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






2. 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.






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






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






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






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






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






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






9. Policy owner has 90 days from date of loss to submit proof of loss to Insurer; valid claim must be paid immediately upon receipt.






10. War - 2 types; Suicide (1st 2 yrs.); Aviation (non-commercial); Hazardous hobbies; Criminal acts; Alcohol/Drug influenced.






11. The state in which the contract is accepted or delivered is the state that possesses regulatory jurisdiction over Group plan.






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






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






14. Savings account for medical expenses; Tax-deductible contributions; tax-deferred growth; tax-free for qualified use; taxable for non-qualified use.






15. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)






16. Peril is the CAUSE of loss. Hazard is a condition that increases LIKELIHOOD of loss.






17. 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.






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






19. Unintentional - up to $1 -000 + legal $; Intentional - $1 -000-5 -000 + legal $; If harmful - misdemeanor + up to 1 yr. prison + up to $10 -000.






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






21. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






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






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

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24. 1: parties to contract; 2: insured party or life; 3: insurable interest - if 3rd party; 4: risks insured against; 5: policy period (term); 6: premium & mode.






25. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






26. Treating or mitigating loss exposures through 1: avoidance; 2: retention (deductibles); 3: sharing; 4: reduction; or 5: transfer.






27. 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.






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






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






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






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






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






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






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






35. Beneficiary has right to leave death benefits / Insurer to protect $ from creditors; interest (taxable) paid on retained funds.






36. Tendency of poorer risks to seek insurance.






37. Info already known; Info that should have been known; Waived info; Irrelevant info.






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






39. 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).






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






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






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






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






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






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






46. Federal law to protect Federal employees' (& their beneficiaries') pension - group insurance - & welfare benefits.






47. Actual/Expressed - written powers; Implied - unwritten but customary practices; Apparent - perceived powers.






48. 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.






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






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