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. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






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






3. 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).






4. Written policy terms supersede oral statements made prior to policy issue.






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






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






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






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






9. Savings account for medical expenses; Tax-deductible contributions; tax-deferred growth; tax-free for qualified use; taxable for non-qualified use.






10. 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.






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






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






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






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






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






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






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






18. 1: Fixed - guaranteed fixed monthly income & fixed interest rate; 2: Variable - unguaranteed; monthly income varies based on stocks/bond returns.






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






20. 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.






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






22. Periodic return of premium to policy owners from Mutual (Par) Companies; not guaranteed & not taxable as income; may be used in 6 ways.






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






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






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






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






27. Waives premium on Life policy for minor child until age 21 in event premium payor dies or becomes disabled.

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






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






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






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






32. 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.






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






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






35. 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.






36. Extreme form of Limited Pay Whole Life whereby entire premium is paid in a single payment.






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






38. 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.






39. Voiding an insurance contract based on fraud - concealment or material misrepresentation; premiums returned; policy treated as never existing.






40. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.






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






42. Non-qualified Annuity - Non-deductible contributions & tax-deferred growth. At pay-out - tax-free principal but taxable growth.






43. Intentional deception; grounds for rescission.






44. Policy owner has 90 days from date of loss to submit proof of loss to Insurer; valid claim must be paid immediately upon receipt.






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






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






47. 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.






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






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






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