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






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






3. Period of time following any children's survivor benefit & before benefits are provided to employee's widow/widower.






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






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






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






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






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






9. 4: Funds retained by Insurer until w/drawn - interest ONLY paid monthly (taxable); 5: Paid-up immediate annuity.






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






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






13. Info already known; Info that should have been known; Waived info; Irrelevant info.






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






15. Written contract that provides INCOME @ high interest rate for fixed period OR for annuitant's lifetime w/ possible death benefit.






16. Covers disabilities occurring ONLY "off" job; benefits do not overlap work. comp. (i.e. Group plan).






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






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






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






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






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






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






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






24. Process which prevents claim denial as a result of false statement or promise (made by Insurer) - which was relied upon by Insured.






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






26. Level - fixed death benefit - premium fixed until renewal; Decreasing - death benefit decreases over term - premium fixed until renewal; Increasing - death benefit increases over term - premium fixed until renewal.






27. 1: mortality probability charge; 2: Insurer's investment return; 3: expenses (admin costs - commissions). 1 - 2 = net; 1 - 2 + 3 = gross.






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






29. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






30. 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.






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






32. Privately-sold policies to provide benefits not covered by Medicare; divided into 12 plans listed alphabetically A - L; 30-day free look; guaranteed renewable.






33. 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.






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. Federally-sponsored health care for individuals 65+ &/or w/ certain disabilities; may run concurrent w/ group plan but group plan would act primary - THEN Medicare.






36. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






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






38. Life license + NASD (FINRA) Series 6 or 7.






39. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)






40. Pure risk involves chance of loss ONLY (accident or misfortune). Speculative risk involves chance of loss OR gain (gambling - stock investment).






41. An unintentional mistake committed by an insurance representative; may be covered by E&O insurance.






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






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






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






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






46. Receipt whereby coverage incepts immediately upon submission of full consideration - unless declined & premium refunded.






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






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






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






50. 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