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. Intentional deception; grounds for rescission.






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






3. Generally 10 days after policy delivery to cancel policy w/ full refund - except 30 days for seniors or for replacement policies.






4. Provides for continued operation of business if partner dies - by allowing surviving partner(s) to buy deceased partner's interest in business.






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






6. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)






7. Refund of 50-80% of premium (minus claims paid) every 5-10 yrs. OR age 65; expensive!






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






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






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






11. Prepaid med. benefits for "subscribers" @ approved facilities; many non-profit; Blue Cross - Hospital stays; Blue Shield - M.D. costs.






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






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






14. 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.






15. Provides coverage for specific disease(s) - such as cancer or leukemia.






16. Premiums determined by target cash values or death benefit; partial cash value w/drawals allowed; transparent policy w/ unbundled premium.






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






18. Upon death - death benefit is paid + the aggregate of cash value accumulated to date; add-on to WL policy ONLY.






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






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






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






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






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






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






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






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






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






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






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






30. 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.






31. Allows Insured to increase benefit w/out medical exam (subject to age max.) w/ additional premium rate determined @ attained age; must prove income increase.






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






33. Death benefit determined by Insured's financial goals & needs (minus assets).






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






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






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






37. Business continuation funding plan whereby each partner agrees to buy Life policies on each other - but not themselves.






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






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






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






41. Excludes coverage for specific injury/illness either temporarily or permanently in order to eliminate pre-existing condition.






42. 1: Immediate benefits rec'd w/in 30 days but premium must be paid by lump sum; 2: Deferred - usually until retirement.






43. Allows for Term policy renewal @ higher premium w/out medical exam; guarantees insurability; based on actual/attained age.






44. Receipt whereby coverage incepts ONLY after underwriting approval.






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






46. Earned premium is $ paid for coverage to date. Unearned premium is $ paid & returnable due to coverage not provided.






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






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






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






50. 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.