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. Agreement - Offer & acceptance; Consideration - application + premium; Legal capacity - licensed &/or competent; Legal purpose - public good.






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






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






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






5. An unintentional mistake committed by an insurance representative; may be covered by E&O insurance.






6. Unintentional - up to $1 -000 + legal $; Intentional - $1 -000-5 -000 + legal $; If harmful - misdemeanor + up to 1 yr. prison + up to $10 -000.






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

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8. Agents - represent Insurer; Brokers - represent themselves & Insured; Solicitors - represent one agent to solicit leads.






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






10. Provides medical & personal services for people needing extended assistance w/ Activities of Daily Living (ADL). Other benefits include: assisted living care; respite care; hospice care; adult day care.






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






12. 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.






13. Employer w/ 25 or less employees must offer all eligible employees @ least 2 medical plan options where pre-existing conditions can't be excluded more than 1 yr.






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






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






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






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






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






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






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






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






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






23. Excludes coverage for suicide during 1st 2 yrs. ONLY but - if it does - all premiums must be returned to beneficiary.






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






25. Req. by CA statute & may provide workers coverage for action-over claims.






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






27. Govt. organization providing health care benefits for dependents of military personnel.






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






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






30. 1: mortality probability charge; 2: Insurer's investment return; 3: expenses (admin costs - commissions). 1 - 2 = net; 1 - 2 + 3 = gross.






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






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






33. Price of insurance per exposure unit.






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






35. Federal program financed by payroll taxes provided equally by both employer & employee OR entirely by individual (if self-employed). Provides benefits for: Medicare @ age 65+; retirement; $255 lump sum death benefit; (limited) disability; survivors;






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






37. Tendency of poorer risks to seek insurance.






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






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






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






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






42. Plan A is the CORE benefit & is least expensive; All other plans include Plan A + additional benefits. Plans F & J are high deductible. K & L are both deductible & co-pay plans.






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






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






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






46. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






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






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






49. Type of partial disability rider - which pays fluctuating % of lost income w/out time limit.






50. A lapsed policy may be reinstated if not longer than 3-5 yrs. - & proof of insurability re-established - & back premiums + interest paid.