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. After 2-3 yrs. - Whole Life policy equity builds tax-deferred @ fixed interest rate until it equals death benefit; borrowable but taxable.






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






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






4. 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.






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






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






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






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






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






10. 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.






11. Same as WL but death benefit increases annually - linked to Consumer Price Index; premium increases annually OR is set high from start.






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






13. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






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






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






16. 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.






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






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






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






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






21. Federal law to protect Federal employees' (& their beneficiaries') pension - group insurance - & welfare benefits.






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






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






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






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






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






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






28. Disability income is based on "earned income" (salary - bonus - commission) - not unearned income (interest - investment - rents).






29. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






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






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






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






33. Provides increased death benefit if death occurs w/in 90 days & as result of accident; relatively INexpensive add-on.






34. Same as WL but policy owner can adjust death benefit w/ corresponding premium adjustments; mostly obsolete.






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






36. 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.






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






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






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






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






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






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






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






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






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






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






47. Revocable - changeable anytime w/ Change of Beneficiary Form; Irrevocable - not changeable w/out beneficiary permission.






48. Prepaid med. benefits for members w/ approved primary care M.D. (independent); low co-pay; non-PPO M.D. can be used at higher cost.






49. 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).






50. War; elective cosmetic surgery; routine dental; work. comp.-covered claims; self-inflicted (intentional); gov't. facility treatment; LTC; private nursing.