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. Federal law which prohibits companies w/ 20+ employees from denying work & medical benefits to employees due to age.






2. Provides supplemental coverage for physician/surgeon fees if enrolled (during enrollment period ONLY) & pay monthly premium w/ deductible and co-insurance.






3. 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.






4. 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.






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






6. Insurer has right to rescind policy & return premium if material misrepresentation in application is found w/in 1st 2 yrs.






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






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






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






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






11. 1: mortality probability charge; 2: Insurer's investment return; 3: expenses (admin costs - commissions). 1 - 2 = net; 1 - 2 + 3 = gross.






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






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






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






15. 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.






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






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






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






19. 1: Straight aka Pure Life - lifetime income but no survivorship refund; 2: Life w/ Period Certain - lifetime income w/ death benefit of monthly annuity for remaining predetermined term. 3: Annuity Certain - monthly income paid for predetermined term






20. 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.






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






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






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






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






25. 1: Individual; 2: Joint - multiple annuitants paid until 1st dies; 3: Joint & Survivor - multiple annuitants paid until 1st dies THEN survivors paid but @ reduced $.






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






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






28. Basic Medical; Major Medical; Comprehensive Major Medical






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






30. Provides professional services - rehabilitation - training/re-training & related costs to assist Insured in returning to work.






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






32. Mathematical calculation based on overall FICA contributions used to determine retirement/disability/survivorship benefit.






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






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






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






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






37. Policy covering minor child; premium fixed but death benefit increases by 5 times @ age 18 or 21.






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






39. Fraternal - non-profit - members only; Reciprocal - unincorp'd org. - members insure each other; Lloyd's Assoc. - groups sharing risks; Surplus lines - special market risks.






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






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






42. War - 2 types; Suicide (1st 2 yrs.); Aviation (non-commercial); Hazardous hobbies; Criminal acts; Alcohol/Drug influenced.






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






44. Tendency of poorer risks to seek insurance.






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






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






47. Excludes coverage for suicide during 1st 2 yrs. ONLY but - if it does - all premiums must be returned to beneficiary.






48. Grows @ fixed interest rate for set term but cash value may adjust to prevailing rate (+ or -) if fully surrendered before term ends; % w/drawal ok.






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






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