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






2. Insured can seek legal action against Insurer for denial of claim only after 60 days and up to 3 yrs. after providing proof of loss.






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






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






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






6. Price of insurance per exposure unit.






7. Coverage remains in effect for 31 days past premium due date; benefits paid during grace period would be deducted from sum.






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






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






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






11. War/Military; Intentional self-inflicted; Aviation (non-commercial); Foreign country; Loss of professional license; Illegal activity; Mental disorders (after 1-2 yrs.).






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






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






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






15. Intentional deception; grounds for rescission.






16. Govt. organization providing health care benefits for dependents of military personnel.






17. Potential circumstance that could cause a loss; measured in dollars.






18. 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.






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






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






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






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






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






24. Temp. coverage for set duration w/ death benefit ONLY (no cash value) - offers largest $ for lowest premium; renewable; convertible.






25. Upon death - death benefit is paid + the aggregate of premiums paid to date; add-on to Term policy ONLY.






26. Both Contributory & Non-contributory Group policies are deductible to employer (not employee) but benefits are taxable. Individual policy premium is NOT deductible but benefit is received tax-free.






27. 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.






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






29. Same as Term Life but provides living benefit (endowment) to policy owner if Insured survives entire term.






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






31. Permanent - not recoverable (spinal cord injury); Temporary - recoverable (temp. illness/injury - broken limb).






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






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






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






35. Guaranteed min. interest rate on cash value buildup but possible higher rate if short-term investment returns higher than expected.






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






37. Allows Term policy conversion to Permanent policy w/out medical exam; must be identical or lower death benefit; based on either attained OR original age.






38. Plan A is the CORE benefit & is least expensive; All other plans include Plan A + additional benefits. Plans F & J are high deductible. K & L are both deductible & co-pay plans.






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






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






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






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






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






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






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






46. Agreement - Offer & acceptance; Consideration - application + premium; Legal capacity - licensed &/or competent; Legal purpose - public good.






47. 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.






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






49. Domestic - within home state; Foreign - outside home state; Alien - outside home country.






50. Part A - Inpatient hospital deductibles vary on # of days; limited reserve days; finite benefit; 1st 3 pints blood; Part B - 20% co-payment.