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






2. 4: Funds retained by Insurer until w/drawn - interest ONLY paid monthly (taxable); 5: Paid-up immediate annuity.






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






4. Facultative - case by case agreements; Automatic/Treaty - automatic acceptance of risk percentage per previous agreement.






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






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






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






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






9. 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.






10. IRS allows tax-free transfer of cash values between 2 LIKE policies (i.e. Life to Life - Annuity to Annuity - or Life to Annuity).






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






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






13. Provides accidental death benefit @ full $ of "principal sum". Dismemberment is paid only @ 50% principal sum ("capital sum").






14. No-charge annuity w/drawals allowed up to 10% of total - THEN penalized on sliding scale based on # policy yrs.; conditionally waived.






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






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






17. No coverage for injuries while: 1: @ voluntary social event; 2: self-inflicted (intentional); 3: under alcohol/drug influence; 4: committing criminal act; 5: aggressor in workplace fight; 6: participating in athletic event (non-pro. athletes) 7: par






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






19. Tendency of poorer risks to seek insurance.






20. Policyholders - Mutual (participating) co. - may pay dividends; Stockholders - Stock (non-participating) co. - no dividends.






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






22. Available for any reason up to full cash value @ fixed (max 8%) OR variable interest rate; loan $ + interest deducted from benefit @ death.






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






24. Benefits NOT taxable; employer-paid premiums deductible to employer; individual plans not deductible unless over 7 1/2% of adjusted gross income - then excess deductible.






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






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






27. 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.






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






29. Same as Comprehensive Major Medical but w/ integrated deductible; much more expensive.






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






31. Death benefits & premium automatically increase annually based on inflationary index (i.e. Consumer Price Index).






32. Waives premium upon disability of Insured until return to work; disability must persist for 90 days or longer; 1st 90 day premiums refunded after 90 days.






33. No deductible coverage for: daily room/board; ancillary costs; surgeon &/or physician expense (for added premium).






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






35. An irrevocable IRS classification of a policy (determined by the 7 Pay Test) whereby tax advantages are lost for all distributions ONLY.






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






37. Identical to Incontestable Clause in Life policy.






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






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






40. PURELY employer-funded account to reimburse employees for qualified medical expenses not covered by group health plan.






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






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






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






44. Pays death benefit until age 100 or death; builds equity (cash value); may be transferred or sold; generally level premium.






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






46. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)






47. Prevents overinsuring in order to profit from disability by coordinating benefits between Insurers.






48. Policy owner has right to determine mode of premium payment but Insurer can charge admin. fee if not annual.






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






50. 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.