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. Benefits automatically increase annually based on inflationary index (i.e. Consumer Price Index) OR flat rate (5% max.).






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






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






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






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






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






7. If Insured changes to: more hazardous job - benefits reduced; less hazardous job - premiums reduce.






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






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






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






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






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






13. 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.






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






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






16. An unintentional mistake committed by an insurance representative; may be covered by E&O insurance.






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






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






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






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






21. Receipt whereby coverage incepts ONLY after underwriting approval.






22. 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.






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






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






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






26. 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.






27. Monthly; Quarterly; Semi-annually; Annually (cheapest due to less admin cost).






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






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






30. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)






31. Taxable income (unlike individual plans); can be either short-term - 13-52 wks. max. or long-term - longer than 52 wks.






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






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






34. Provides for continued operation of business if partner dies - by allowing surviving partner(s) to buy deceased partner's interest in business.






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






36. Receipt whereby coverage incepts immediately upon submission of full consideration - unless declined & premium refunded.






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






38. Fraternal - non-profit - members only; Reciprocal - unincorp'd org. - members insure each other; Lloyd's Assoc. - groups sharing risks; Surplus lines - special market risks.






39. IRS allows tax-free transfer of cash values between 2 LIKE policies (i.e. Life to Life - Annuity to Annuity - or Life to Annuity).






40. No-cost provision that authorizes Insurer to borrow from cash value to pay unpaid premiums after grace period; must ask for @ app. time.






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






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






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






44. 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;






45. Prepaid med. benefits for members w/ approved primary care M.D. (independent); low co-pay; non-PPO M.D. can be used at higher cost.






46. Provides medical & personal services for people needing extended assistance w/ Activities of Daily Living (ADL). Other benefits include: assisted living care; respite care; hospice care; adult day care.






47. Insurer has right to rescind policy & return premium if material misrepresentation in application is found w/in 1st 2 yrs.






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






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






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