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. Generally 10 days after policy delivery to cancel policy w/ full refund - except 30 days for seniors or for replacement policies.






2. Excludes coverage for suicide during 1st 2 yrs. ONLY but - if it does - all premiums must be returned to beneficiary.






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






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






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






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






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






8. Combination of Basic Medical & Major Medical in one policy; Basic pays 1st - then Major Medical w/ corridor deductible.






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






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






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






12. Part of IRS Section 125 cafeteria plan - which allows pre-tax payroll deductions for qualified medical expenses or child/dependent care.






13. Provides supplemental coverage for physician/surgeon fees if enrolled (during enrollment period ONLY) & pay monthly premium w/ deductible and co-insurance.






14. Privately-provided or Medicare-provided (if no private carrier) prescription drug plans for qualified individuals but w/ premium - deductible & co-pay.






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






16. 1: Req. - unless self-employed; 2: 7-day wait for disability benefits; 3: Premium based on ex-mod; 4: Rates approved by CDI; 5: to sell - must satisfy education reqs.






17. Coverage remains in effect for 31 days past premium due date; benefits paid during grace period would be deducted from sum.






18. No deductible coverage for: daily room/board; ancillary costs; surgeon &/or physician expense (for added premium).






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






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






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






22. Provides coverage for specific disease(s) - such as cancer or leukemia.






23. 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.






24. Written policy terms supersede oral statements made prior to policy issue.






25. Unilateral - Insurer provides contract; Adhesion - parties must adhere to terms; Aleatory - benefits may not inure equally.






26. An unintentional mistake committed by an insurance representative; may be covered by E&O insurance.






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






28. To "make whole again" w/out benefit or detriment; neither monetary profit nor loss.






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






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






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






32. Req. by CA statute & may provide workers coverage for action-over claims.






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






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






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






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






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






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






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






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






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






42. Provides benefit during Social Security "black-out" period - up to 1 yr.






43. 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.






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






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






46. Price of insurance per exposure unit.






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






48. 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.






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






50. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.