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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. Reappearance of disability w/in 6 mth. period after "recovery" from same disability is considered recurrence - not new disability.






2. 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.






3. Intentional deception; grounds for rescission.






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






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






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






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






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






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






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






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






12. An attempt to contain costs by employing various strategies - including wellness programs - preventative testing - outpatient & alternative procedures.






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






14. Allows policy owner to w/draw set % of death benefit upon verification of terminal illness w/ expectancy 12-24 mths.; generally tax-free.






15. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.






16. 1: mortality probability charge; 2: Insurer's investment return; 3: expenses (admin costs - commissions). 1 - 2 = net; 1 - 2 + 3 = gross.






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






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






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






20. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






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






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






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






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






25. 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.






26. Insurer has right to adjust (+ or -) death benefit if age or sex is misstated but normally doesn't void policy.






27. Authorized (admitted) - can conduct business in state; Unauthorized (non-admitted) - cannot conduct business in state (w/ one exception).






28. 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.






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






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






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






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






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






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






35. Accumulation or "pay-in" - contributions & interest earned are tax-deferred; Annuity or "pay-out" - monthly annuity (taxable) paid.






36. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






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






38. 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






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






40. Fraternal - non-profit - members only; Reciprocal - unincorp'd org. - members insure each other; Lloyd's Assoc. - groups sharing risks; Surplus lines - special market risks.






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






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






43. 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.






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






45. Beneficiary has right to leave death benefits / Insurer to protect $ from creditors; interest (taxable) paid on retained funds.






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






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






48. Qualified Annuity - Tax-deductible contributions & tax-deferred growth but fully taxable w/drawals.






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






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







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