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






2. Refund of 50-80% of premium (minus claims paid) every 5-10 yrs. OR age 65; expensive!






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






4. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)






5. Peril is the CAUSE of loss. Hazard is a condition that increases LIKELIHOOD of loss.






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






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






8. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.






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






10. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






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






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






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






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






15. An irrevocable IRS classification of a policy (determined by the 7 Pay Test) whereby tax advantages are lost for all distributions ONLY.






16. Allows policy owner to w/draw set % of death benefit upon verification of terminal illness w/ expectancy 12-24 mths.; generally tax-free.






17. Same as WL but premium low for set # yrs. - THEN premiums vary (+ or -) based on Insurer's investment returns - w/ Gmax.






18. Same as WL but premium low for 1st 5 yrs. - THEN has annual premium increases for set # yrs. - THEN level premium.






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






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






21. Waives premium upon disability of Insured until return to work; disability must persist for 6 mths. or longer. Cash value & dividends not affected.






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






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






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






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






26. Monthly; Quarterly; Semi-annually; Annually (cheapest due to less admin cost).






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






28. Premiums determined by target cash values or death benefit; partial cash value w/drawals allowed; transparent policy w/ unbundled premium.






29. 1: Req. - unless self-employed; 2: 7-day wait for disability benefits; 3: Premium based on ex-mod; 4: Rates approved by CDI; 5: to sell - must satisfy education reqs.






30. Level - fixed death benefit - premium fixed until renewal; Decreasing - death benefit decreases over term - premium fixed until renewal; Increasing - death benefit increases over term - premium fixed until renewal.






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






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






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






34. Pure risk involves chance of loss ONLY (accident or misfortune). Speculative risk involves chance of loss OR gain (gambling - stock investment).






35. Identical to Incontestable Clause in Life policy.






36. Earned premium is $ paid for coverage to date. Unearned premium is $ paid & returnable due to coverage not provided.






37. Policy must be delivered w/ original (or copy of same) application attached.






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






39. 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.






40. 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.






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






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

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






44. Receipt whereby coverage incepts ONLY after underwriting approval.






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






46. Business continuation funding plan whereby each partner agrees to buy Life policies on each other - but not themselves.






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






48. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






49. 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.






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