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. 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.






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






3. Federal law which prohibits companies w/ 15+ employees from decreasing coverage benefits for women affected by pregnancy or childbirth.






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






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






6. Pays death benefit until age 100 or death; builds equity (cash value); may be transferred or sold; generally level premium.






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






8. Revocable - changeable anytime w/ Change of Beneficiary Form; Irrevocable - not changeable w/out beneficiary permission.






9. Term Life policy w/ decreasing death benefit; usually used to secure credit (loan) w/ lender as beneficiary & borrower as Insured.






10. 1: Immediate benefits rec'd w/in 30 days but premium must be paid by lump sum; 2: Deferred - usually until retirement.






11. Dividends are NOT taxable but interest is. Loan interest is NOT tax-deductible. Interest paid by Insurer on retained funds is taxable.






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






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






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






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






16. Treating or mitigating loss exposures through 1: avoidance; 2: retention (deductibles); 3: sharing; 4: reduction; or 5: transfer.






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






18. Upon death - death benefit is paid + the aggregate of premiums paid to date; add-on to Term policy ONLY.






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






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






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






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






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






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






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






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






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






28. A company providing lump sum buyout (50-90% of total) of Life policy; becomes owner & beneficiary & assumes premium payments; usually terminally ill viator.






29. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)






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






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






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






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






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






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






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






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






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






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






40. 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.






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






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






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






45. Representation - oral or written statement made to best of knowledge or belief; Warranty - statement guaranteed/presumed/understood to be true.






46. Policy owner has 90 days from date of loss to submit proof of loss to Insurer; valid claim must be paid immediately upon receipt.






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






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






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






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