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. Process which prevents claim denial as a result of false statement or promise (made by Insurer) - which was relied upon by Insured.






2. Same as WL but w/ adjustable death benefit (& corresponding premium) & over-fund option but w/ annually renewable term (ART).






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






4. Time extension of benefits based on "qualifying" event. 18 mth. extension if laid off or fired; 36 mth. extension if death - divorce or child leaves home.






5. 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.






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






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






8. 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.






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






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






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






12. Policy owner must notify Insurer of loss either in writing - in person or by phone w/in 20 days.






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






14. Application submitted w/out premium; no coverage until submission of full consideration & completed Statement of Continued Good Health.






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






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






17. An unintentional mistake committed by an insurance representative; may be covered by E&O insurance.






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






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






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






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






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






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






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






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






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






27. 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.






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






29. Unintentional - up to $1 -000 + legal $; Intentional - $1 -000-5 -000 + legal $; If harmful - misdemeanor + up to 1 yr. prison + up to $10 -000.






30. 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.






31. Identical to Incontestable Clause in Life policy.






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






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






34. Policy provisions must conform to state regulations where policy is sold.






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






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






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






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






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






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






41. 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;






42. 'The inability to perform ANY reasonable occupation based on education - training or experience'.






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






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






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






46. 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.






47. Refund of 50-80% of premium (minus claims paid) every 5-10 yrs. OR age 65; expensive!






48. 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






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






50. Price of insurance per exposure unit.