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






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






3. Allows for Term policy renewal @ higher premium w/out medical exam; guarantees insurability; based on actual/attained age.






4. Taxable income (unlike individual plans); can be either short-term - 13-52 wks. max. or long-term - longer than 52 wks.






5. Potential circumstance that could cause a loss; measured in dollars.






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






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






8. Receipt whereby coverage incepts conditionally upon submission of full consideration and that all underwriting reqs. are met.






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






10. 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.






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






12. Provides supplemental coverage for physician/surgeon fees if enrolled (during enrollment period ONLY) & pay monthly premium w/ deductible and co-insurance.






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






14. 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.






15. Same as Comprehensive Major Medical but w/ integrated deductible; much more expensive.






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






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






18. 4: Funds retained by Insurer until w/drawn - interest ONLY paid monthly (taxable); 5: Paid-up immediate annuity.






19. Savings account for medical expenses; Tax-deductible contributions; tax-deferred growth; tax-free for qualified use; taxable for non-qualified use.






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






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






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






23. 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.






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






25. Death benefit determined by Insured's projected lost earnings potential.






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






27. Grows @ fixed interest rate for set term but cash value may adjust to prevailing rate (+ or -) if fully surrendered before term ends; % w/drawal ok.






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






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






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






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






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






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






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






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






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






37. Covers disabilities occurring both "on" AND "off" job; "on" job benefits paid in addition to work. comp. - if applicable (i.e. individual plan).






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






39. 1: Individual; 2: Joint - multiple annuitants paid until 1st dies; 3: Joint & Survivor - multiple annuitants paid until 1st dies THEN survivors paid but @ reduced $.






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






41. Part A - Inpatient hospital deductibles vary on # of days; limited reserve days; finite benefit; 1st 3 pints blood; Part B - 20% co-payment.






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






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






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






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






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






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






48. Policyholders - Mutual (participating) co. - may pay dividends; Stockholders - Stock (non-participating) co. - no dividends.






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






50. Federal program financed by payroll taxes provided equally by both employer & employee OR entirely by individual (if self-employed). Provides benefits for: Medicare @ age 65+; retirement; $255 lump sum death benefit; (limited) disability; survivors;