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. 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).






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






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






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






5. Same as WL but w/ adjustable death benefit (& corresponding premium) & over-fund option but w/ annually renewable term (ART).






6. Facultative - case by case agreements; Automatic/Treaty - automatic acceptance of risk percentage per previous agreement.






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






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






9. 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

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10. Summary of coverage including premium & mode of payment - death benefit - beneficiary(ies) - exclusions - & promise to pay.






11. Death benefits & premium automatically increase annually based on inflationary index (i.e. Consumer Price Index).






12. 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.






13. Policy covering minor child; premium fixed but death benefit increases by 5 times @ age 18 or 21.






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






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






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






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






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






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






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






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






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






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






24. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.






25. 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.






26. No coverage for injuries while: 1: @ voluntary social event; 2: self-inflicted (intentional); 3: under alcohol/drug influence; 4: committing criminal act; 5: aggressor in workplace fight; 6: participating in athletic event (non-pro. athletes) 7: par






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






28. 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.






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






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






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






32. 'The inability to perform ANY gainful occupation'.






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






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






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






36. 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.






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






38. Commercial (private) companies; HMOs; PPOs; Blue Cross/Blue Shield; Employer-sponsored plans; Government.






39. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






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






41. Same as WL but cash value increases @ current interest rates (not set); premium can start low or high & may change.






42. Premiums determined by target cash values or death benefit; partial cash value w/drawals allowed; transparent policy w/ unbundled premium.






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






44. Policy provisions must conform to state regulations where policy is sold.






45. Underwriting - determines insurability; Marketing/Sales - determines products; Actuarial - determines rates; Claims - investigates/pays claims.






46. 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.






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






48. Prepaid med. benefits for members ONLY w/ approved primary care M.D. (HMO employee); focus on preventative care; low co-pay.






49. 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.






50. Although death benefit is tax-free - it is included in gross estate value so federal &/or state taxes may apply to a portion in excess of fixed federal limit.