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






2. Basic Medical; Major Medical; Comprehensive Major Medical






3. Insurance purchased by other Insurer(s) to spread or diversify risk; promotes industry stability.






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






5. 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.






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






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






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






9. Term Life policy w/ decreasing death benefit; usually used to secure credit (loan) w/ lender as beneficiary & borrower as Insured.






10. Period of time following any children's survivor benefit & before benefits are provided to employee's widow/widower.






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






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






13. Domestic - within home state; Foreign - outside home state; Alien - outside home country.






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






15. Provides professional services - rehabilitation - training/re-training & related costs to assist Insured in returning to work.






16. Same as WL but death benefit decreases each yr. w/ dividends paid annually to offset decrease.






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






18. Benefits NOT taxable; employer-paid premiums deductible to employer; individual plans not deductible unless over 7 1/2% of adjusted gross income - then excess deductible.






19. 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.






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






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






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






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






24. Financial interest in insured party that must exist @ time of application OR policy issuance. Requires consent (except minors).






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






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






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






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






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






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






31. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






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






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






34. Provides disability income during surgery recovery from life-threatening condition (& sometimes cosmetic surgery).






35. 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.






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






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






38. Excludes coverage for specific injury/illness either temporarily or permanently in order to eliminate pre-existing condition.






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






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






41. Federal law which prohibits companies w/ 15+ employees from decreasing coverage benefits for women affected by pregnancy or childbirth.






42. 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.






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






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






45. Upon death - death benefit is paid + the aggregate of cash value accumulated to date; add-on to WL policy ONLY.






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






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






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






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






50. Representation - oral or written statement made to best of knowledge or belief; Warranty - statement guaranteed/presumed/understood to be true.