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






2. If Insured changes to: more hazardous job - benefits reduced; less hazardous job - premiums reduce.






3. Allows Insured to increase death benefit w/out medical exam (subject to age max.) w/ additional premium rate determined @ attained age.






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






5. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






6. Experience - rates impacted by actual prior claim experience of actual group; Community - identical rates used for entire community - regardless of experience.






7. 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






8. Waives premium on Life policy for minor child until age 21 in event premium payor dies or becomes disabled.

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9. A company providing lump sum buyout (50-90% of total) of Life policy; becomes owner & beneficiary & assumes premium payments; usually terminally ill viator.






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






11. Death benefit determined by Insured's projected lost earnings potential.






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






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






14. 1: Individual; 2: Joint - multiple annuitants paid until 1st dies; 3: Joint & Survivor - multiple annuitants paid until 1st dies THEN survivors paid but @ reduced $.






15. Upon death - death benefit is paid + the aggregate of cash value accumulated to date; add-on to WL policy ONLY.






16. Policy owner has 90 days from date of loss to submit proof of loss to Insurer; valid claim must be paid immediately upon receipt.






17. 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.






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






19. 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.






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






21. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.






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






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






24. 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.






25. Coverage remains in effect for 31 days past premium due date; benefits paid during grace period would be deducted from sum.






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






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






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






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






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






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






32. Annuity distributions prior to age 59 1/2 incur a 10% IRS penalty EXCEPT for death - disability - immediate annuity - or rollover.






33. Actual/Expressed - written powers; Implied - unwritten but customary practices; Apparent - perceived powers.






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






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






36. Reappearance of disability w/in 6 mth. period after "recovery" from same disability is considered recurrence - not new disability.






37. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






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






39. 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.






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






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






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






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






44. Same as WL but premium low for 1st 3-5 yrs. - THEN has one-time premium increase.






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






46. Type of partial disability rider - which pays fluctuating % of lost income w/out time limit.






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






48. 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.






49. Covers entire family w/ WL for breadwinner & (convertible) Level Term for spouse & children (until certain age).






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