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






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






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






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






5. Tendency of poorer risks to seek insurance.






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






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






8. 1: Immediate benefits rec'd w/in 30 days but premium must be paid by lump sum; 2: Deferred - usually until retirement.






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






10. Excludes coverage for specific injury/illness either temporarily or permanently in order to eliminate pre-existing condition.






11. Agents - represent Insurer; Brokers - represent themselves & Insured; Solicitors - represent one agent to solicit leads.






12. Receipt whereby coverage incepts ONLY after underwriting approval.






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






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






15. 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.






16. Any person - assoc. - org. - partnership - business trust - LLC - or corp. capable of making an insurance contract.






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






18. 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.






19. Intentional deception; grounds for rescission.






20. Two death benefit options - Option A: death benefit ONLY; Option B: death benefit + cash value; death benefit NOT guaranteed.






21. Process which prevents claim denial as a result of false statement or promise (made by Insurer) - which was relied upon by Insured.






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






23. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






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






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






26. Excludes coverage for suicide during 1st 2 yrs. ONLY but - if it does - all premiums must be returned to beneficiary.






27. Type of partial disability rider - which pays fluctuating % of lost income w/out time limit.






28. Same as WL but can be "paid-up" early by paying larger premium for shorter payment period (i.e. 10 Pay Life - 20 Pay Life).






29. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.






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






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






32. 1: Individual; 2: Joint - multiple annuitants paid until 1st dies; 3: Joint & Survivor - multiple annuitants paid until 1st dies THEN survivors paid but @ reduced $.






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

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34. 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.






35. Waives premium upon disability of Insured until return to work; disability must persist for 6 mths. or longer. Cash value & dividends not affected.






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






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






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






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






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






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






42. Actual/Expressed - written powers; Implied - unwritten but customary practices; Apparent - perceived powers.






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






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






45. Peril is the CAUSE of loss. Hazard is a condition that increases LIKELIHOOD of loss.






46. Req. by CA statute & may provide workers coverage for action-over claims.






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






48. Same as Term Life but provides living benefit (endowment) to policy owner if Insured survives entire term.






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






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