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






2. Experience - rates impacted by actual prior claim experience of actual group; Community - identical rates used for entire community - regardless of experience.






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






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






5. 1: Straight aka Pure Life - lifetime income but no survivorship refund; 2: Life w/ Period Certain - lifetime income w/ death benefit of monthly annuity for remaining predetermined term. 3: Annuity Certain - monthly income paid for predetermined term






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






7. Basic Medical; Major Medical; Comprehensive Major Medical






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






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






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






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






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






13. A&H - A&S - Sickness only; Medical; Disability; Accident only; Travel accident; LTC; Medicare supplement; AD&D; Dental/Vision/Prescription; Limited.






14. Group plan initially self-funded by employer (like SIR); after which - group plan Insurer covers (up to policy limit); requires TPA.






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






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






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






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






19. Intentional deception; grounds for rescission.






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






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






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






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






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






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






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






27. Provides for continued operation of business if partner becomes disabled - by allowing other partner(s) to buy disabled partner's interest in business.






28. 1: Cash (tax-free); 2: Apply to future premiums; 3: Retained by Insurer @ interest; 4: Buy Paid-up WL policy add-ons; 5: Pay-up existing policy; 6: Buy 1-yr. Term policy.






29. To "make whole again" w/out benefit or detriment; neither monetary profit nor loss.






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






31. 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.






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






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






34. 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.






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






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






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






38. Palliative - treatment to manage pain; Curative - treatment to cure illness/condition.






39. Written contract to transfer risk of premature death from one party to another; pays stated sum upon death; creates instant estate.






40. Available for any reason up to full cash value @ fixed (max 8%) OR variable interest rate; loan $ + interest deducted from benefit @ death.






41. 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.






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






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






44. Conditional - coverage is conditional; Personal - parties are people; Good faith - honesty/integrity; Fiduciary - req's financial trust.






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






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






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






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






49. Facultative - case by case agreements; Automatic/Treaty - automatic acceptance of risk percentage per previous agreement.






50. Although death benefit is tax-free - it is included in gross estate value so federal &/or state taxes may apply to a portion in excess of fixed federal limit.