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. Provides 24 hr. health coverage both "on" & "off" job - but may cause coverage duplication & coordination challenges.






2. War; elective cosmetic surgery; routine dental; work. comp.-covered claims; self-inflicted (intentional); gov't. facility treatment; LTC; private nursing.






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






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






5. 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;






6. Allows Insured to increase benefit w/out medical exam (subject to age max.) w/ additional premium rate determined @ attained age; must prove income increase.






7. 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.






8. Pure risk involves chance of loss ONLY (accident or misfortune). Speculative risk involves chance of loss OR gain (gambling - stock investment).






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






10. Must be delivered in person or by certified - registered or 1st-class mail w/ signature - unless waived by Insurance Commissioner.






11. Death benefit is NOT taxable. Cash value grows tax-deferred but cost basis (base premium) is not taxable - only interest is.






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






13. Policy must be delivered w/ original (or copy of same) application attached.






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






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






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






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






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






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






20. 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.






21. Allows Insured to increase death benefit w/out medical exam (subject to age max.) w/ additional premium rate determined @ attained age.






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


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






24. 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.






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






26. Type of partial disability rider - which pays fluctuating % of lost income w/out time limit.






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






28. Provides hospital insurance automatically @ age 65 (if FICA qualified) @ no fee but may have deductible & co-pay.






29. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






30. War/Military; Intentional self-inflicted; Aviation (non-commercial); Foreign country; Loss of professional license; Illegal activity; Mental disorders (after 1-2 yrs.).






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






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






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






34. Earned premium is $ paid for coverage to date. Unearned premium is $ paid & returnable due to coverage not provided.






35. Allows for use of HMO/PPO or other private carrier to provide expanded benefits @ additional premium & if enrolled in BOTH Parts A & B.






36. 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.






37. 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






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






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






40. Receipt whereby coverage incepts ONLY after underwriting approval.






41. Experience - rates impacted by actual prior claim experience of actual group; Community - identical rates used for entire community - regardless of experience.






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






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






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






45. Federal law to protect Federal employees' (& their beneficiaries') pension - group insurance - & welfare benefits.






46. 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


47. Preferred or Preferred Smoker; Standard or Standard Smoker; Substandard; Denied.






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






49. Partially state-funded benefits for low-income people whereby cost of care is shared between state & recipient - based on income.






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