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






2. 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.






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






4. Allows Insured to increase benefit w/out medical exam (subject to age max.) w/ additional premium rate determined @ attained age; must prove income increase.






5. Intentional deception; grounds for rescission.






6. Period of time following any children's survivor benefit & before benefits are provided to employee's widow/widower.






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






8. 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






9. Process whereby a reinsurer reinsures w/ another reinsurer.






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






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






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






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






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






15. Periodic return of premium to policy owners from Mutual (Par) Companies; not guaranteed & not taxable as income; may be used in 6 ways.






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






17. Same as WL but policy owner can adjust death benefit w/ corresponding premium adjustments; mostly obsolete.






18. Prohibited w/ regard to testing for people of same class; test results must remain confidential; coverage may be declined (once discovered).






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


20. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






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






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






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






24. Same as WL but can be "paid-up" early by paying larger premium for shorter payment period (i.e. 10 Pay Life - 20 Pay Life).






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






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. 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.






28. Partially state-funded benefits for low-income people whereby cost of care is shared between state & recipient - based on income.






29. 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.






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






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






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






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






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






35. 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.






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






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






38. 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.






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






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






41. 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.






42. Dividends are NOT taxable but interest is. Loan interest is NOT tax-deductible. Interest paid by Insurer on retained funds is taxable.






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






44. Basic Medical; Major Medical; Comprehensive Major Medical






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






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






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






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






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






50. Mortality is the statistical possibility of death @ each age. Morbidity is the statistical possibility & extent of disability @ each age.