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






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






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






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






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






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






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






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






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






11. Refund of 50-80% of premium (minus claims paid) every 5-10 yrs. OR age 65; expensive!






12. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






13. Upon death - death benefit is paid + the aggregate of cash value accumulated to date; add-on to WL policy ONLY.






14. Provides coverage for specific disease(s) - such as cancer or leukemia.






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






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






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






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






19. Same as WL but w/ Level Term rider; upon death - pays monthly income for FULL term AFTER which pays full death benefit.






20. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






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






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






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






24. Provides for continued operation of business if partner becomes disabled - by allowing other partner(s) to buy disabled partner's interest in business.






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






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






27. Insurance purchased by other Insurer(s) to spread or diversify risk; promotes industry stability.






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






29. 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.






30. 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.






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






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






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






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






35. Specialized policy covering diagnostic & preventative dental care; often no deductible; co-insurance; expensive; may be included w/ medical plan.






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






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






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






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






40. Allows Term policy conversion to Permanent policy w/out medical exam; must be identical or lower death benefit; based on either attained OR original age.






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






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






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






45. Same as WL but policy owner can adjust death benefit w/ corresponding premium adjustments; mostly obsolete.






46. Same as Term Life but provides living benefit (endowment) to policy owner if Insured survives entire term.






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






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






49. Pure risk involves chance of loss ONLY (accident or misfortune). Speculative risk involves chance of loss OR gain (gambling - stock investment).






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