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. An irrevocable IRS classification of a policy (determined by the 7 Pay Test) whereby tax advantages are lost for all distributions ONLY.






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






3. Provides hospital insurance automatically @ age 65 (if FICA qualified) @ no fee but may have deductible & co-pay.






4. 'The inability to perform ANY reasonable occupation based on education - training or experience'.






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






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






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






8. Any person - assoc. - org. - partnership - business trust - LLC - or corp. capable of making an insurance contract.






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






10. Term Life policy w/ decreasing death benefit; usually used to secure credit (loan) w/ lender as beneficiary & borrower as Insured.






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






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






13. Period of time following any children's survivor benefit & before benefits are provided to employee's widow/widower.






14. Prepaid med. benefits for members ONLY w/ approved primary care M.D. (HMO employee); focus on preventative care; low co-pay.






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






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






17. Same as Comprehensive Major Medical but w/ integrated deductible; much more expensive.






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






19. Policyholders - Mutual (participating) co. - may pay dividends; Stockholders - Stock (non-participating) co. - no dividends.






20. Prevents overinsuring in order to profit from disability by coordinating benefits between Insurers.






21. Reappearance of disability w/in 6 mth. period after "recovery" from same disability is considered recurrence - not new disability.






22. A lapsed policy may be reinstated if not longer than 3-5 yrs. - & proof of insurability re-established - & back premiums + interest paid.






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






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






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






26. Waives premium upon disability of Insured until return to work; disability must persist for 6 mths. or longer. Cash value & dividends not affected.






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






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






29. Representation - oral or written statement made to best of knowledge or belief; Warranty - statement guaranteed/presumed/understood to be true.






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






31. Written contract that provides INCOME @ high interest rate for fixed period OR for annuitant's lifetime w/ possible death benefit.






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






33. 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






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






35. 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;






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






37. 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.






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






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






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






41. Provides 24 hr. health coverage both "on" & "off" job - but may cause coverage duplication & coordination challenges.






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






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






44. 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.






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






46. Dependent children are covered until 19 or 23 (full-time student only) or until self-sufficient (if handicapped).






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






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






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






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