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. Both Contributory & Non-contributory Group policies are deductible to employer (not employee) but benefits are taxable. Individual policy premium is NOT deductible but benefit is received tax-free.






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






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






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






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






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






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






8. Time period preceding each disability during which benefits are not paid; longer elimination periods = cheaper premium.






9. Provides increased death benefit if death occurs w/in 90 days & as result of accident; relatively INexpensive add-on.






10. 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.






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






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






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






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






15. Permanent - not recoverable (spinal cord injury); Temporary - recoverable (temp. illness/injury - broken limb).






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






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


18. IRS allows tax-free transfer of cash values between 2 LIKE policies (i.e. Life to Life - Annuity to Annuity - or Life to Annuity).






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






20. Fraternal - non-profit - members only; Reciprocal - unincorp'd org. - members insure each other; Lloyd's Assoc. - groups sharing risks; Surplus lines - special market risks.






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






22. No coverage for injuries while: 1: @ voluntary social event; 2: self-inflicted (intentional); 3: under alcohol/drug influence; 4: committing criminal act; 5: aggressor in workplace fight; 6: participating in athletic event (non-pro. athletes) 7: par






23. Period of time following any children's survivor benefit & before benefits are provided to employee's widow/widower.






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






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






26. Policy owner has 90 days from date of loss to submit proof of loss to Insurer; valid claim must be paid immediately upon receipt.






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






28. 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).






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






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






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






32. 'The inability to perform ANY reasonable occupation based on education - training or experience'.






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






34. 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.






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






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






37. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






38. Multiple small employers w/ common affiliation (trade assoc. OR Chamber of Commerce) band together to purchase group plan.






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






40. Info already known; Info that should have been known; Waived info; Irrelevant info.






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






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






43. 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.






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






45. 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.






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






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






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






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






50. Facultative - case by case agreements; Automatic/Treaty - automatic acceptance of risk percentage per previous agreement.