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






2. 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.






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






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






5. Same as Comprehensive Major Medical but w/ integrated deductible; much more expensive.






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






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






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






9. Covers disabilities occurring ONLY "off" job; benefits do not overlap work. comp. (i.e. Group plan).






10. 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.






11. Benefits NOT taxable; employer-paid premiums deductible to employer; individual plans not deductible unless over 7 1/2% of adjusted gross income - then excess deductible.






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






13. Federal law to protect Federal employees' (& their beneficiaries') pension - group insurance - & welfare benefits.






14. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.






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






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






17. War/Military; Intentional self-inflicted; Aviation (non-commercial); Foreign country; Loss of professional license; Illegal activity; Mental disorders (after 1-2 yrs.).






18. Two death benefit options - Option A: death benefit ONLY; Option B: death benefit + cash value; death benefit NOT guaranteed.






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






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






21. Federal law allows employees/their dependents to continue group benefits w/in 60 days after termination (if employer has 20+ employees); Insured pays premium @ 102% of group cost.






22. 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.






23. War - 2 types; Suicide (1st 2 yrs.); Aviation (non-commercial); Hazardous hobbies; Criminal acts; Alcohol/Drug influenced.






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






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






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






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






28. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






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






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






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






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






33. Financial interest in insured party that must exist @ time of application OR policy issuance. Requires consent (except minors).






34. Policy owner has right to determine mode of premium payment but Insurer can charge admin. fee if not annual.






35. Federal law which prohibits companies w/ 20+ employees from denying work & medical benefits to employees due to age.






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






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






38. 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;






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






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






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






42. Coverage remains in effect for 31 days past premium due date; benefits paid during grace period would be deducted from sum.






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






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






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






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






47. Intentional deception; grounds for rescission.






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






49. Savings account for medical expenses; Tax-deductible contributions; tax-deferred growth; tax-free for qualified use; taxable for non-qualified use.






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






Can you answer 50 questions in 15 minutes?



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