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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. 'The inability to perform ANY gainful occupation'.






2. Same as WL but death benefit decreases each yr. w/ dividends paid annually to offset decrease.






3. Federally-funded but state-run program for truly indigent individuals & families providing medical care at Federal clinic.






4. Tendency of poorer risks to seek insurance.






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






6. Intentional deception; grounds for rescission.






7. Preferred or Preferred Smoker; Standard or Standard Smoker; Substandard; Denied.






8. 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






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






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






11. Coverage for catastrophic loss w/ high limits - front end deductible; co-insurance (80/20%); blanket coverage; stop loss max.






12. Mandatory 100% employer-funded coverage for injuries/illnesses occurring "on" job; full-time employees only; exclusive remedy. Provides: 1: unlimited medical benefit; 2: survivor income replacement & funeral ($5 -000 max.); 3: disability benefit @ 66

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






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






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






16. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






17. Non-qualified Annuity - Non-deductible contributions & tax-deferred growth. At pay-out - tax-free principal but taxable growth.






18. 1: Fixed - guaranteed fixed monthly income & fixed interest rate; 2: Variable - unguaranteed; monthly income varies based on stocks/bond returns.






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






20. Policy owner must notify Insurer of loss either in writing - in person or by phone w/in 20 days.






21. 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.






22. Beneficiary has right to leave death benefits / Insurer to protect $ from creditors; interest (taxable) paid on retained funds.






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






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






25. 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.






26. Mathematical law stating the larger # of occurrences - the more predictable the losses; used to calculate premiums.






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






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






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






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






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






32. Death benefit is NOT taxable. Cash value grows tax-deferred but cost basis (base premium) is not taxable - only interest is.






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






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






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






36. Potential circumstance that could cause a loss; measured in dollars.






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






38. Extreme form of Limited Pay Whole Life whereby entire premium is paid in a single payment.






39. Insurer has right to rescind policy & return premium if material misrepresentation in application is found w/in 1st 2 yrs.






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






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






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






43. 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;






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






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






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






47. No-charge annuity w/drawals allowed up to 10% of total - THEN penalized on sliding scale based on # policy yrs.; conditionally waived.






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






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






50. Guaranteed min. interest rate on cash value buildup but possible higher rate if short-term investment returns higher than expected.







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