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






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






3. Preferred or Preferred Smoker; Standard or Standard Smoker; Substandard; Denied.






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






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






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






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






8. Same as WL but premium low for 1st 3-5 yrs. - THEN has one-time premium increase.






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






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






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






12. Insurer has right to adjust (+ or -) death benefit if age or sex is misstated but normally doesn't void policy.






13. 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.






14. Mathematical calculation based on overall FICA contributions used to determine retirement/disability/survivorship benefit.






15. 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.






16. Time extension of benefits based on "qualifying" event. 18 mth. extension if laid off or fired; 36 mth. extension if death - divorce or child leaves home.






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






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






19. Underwriting - determines insurability; Marketing/Sales - determines products; Actuarial - determines rates; Claims - investigates/pays claims.






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






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






22. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






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






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






25. Mandatory 100% employer-funded coverage for injuries/illnesses occurring "on" job; full-time employees only; exclusive remedy. Provides: 1: unlimited medical benefit; 2: survivor income replacement & funeral ($5 -000 max.); 3: disability benefit @ 66

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26. 1: Individual; 2: Joint - multiple annuitants paid until 1st dies; 3: Joint & Survivor - multiple annuitants paid until 1st dies THEN survivors paid but @ reduced $.






27. Federal law which prohibits companies w/ 20+ employees from denying work & medical benefits to employees due to age.






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






29. War/Military; Intentional self-inflicted; Aviation (non-commercial); Foreign country; Loss of professional license; Illegal activity; Mental disorders (after 1-2 yrs.).






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






31. 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.






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






33. 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.






34. If 2 or more family members are injured in the same accident - only payment of a single deductible is required.






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






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






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






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






39. 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.






40. 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.






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






42. Process whereby a reinsurer reinsures w/ another reinsurer.






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






44. 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.






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






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






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






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






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






50. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.