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. Provides hospital insurance automatically @ age 65 (if FICA qualified) @ no fee but may have deductible & co-pay.






2. Available for any reason up to full cash value @ fixed (max 8%) OR variable interest rate; loan $ + interest deducted from benefit @ death.






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

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4. After 2-3 yrs. - Whole Life policy equity builds tax-deferred @ fixed interest rate until it equals death benefit; borrowable but taxable.






5. Pays death benefit until age 100 or death; builds equity (cash value); may be transferred or sold; generally level premium.






6. If Insured & primary beneficiary die due to same act (w/in 14 days) - primary assumed 1st to die & contingent beneficiary paid death benefit.






7. 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.






8. Provides % of monthly income benefit if Insured becomes disabled due to illness or accident.






9. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)






10. Covers entire family w/ WL for breadwinner & (convertible) Level Term for spouse & children (until certain age).






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






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






13. Generally 10 days after policy delivery to cancel policy w/ full refund - except 30 days for seniors or for replacement policies.






14. Death benefit determined by Insured's financial goals & needs (minus assets).






15. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






16. Tendency of poorer risks to seek insurance.






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






18. Provides benefit during Social Security "black-out" period - up to 1 yr.






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






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






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






22. A company providing lump sum buyout (50-90% of total) of Life policy; becomes owner & beneficiary & assumes premium payments; usually terminally ill viator.






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






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






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






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






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






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






29. 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.






30. 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.






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






32. Funding mechanism whereby employer & employee share cost of premium. Upon death - benefit is shared between employer & beneficiary.






33. Agents - represent Insurer; Brokers - represent themselves & Insured; Solicitors - represent one agent to solicit leads.






34. 1: Fixed - guaranteed fixed monthly income & fixed interest rate; 2: Variable - unguaranteed; monthly income varies based on stocks/bond returns.






35. Part A - Inpatient hospital deductibles vary on # of days; limited reserve days; finite benefit; 1st 3 pints blood; Part B - 20% co-payment.






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






37. To "make whole again" w/out benefit or detriment; neither monetary profit nor loss.






38. Must be delivered in person or by certified - registered or 1st-class mail w/ signature - unless waived by Insurance Commissioner.






39. Agreement - Offer & acceptance; Consideration - application + premium; Legal capacity - licensed &/or competent; Legal purpose - public good.






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






41. Qualified Annuity - Tax-deductible contributions & tax-deferred growth but fully taxable w/drawals.






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






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






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






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






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






47. 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.






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






49. Identical to Incontestable Clause in Life policy.






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