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. 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.






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






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






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






5. Financial interest in insured party that must exist @ time of application OR policy issuance. Requires consent (except minors).






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






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






8. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






9. Excludes coverage for suicide during 1st 2 yrs. ONLY but - if it does - all premiums must be returned to beneficiary.






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






11. Experience - rates impacted by actual prior claim experience of actual group; Community - identical rates used for entire community - regardless of experience.






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






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






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






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






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






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






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






19. Group plan initially self-funded by employer (like SIR); after which - group plan Insurer covers (up to policy limit); requires TPA.






20. Same as WL but premium low for set # yrs. - THEN premiums vary (+ or -) based on Insurer's investment returns - w/ Gmax.






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






22. Receipt whereby coverage incepts ONLY after underwriting approval.






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






24. 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.






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






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






27. Policy provisions must conform to state regulations where policy is sold.






28. Hybrid of HMO & PPO w/ greater flexibility on choosing specialists outside network w/ benefits still provided but @ higher co-pay.






29. Fixed premium w/ guaranteed min. death benefit that may increase due to higher than expected investment returns.






30. 4: Funds retained by Insurer until w/drawn - interest ONLY paid monthly (taxable); 5: Paid-up immediate annuity.






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






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






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






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






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






36. 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.






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






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






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






40. Govt. organization providing health care benefits for dependents of military personnel.






41. Type of partial disability rider - which pays fluctuating % of lost income w/out time limit.






42. 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.






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






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






45. 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).






46. 1: Fixed - guaranteed fixed monthly income & fixed interest rate; 2: Variable - unguaranteed; monthly income varies based on stocks/bond returns.






47. 'The inability to perform your OWN normal occupation or daily duties'.






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






49. Intentional OR unintentional failure to disclose material underwriting facts that should have been disclosed; grounds for policy rescission.






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