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






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






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






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






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






6. War - 2 types; Suicide (1st 2 yrs.); Aviation (non-commercial); Hazardous hobbies; Criminal acts; Alcohol/Drug influenced.






7. Covers disabilities occurring ONLY "off" job; benefits do not overlap work. comp. (i.e. Group plan).






8. Federally-sponsored health care for individuals 65+ &/or w/ certain disabilities; may run concurrent w/ group plan but group plan would act primary - THEN Medicare.






9. 1: Immediate benefits rec'd w/in 30 days but premium must be paid by lump sum; 2: Deferred - usually until retirement.






10. Privately-sold policies to provide benefits not covered by Medicare; divided into 12 plans listed alphabetically A - L; 30-day free look; guaranteed renewable.






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






12. 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.






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






14. Same as WL but premium low for set # yrs. - THEN premiums vary (+ or -) based on Insurer's investment returns - w/ Gmax.






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






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






17. Domestic - within home state; Foreign - outside home state; Alien - outside home country.






18. Mathematical calculation based on overall FICA contributions used to determine retirement/disability/survivorship benefit.






19. Provides for continued operation of business if partner becomes disabled - by allowing other partner(s) to buy disabled partner's interest in business.






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






21. Insurer has right to rescind policy & return premium if material misrepresentation in application is found w/in 1st 2 yrs.






22. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.






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






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






25. If 2 or more family members are injured in the same accident - only payment of a single deductible is required.






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






27. 4: Funds retained by Insurer until w/drawn - interest ONLY paid monthly (taxable); 5: Paid-up immediate annuity.






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






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






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






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






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






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






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






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






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






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






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






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






40. Specialized policy covering diagnostic & preventative dental care; often no deductible; co-insurance; expensive; may be included w/ medical plan.






41. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






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






43. 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).






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






45. Same as WL but death benefit increases annually - linked to Consumer Price Index; premium increases annually OR is set high from start.






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






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






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. 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.






50. Waives premium upon disability of Insured until return to work; disability must persist for 6 mths. or longer. Cash value & dividends not affected.