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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. Provides usual & customary business expenses (rent - utilities - salaries - mortgage) if owner becomes disabled; premiums deductible - benefits taxable.






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






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






4. 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.






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






6. Written contract to transfer risk of premature death from one party to another; pays stated sum upon death; creates instant estate.






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






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






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






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






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






12. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






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






14. Provides disability income during surgery recovery from life-threatening condition (& sometimes cosmetic surgery).






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






17. War; elective cosmetic surgery; routine dental; work. comp.-covered claims; self-inflicted (intentional); gov't. facility treatment; LTC; private nursing.






18. Federally-sponsored health care for individuals 65+ &/or w/ certain disabilities; may run concurrent w/ group plan but group plan would act primary - THEN Medicare.






19. Death benefit is NOT taxable. Cash value grows tax-deferred but cost basis (base premium) is not taxable - only interest is.






20. 1: Cash (tax-free); 2: Apply to future premiums; 3: Retained by Insurer @ interest; 4: Buy Paid-up WL policy add-ons; 5: Pay-up existing policy; 6: Buy 1-yr. Term policy.






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






22. 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.






23. Policy owner has right to determine mode of premium payment but Insurer can charge admin. fee if not annual.






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






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






26. Life license + NASD (FINRA) Series 6 or 7.






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






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






29. Allows Insured to increase death benefit w/out medical exam (subject to age max.) w/ additional premium rate determined @ attained age.






30. Waives premium on Life policy for minor child until age 21 in event premium payor dies or becomes disabled.

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31. Policy owner must notify Insurer of loss either in writing - in person or by phone w/in 20 days.






32. 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.






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






34. 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.






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






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






37. Accumulation or "pay-in" - contributions & interest earned are tax-deferred; Annuity or "pay-out" - monthly annuity (taxable) paid.






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






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






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. Mathematical law stating the larger # of occurrences - the more predictable the losses; used to calculate premiums.






42. Federal law allows employees/their dependents to continue group benefits w/in 60 days after termination (if employer has 20+ employees); Insured pays premium @ 102% of group cost.






43. Basic Medical; Major Medical; Comprehensive Major Medical






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






45. 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.






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






47. Policy covering minor child; premium fixed but death benefit increases by 5 times @ age 18 or 21.






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






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






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







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