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






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






3. Earned premium is $ paid for coverage to date. Unearned premium is $ paid & returnable due to coverage not provided.






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






5. 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.






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






7. An attempt to contain costs by employing various strategies - including wellness programs - preventative testing - outpatient & alternative procedures.






8. 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.






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






10. Conditional - coverage is conditional; Personal - parties are people; Good faith - honesty/integrity; Fiduciary - req's financial trust.






11. Refund of 50-80% of premium (minus claims paid) every 5-10 yrs. OR age 65; expensive!






12. Grows @ fixed min. interest rate but w/ possible higher rate tied to equity index (i.e S&P Equity Index) appreciation; gains shared w/ Insurer.






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






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






15. 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






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






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






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






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






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






21. Identical to Incontestable Clause in Life policy.






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






23. Revocable - changeable anytime w/ Change of Beneficiary Form; Irrevocable - not changeable w/out beneficiary permission.






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






25. 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.






26. Physical - slippery floor; Moral - dishonest acts; Morale - carelessness or recklessness.






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






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






29. A company providing lump sum buyout (50-90% of total) of Life policy; becomes owner & beneficiary & assumes premium payments; usually terminally ill viator.






30. Basic Medical; Major Medical; Comprehensive Major Medical






31. 1: Immediate benefits rec'd w/in 30 days but premium must be paid by lump sum; 2: Deferred - usually until retirement.






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






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






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






35. After 2-3 yrs. - Whole Life policy equity builds tax-deferred @ fixed interest rate until it equals death benefit; borrowable but taxable.






36. Mortality is the statistical possibility of death @ each age. Morbidity is the statistical possibility & extent of disability @ each age.






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






38. 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.






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






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






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






42. Receipt whereby coverage incepts ONLY after underwriting approval.






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






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






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






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






47. Part A - Inpatient hospital deductibles vary on # of days; limited reserve days; finite benefit; 1st 3 pints blood; Part B - 20% co-payment.






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






49. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)






50. If 2 or more family members are injured in the same accident - only payment of a single deductible is required.