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. Allows Insured to increase death benefit w/out medical exam (subject to age max.) w/ additional premium rate determined @ attained age.






2. An attempt to contain costs by employing various strategies - including wellness programs - preventative testing - outpatient & alternative procedures.






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






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






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






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






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






8. Grows @ fixed min. interest rate but w/ possible higher rate tied to equity index (i.e S&P Equity Index) appreciation; gains shared w/ Insurer.






9. Voiding an insurance contract based on fraud - concealment or material misrepresentation; premiums returned; policy treated as never existing.






10. Mortality is the statistical possibility of death @ each age. Morbidity is the statistical possibility & extent of disability @ each age.






11. No-cost provision that authorizes Insurer to borrow from cash value to pay unpaid premiums after grace period; must ask for @ app. time.






12. Partially state-funded benefits for low-income people whereby cost of care is shared between state & recipient - based on income.






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






14. Responsible adult trustee designated to manage death benefits for minor child beneficiary until adulthood.






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






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






17. Covers disabilities occurring both "on" AND "off" job; "on" job benefits paid in addition to work. comp. - if applicable (i.e. individual plan).






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






19. Term Life policy w/ decreasing death benefit; usually used to secure credit (loan) w/ lender as beneficiary & borrower as Insured.






20. 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.






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






22. Death benefit determined by Insured's projected lost earnings potential.






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






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






25. 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






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






27. Primary - if 2 or more - equally shared; Contingent (Secondary) - only if primary dead; Tertiary - only if both primary & secondary dead. If none listed - goes to estate.






28. Tendency of poorer risks to seek insurance.






29. 'The inability to perform your OWN normal occupation or daily duties'.






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






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






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






33. Mathematical calculation based on overall FICA contributions used to determine retirement/disability/survivorship benefit.






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






35. 1: parties to contract; 2: insured party or life; 3: insurable interest - if 3rd party; 4: risks insured against; 5: policy period (term); 6: premium & mode.






36. Accumulation or "pay-in" - contributions & interest earned are tax-deferred; Annuity or "pay-out" - monthly annuity (taxable) paid.






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






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






39. Treating or mitigating loss exposures through 1: avoidance; 2: retention (deductibles); 3: sharing; 4: reduction; or 5: transfer.






40. Dependent children are covered until 19 or 23 (full-time student only) or until self-sufficient (if handicapped).






41. Price of insurance per exposure unit.






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






43. Annuity distributions prior to age 59 1/2 incur a 10% IRS penalty EXCEPT for death - disability - immediate annuity - or rollover.






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






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






46. Privately-provided or Medicare-provided (if no private carrier) prescription drug plans for qualified individuals but w/ premium - deductible & co-pay.






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






48. Policyholders - Mutual (participating) co. - may pay dividends; Stockholders - Stock (non-participating) co. - no dividends.






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






50. Same as WL but policy owner can adjust death benefit w/ corresponding premium adjustments; mostly obsolete.