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. War/Military; Intentional self-inflicted; Aviation (non-commercial); Foreign country; Loss of professional license; Illegal activity; Mental disorders (after 1-2 yrs.).






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






3. 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.






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






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






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






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






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






9. Intentional deception; grounds for rescission.






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






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






12. Permanent disability due to total loss of sight - hearing - speech or use of 2 + limbs; benefits paid even while continuing to work.






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






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






15. Same as WL but death benefit decreases each yr. w/ dividends paid annually to offset decrease.






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






17. 1: Req. - unless self-employed; 2: 7-day wait for disability benefits; 3: Premium based on ex-mod; 4: Rates approved by CDI; 5: to sell - must satisfy education reqs.






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






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






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






21. 1: parties to contract; 2: insured party or life; 3: insurable interest - if 3rd party; 4: risks insured against; 5: policy period (term); 6: premium & mode.






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






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






24. 1: Cash (tax-free); 2: Apply to future premiums; 3: Retained by Insurer @ interest; 4: Buy Paid-up WL policy add-ons; 5: Pay-up existing policy; 6: Buy 1-yr. Term policy.






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






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






27. To "make whole again" w/out benefit or detriment; neither monetary profit nor loss.






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






29. Identical to Incontestable Clause in Life policy.






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






31. Plan A is the CORE benefit & is least expensive; All other plans include Plan A + additional benefits. Plans F & J are high deductible. K & L are both deductible & co-pay plans.






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






33. 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.






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






35. Death benefit is NOT taxable. Cash value grows tax-deferred but cost basis (base premium) is not taxable - only interest is.






36. Accumulation or "pay-in" - contributions & interest earned are tax-deferred; Annuity or "pay-out" - monthly annuity (taxable) paid.






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






38. 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.






39. The state in which the contract is accepted or delivered is the state that possesses regulatory jurisdiction over Group plan.






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






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






42. A&H - A&S - Sickness only; Medical; Disability; Accident only; Travel accident; LTC; Medicare supplement; AD&D; Dental/Vision/Prescription; Limited.






43. An attempt to contain costs by employing various strategies - including wellness programs - preventative testing - outpatient & alternative procedures.






44. 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.






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






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






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






48. Federal program financed by payroll taxes provided equally by both employer & employee OR entirely by individual (if self-employed). Provides benefits for: Medicare @ age 65+; retirement; $255 lump sum death benefit; (limited) disability; survivors;






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






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