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 Term policy conversion to Permanent policy w/out medical exam; must be identical or lower death benefit; based on either attained OR original age.






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






3. Summary of coverage including premium & mode of payment - death benefit - beneficiary(ies) - exclusions - & promise to pay.






4. 1: Immediate benefits rec'd w/in 30 days but premium must be paid by lump sum; 2: Deferred - usually until retirement.






5. Policy covering minor child; premium fixed but death benefit increases by 5 times @ age 18 or 21.






6. Identical to Incontestable Clause in Life policy.






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






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


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






10. 'The inability to perform ANY gainful occupation'.






11. Must be delivered in person or by certified - registered or 1st-class mail w/ signature - unless waived by Insurance Commissioner.






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






13. Hybrid of HMO & PPO w/ greater flexibility on choosing specialists outside network w/ benefits still provided but @ higher co-pay.






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






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






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






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






18. Receipt whereby coverage incepts ONLY after underwriting approval.






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






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






21. 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.






22. Upon notice - Insurer must provide Claim Form (Proof of Loss Form) to Insured w/in 15 days.






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






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






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






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






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






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






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






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






31. The state in which the contract is accepted or delivered is the state that possesses regulatory jurisdiction over Group plan.






32. Premiums determined by target cash values or death benefit; partial cash value w/drawals allowed; transparent policy w/ unbundled premium.






33. Prepaid med. benefits for members w/ approved primary care M.D. (independent); low co-pay; non-PPO M.D. can be used at higher cost.






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






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






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






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






38. Same as WL but cash value put in investment vehicles chosen by policy owner (stocks - bonds - munis.); cash value NOT guaranteed.






39. Price of insurance per exposure unit.






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






41. Pre-existing illness/injury; Waiting period; Elimination period; Probationary period; Benefits - Exclusions - Limitations; Underwriting reqs.






42. Disability policy rider covering "the inability to perform some - but not all of your duties"; pays max. 50% of disability benefit for up to 6 mths.






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






44. Process whereby a reinsurer reinsures w/ another reinsurer.






45. 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.






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






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






48. 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.






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






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