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. Partially state-funded benefits for low-income people whereby cost of care is shared between state & recipient - based on income.






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






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






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






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






6. 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).






7. 'The inability to perform your OWN normal occupation or daily duties'.






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






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






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






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






12. A lapsed policy may be reinstated if not longer than 3-5 yrs. - & proof of insurability re-established - & back premiums + interest paid.






13. Receipt whereby coverage incepts ONLY after underwriting approval.






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






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






16. Federal law which allows health coverage portability when changing jobs - so long as previous coverage was in effect 63+ days; allows some tax deductibility for LTC.






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






18. Same as WL but w/ Decreasing Term rider; upon death - pays monthly income for REMAINING term AFTER which pays full death benefit.






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






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






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






22. Part of IRS Section 125 cafeteria plan - which allows pre-tax payroll deductions for qualified medical expenses or child/dependent care.






23. Benefits automatically increase annually based on inflationary index (i.e. Consumer Price Index) OR flat rate (5% max.).






24. Available for any reason up to full cash value @ fixed (max 8%) OR variable interest rate; loan $ + interest deducted from benefit @ death.






25. Permanent disability due to total loss of sight - hearing - speech or use of 2 + limbs; benefits paid even while continuing to work.






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






27. 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.






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






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






30. Qualified Annuity - Tax-deductible contributions & tax-deferred growth but fully taxable w/drawals.






31. Mathematical law stating the larger # of occurrences - the more predictable the losses; used to calculate premiums.






32. Federally-funded but state-run program for truly indigent individuals & families providing medical care at Federal clinic.






33. 1: Fixed - guaranteed fixed monthly income & fixed interest rate; 2: Variable - unguaranteed; monthly income varies based on stocks/bond returns.






34. 1: Cash (tax-free); 2: Apply to future premiums; 3: Retained by Insurer @ interest; 4: Buy Paid-up WL policy add-ons; 5: Pay-up existing policy; 6: Buy 1-yr. Term policy.






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






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






37. 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.






38. Unintentional - up to $1 -000 + legal $; Intentional - $1 -000-5 -000 + legal $; If harmful - misdemeanor + up to 1 yr. prison + up to $10 -000.






39. 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.






40. Basic Medical; Major Medical; Comprehensive Major Medical






41. 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.






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






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






44. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






45. Palliative - treatment to manage pain; Curative - treatment to cure illness/condition.






46. A company providing lump sum buyout (50-90% of total) of Life policy; becomes owner & beneficiary & assumes premium payments; usually terminally ill viator.






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






48. 4: Funds retained by Insurer until w/drawn - interest ONLY paid monthly (taxable); 5: Paid-up immediate annuity.






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






50. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.