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. Mandatory 100% employer-funded coverage for injuries/illnesses occurring "on" job; full-time employees only; exclusive remedy. Provides: 1: unlimited medical benefit; 2: survivor income replacement & funeral ($5 -000 max.); 3: disability benefit @ 66






2. Business continuation funding plan whereby each partner agrees to buy Life policies on each other - but not themselves.






3. Expands individual WL policy to include Term Life for dependents (spouse - children - etc.).






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






5. Benefits automatically increase annually based on inflationary index (i.e. Consumer Price Index) OR flat rate (5% max.).






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






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






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






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






10. Provides medical & personal services for people needing extended assistance w/ Activities of Daily Living (ADL). Other benefits include: assisted living care; respite care; hospice care; adult day care.






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






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






13. Life license + NASD (FINRA) Series 6 or 7.






14. 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.






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






16. Federal law which prohibits companies w/ 20+ employees from denying work & medical benefits to employees due to age.






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






18. 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).






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






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






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






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






23. Provides % of monthly income benefit if Insured becomes disabled due to illness or accident.






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






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






26. Price of insurance per exposure unit.






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






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






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






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






31. Potential circumstance that could cause a loss; measured in dollars.






32. 1: Fixed - guaranteed fixed monthly income & fixed interest rate; 2: Variable - unguaranteed; monthly income varies based on stocks/bond returns.






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






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






35. Treating or mitigating loss exposures through 1: avoidance; 2: retention (deductibles); 3: sharing; 4: reduction; or 5: transfer.






36. Same as Comprehensive Major Medical but w/ integrated deductible; much more expensive.






37. Same as WL but w/ Decreasing Term rider; upon death - pays monthly income for REMAINING term AFTER which pays full death benefit.






38. Mathematical law stating the larger # of occurrences - the more predictable the losses; used to calculate premiums.






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






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






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






42. 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.






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






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






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






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






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






48. 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.






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






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