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






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






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






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






5. Basic Medical; Major Medical; Comprehensive Major Medical






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






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






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






9. Summary of coverage including premium & mode of payment - death benefit - beneficiary(ies) - exclusions - & promise to pay.






10. Life license + NASD (FINRA) Series 6 or 7.






11. 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).






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






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






14. Receipt whereby coverage incepts immediately upon submission of full consideration - unless declined & premium refunded.






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






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






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






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






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






20. Policy provisions must conform to state regulations where policy is sold.






21. Insurer has right to rescind policy & return premium if material misrepresentation in application is found w/in 1st 2 yrs.






22. Non-qualified Annuity - Non-deductible contributions & tax-deferred growth. At pay-out - tax-free principal but taxable growth.






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






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






25. Accumulation or "pay-in" - contributions & interest earned are tax-deferred; Annuity or "pay-out" - monthly annuity (taxable) paid.






26. 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.






27. Taxable income (unlike individual plans); can be either short-term - 13-52 wks. max. or long-term - longer than 52 wks.






28. Reappearance of disability w/in 6 mth. period after "recovery" from same disability is considered recurrence - not new disability.






29. Same as WL but cash value increases @ current interest rates (not set); premium can start low or high & may change.






30. Grows @ fixed min. interest rate but w/ possible higher rate tied to equity index (i.e S&P Equity Index) appreciation; gains shared w/ Insurer.






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






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






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






34. Allows for Term policy renewal @ higher premium w/out medical exam; guarantees insurability; based on actual/attained age.






35. Compensates business for loss due to death or disability of key employee; premiums not deductible but benefits tax-free.






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






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






38. Expands individual WL policy to include Term Life for dependents (spouse - children - etc.).






39. 'The inability to perform ANY gainful occupation'.






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






41. Although death benefit is tax-free - it is included in gross estate value so federal &/or state taxes may apply to a portion in excess of fixed federal limit.






42. Permanent disability due to total loss of sight - hearing - speech or use of 2 + limbs; benefits paid even while continuing to work.






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






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






45. 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.






46. Term Life policy w/ decreasing death benefit; usually used to secure credit (loan) w/ lender as beneficiary & borrower as Insured.






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






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






49. Prevents overinsuring in order to profit from disability by coordinating benefits between Insurers.






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