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






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






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






4. Authorized (admitted) - can conduct business in state; Unauthorized (non-admitted) - cannot conduct business in state (w/ one exception).






5. 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.






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






7. 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.






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






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






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






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






12. Grows @ fixed interest rate for set term but cash value may adjust to prevailing rate (+ or -) if fully surrendered before term ends; % w/drawal ok.






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






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






15. Death benefits & premium automatically increase annually based on inflationary index (i.e. Consumer Price Index).






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






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






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






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






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






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






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






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






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






25. Pre-existing illness/injury; Waiting period; Elimination period; Probationary period; Benefits - Exclusions - Limitations; Underwriting reqs.






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






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






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






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






30. WL policy covering 2 or more Insureds but ONLY payable upon death of LAST Insured - generally low premium but high death benefit.






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






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






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






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






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






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






37. Basic Medical; Major Medical; Comprehensive Major Medical






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






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






40. Policy owner must notify Insurer of loss either in writing - in person or by phone w/in 20 days.






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






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






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






44. 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.






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






46. 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






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






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






49. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






50. 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.







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