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






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






3. 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






4. Covers disabilities occurring ONLY "off" job; benefits do not overlap work. comp. (i.e. Group plan).






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






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






7. Info already known; Info that should have been known; Waived info; Irrelevant info.






8. Federal law which allows health coverage portability when changing jobs - so long as previous coverage was in effect 63+ days; allows some tax deductibility for LTC.






9. Intentional deception; grounds for rescission.






10. Same as WL but premium low for 1st 5 yrs. - THEN has annual premium increases for set # yrs. - THEN level premium.






11. Written contract to transfer risk of premature death from one party to another; pays stated sum upon death; creates instant estate.






12. Receipt whereby coverage incepts conditionally upon submission of full consideration and that all underwriting reqs. are met.






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






14. Provides usual & customary business expenses (rent - utilities - salaries - mortgage) if owner becomes disabled; premiums deductible - benefits taxable.






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






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






17. 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.






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






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






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






21. 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.






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






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






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






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






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






27. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)






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






29. 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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30. Time period preceding each disability during which benefits are not paid; longer elimination periods = cheaper premium.






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






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






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






34. Privately-sold policies to provide benefits not covered by Medicare; divided into 12 plans listed alphabetically A - L; 30-day free look; guaranteed renewable.






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






36. Private sector (Commercial) - provides LA&H - P&C - & LTC; Public sector (Gov't) - provides flood - work. comp. - Medicare/Medicaid - Group Life (SGLI/FEGLI).






37. A&H - A&S - Sickness only; Medical; Disability; Accident only; Travel accident; LTC; Medicare supplement; AD&D; Dental/Vision/Prescription; Limited.






38. Same as WL but w/ Level Term rider; upon death - pays monthly income for FULL term AFTER which pays full death benefit.






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






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






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






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






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






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






46. 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






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






48. Unintentional - up to $1 -000 + legal $; Intentional - $1 -000-5 -000 + legal $; If harmful - misdemeanor + up to 1 yr. prison + up to $10 -000.






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






50. 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.