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. 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.






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






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






4. Periodic return of premium to policy owners from Mutual (Par) Companies; not guaranteed & not taxable as income; may be used in 6 ways.






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






6. Underwriting - determines insurability; Marketing/Sales - determines products; Actuarial - determines rates; Claims - investigates/pays claims.






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






8. Annuity distributions prior to age 59 1/2 incur a 10% IRS penalty EXCEPT for death - disability - immediate annuity - or rollover.






9. Price of insurance per exposure unit.






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






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






12. WL policy covering 2 or more Insureds but payable upon death of FIRST Insured - after which policy ends.






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






14. 1: Fixed - guaranteed fixed monthly income & fixed interest rate; 2: Variable - unguaranteed; monthly income varies based on stocks/bond returns.






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






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






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






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






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






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






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






22. Temp. coverage for set duration w/ death benefit ONLY (no cash value) - offers largest $ for lowest premium; renewable; convertible.






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






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






25. 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.






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






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






28. Pays death benefit until age 100 or death; builds equity (cash value); may be transferred or sold; generally level premium.






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






30. 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.






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






32. Pre-existing illness/injury; Waiting period; Elimination period; Probationary period; Benefits - Exclusions - Limitations; Underwriting reqs.






33. Allows policy owner to w/draw set % of death benefit upon verification of terminal illness w/ expectancy 12-24 mths.; generally tax-free.






34. Policy owner has 90 days from date of loss to submit proof of loss to Insurer; valid claim must be paid immediately upon receipt.






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






36. PURELY employer-funded account to reimburse employees for qualified medical expenses not covered by group health plan.






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






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






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






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






41. Both Contributory & Non-contributory Group policies are deductible to employer (not employee) but benefits are taxable. Individual policy premium is NOT deductible but benefit is received tax-free.






42. 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).






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






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






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






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






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






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






49. Prohibited w/ regard to testing for people of same class; test results must remain confidential; coverage may be declined (once discovered).






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