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. Federally-funded but state-run program for truly indigent individuals & families providing medical care at Federal clinic.






2. Coverage for catastrophic loss w/ high limits - front end deductible; co-insurance (80/20%); blanket coverage; stop loss max.






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






4. 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.






5. Grows @ fixed min. interest rate but w/ possible higher rate tied to equity index (i.e S&P Equity Index) appreciation; gains shared w/ Insurer.






6. Extreme form of Limited Pay Whole Life whereby entire premium is paid in a single payment.






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






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


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






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






11. 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.






12. Pays death benefit until age 100 or death; builds equity (cash value); may be transferred or sold; generally level premium.






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






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






15. 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.






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






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






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






19. IRS allows tax-free transfer of cash values between 2 LIKE policies (i.e. Life to Life - Annuity to Annuity - or Life to Annuity).






20. Voiding an insurance contract based on fraud - concealment or material misrepresentation; premiums returned; policy treated as never existing.






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






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






23. 1: Cash (tax-free); 2: Apply to future premiums; 3: Retained by Insurer @ interest; 4: Buy Paid-up WL policy add-ons; 5: Pay-up existing policy; 6: Buy 1-yr. Term policy.






24. 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.






25. Receipt whereby coverage incepts ONLY after underwriting approval.






26. Revocable - changeable anytime w/ Change of Beneficiary Form; Irrevocable - not changeable w/out beneficiary permission.






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






28. Primary - if 2 or more - equally shared; Contingent (Secondary) - only if primary dead; Tertiary - only if both primary & secondary dead. If none listed - goes to estate.






29. Agents - represent Insurer; Brokers - represent themselves & Insured; Solicitors - represent one agent to solicit leads.






30. Govt. organization providing health care benefits for dependents of military personnel.






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






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






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






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






35. Price of insurance per exposure unit.






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






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






38. Time period preceding each disability during which benefits are not paid; longer elimination periods = cheaper premium.






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






40. Same as Term Life but provides living benefit (endowment) to policy owner if Insured survives entire term.






41. 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.






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






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






44. Non-qualified Annuity - Non-deductible contributions & tax-deferred growth. At pay-out - tax-free principal but taxable growth.






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






46. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






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






48. 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.






49. If Insured & primary beneficiary die due to same act (w/in 14 days) - primary assumed 1st to die & contingent beneficiary paid death benefit.






50. 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).