. If Insured changes to: more hazardous job - benefits reduced; less hazardous job - premiums reduce.






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






44. Expands individual WL policy to include Term Life for dependents (spouse - children - etc.).






45. Covers entire family w/ WL for breadwinner & (convertible) Level Term for spouse & children (until certain age).






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






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






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






49. 1: Fixed - guaranteed fixed monthly income & fixed interest rate; 2: Variable - unguaranteed; monthly income varies based on stocks/bond returns.






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