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






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






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






4. 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.






5. 1: Individual; 2: Joint - multiple annuitants paid until 1st dies; 3: Joint & Survivor - multiple annuitants paid until 1st dies THEN survivors paid but @ reduced $.






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






7. Group plan initially self-funded by employer (like SIR); after which - group plan Insurer covers (up to policy limit); requires TPA.






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






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






10. Written contract that provides INCOME @ high interest rate for fixed period OR for annuitant's lifetime w/ possible death benefit.






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






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






13. Insurer has right to adjust (+ or -) death benefit if age or sex is misstated but normally doesn't void policy.






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






15. Pre-existing illness/injury; Waiting period; Elimination period; Probationary period; Benefits - Exclusions - Limitations; Underwriting reqs.






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






17. Responsible adult trustee designated to manage death benefits for minor child beneficiary until adulthood.






18. Allows policy owner to w/draw set % of death benefit upon verification of terminal illness w/ expectancy 12-24 mths.; generally tax-free.






19. Covers disabilities occurring both "on" AND "off" job; "on" job benefits paid in addition to work. comp. - if applicable (i.e. individual plan).






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






21. 1: Immediate benefits rec'd w/in 30 days but premium must be paid by lump sum; 2: Deferred - usually until retirement.






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






23. 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.






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






25. Part of IRS Section 125 cafeteria plan - which allows pre-tax payroll deductions for qualified medical expenses or child/dependent care.






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






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






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






29. 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.






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






31. 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.






32. Financial interest in insured party that must exist @ time of application OR policy issuance. Requires consent (except minors).






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






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






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






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






37. Qualified Annuity - Tax-deductible contributions & tax-deferred growth but fully taxable w/drawals.






38. 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.






39. 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.






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






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






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






43. Receipt whereby coverage incepts ONLY after underwriting approval.






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






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






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






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






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






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






50. No-cost provision that authorizes Insurer to borrow from cash value to pay unpaid premiums after grace period; must ask for @ app. time.