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






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






3. Palliative - treatment to manage pain; Curative - treatment to cure illness/condition.






4. 1: Immediate benefits rec'd w/in 30 days but premium must be paid by lump sum; 2: Deferred - usually until retirement.






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






6. 4: Funds retained by Insurer until w/drawn - interest ONLY paid monthly (taxable); 5: Paid-up immediate annuity.






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






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






9. Intentional deception; grounds for rescission.






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






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






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






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






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






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






16. Upon death - death benefit is paid + the aggregate of premiums paid to date; add-on to Term policy ONLY.






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






18. Insurer has right to adjust (+ or -) death benefit if age or sex is misstated but normally doesn't void policy.






19. 1: Individual; 2: Joint - multiple annuitants paid until 1st dies; 3: Joint & Survivor - multiple annuitants paid until 1st dies THEN survivors paid but @ reduced $.






20. Same as WL but premium low for 1st 3-5 yrs. - THEN has one-time premium increase.






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






22. WL policy covering 2 or more Insureds but ONLY payable upon death of LAST Insured - generally low premium but high death benefit.






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






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






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






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






27. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






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






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






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






31. 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.






32. 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).






33. Waives premium upon disability of Insured until return to work; disability must persist for 90 days or longer; 1st 90 day premiums refunded after 90 days.






34. Same as WL but death benefit increases annually - linked to Consumer Price Index; premium increases annually OR is set high from start.






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






36. 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;






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






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






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






40. Available for any reason up to full cash value @ fixed (max 8%) OR variable interest rate; loan $ + interest deducted from benefit @ death.






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






42. 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

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


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






44. 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.






45. Provides for continued operation of business if partner becomes disabled - by allowing other partner(s) to buy disabled partner's interest in business.






46. Dividends are NOT taxable but interest is. Loan interest is NOT tax-deductible. Interest paid by Insurer on retained funds is taxable.






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






48. 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.






49. 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.






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