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






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






3. Representation - oral or written statement made to best of knowledge or belief; Warranty - statement guaranteed/presumed/understood to be true.






4. Basic Medical; Major Medical; Comprehensive Major Medical






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






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






7. Disability policy rider covering "the inability to perform some - but not all of your duties"; pays max. 50% of disability benefit for up to 6 mths.






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






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






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






11. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






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






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






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

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15. Potential circumstance that could cause a loss; measured in dollars.






16. Benefits automatically increase annually based on inflationary index (i.e. Consumer Price Index) OR flat rate (5% max.).






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






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






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






20. Revocable - changeable anytime w/ Change of Beneficiary Form; Irrevocable - not changeable w/out beneficiary permission.






21. Written policy terms supersede oral statements made prior to policy issue.






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






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






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






25. 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.






26. 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.






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






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






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






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






31. Federally-funded but state-run program for truly indigent individuals & families providing medical care at Federal clinic.






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






33. Excludes coverage for specific injury/illness either temporarily or permanently in order to eliminate pre-existing condition.






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






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






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






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






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






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






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






41. 1: Straight aka Pure Life - lifetime income but no survivorship refund; 2: Life w/ Period Certain - lifetime income w/ death benefit of monthly annuity for remaining predetermined term. 3: Annuity Certain - monthly income paid for predetermined term






42. Dividends are NOT taxable but interest is. Loan interest is NOT tax-deductible. Interest paid by Insurer on retained funds is taxable.






43. Periodic return of premium to policy owners from Mutual (Par) Companies; not guaranteed & not taxable as income; may be used in 6 ways.






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






45. Federal law which allows health coverage portability when changing jobs - so long as previous coverage was in effect 63+ days; allows some tax deductibility for LTC.






46. Identical to Incontestable Clause in Life policy.






47. Federally-sponsored health care for individuals 65+ &/or w/ certain disabilities; may run concurrent w/ group plan but group plan would act primary - THEN Medicare.






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






49. 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).






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