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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. Intentional deception; grounds for rescission.






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






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






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






5. 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.






6. 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.






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






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






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






10. 1: mortality probability charge; 2: Insurer's investment return; 3: expenses (admin costs - commissions). 1 - 2 = net; 1 - 2 + 3 = gross.






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






12. 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.






13. Funding mechanism whereby employer & employee share cost of premium. Upon death - benefit is shared between employer & beneficiary.






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






15. Time period preceding each disability during which benefits are not paid; longer elimination periods = cheaper premium.






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






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






18. 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.






19. 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.






20. Temp. coverage for set duration w/ death benefit ONLY (no cash value) - offers largest $ for lowest premium; renewable; convertible.






21. 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.






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






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






24. 1: Immediate benefits rec'd w/in 30 days but premium must be paid by lump sum; 2: Deferred - usually until retirement.






25. War; elective cosmetic surgery; routine dental; work. comp.-covered claims; self-inflicted (intentional); gov't. facility treatment; LTC; private nursing.






26. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






27. An unintentional mistake committed by an insurance representative; may be covered by E&O insurance.






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






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






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






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






32. Provides increased death benefit if death occurs w/in 90 days & as result of accident; relatively INexpensive add-on.






33. Combination of Basic Medical & Major Medical in one policy; Basic pays 1st - then Major Medical w/ corridor deductible.






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






35. Same as WL but w/ Level Term rider; upon death - pays monthly income for FULL term AFTER which pays full death benefit.






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






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






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






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






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






41. Provides hospital insurance automatically @ age 65 (if FICA qualified) @ no fee but may have deductible & co-pay.






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






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






44. Benefits automatically increase annually based on inflationary index (i.e. Consumer Price Index) OR flat rate (5% max.).






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






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






47. 4: Funds retained by Insurer until w/drawn - interest ONLY paid monthly (taxable); 5: Paid-up immediate annuity.






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






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






50. Death benefit determined by Insured's financial goals & needs (minus assets).







Sorry!:) No result found.

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