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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. 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.






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






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






4. Voiding an insurance contract based on fraud - concealment or material misrepresentation; premiums returned; policy treated as never existing.






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






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






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






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






9. Allows for use of HMO/PPO or other private carrier to provide expanded benefits @ additional premium & if enrolled in BOTH Parts A & B.






10. 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).






11. Provides coverage for specific disease(s) - such as cancer or leukemia.






12. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






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






14. Life license + NASD (FINRA) Series 6 or 7.






15. Specialized policy covering diagnostic & preventative dental care; often no deductible; co-insurance; expensive; may be included w/ medical plan.






16. Provides disability income during surgery recovery from life-threatening condition (& sometimes cosmetic surgery).






17. Covers disabilities occurring ONLY "off" job; benefits do not overlap work. comp. (i.e. Group plan).






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






19. Insurance purchased by other Insurer(s) to spread or diversify risk; promotes industry stability.






20. Allows policy owner to w/draw set % of death benefit upon verification of terminal illness w/ expectancy 12-24 mths.; generally tax-free.






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






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






23. An irrevocable IRS classification of a policy (determined by the 7 Pay Test) whereby tax advantages are lost for all distributions ONLY.






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






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






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






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






28. War/Military; Intentional self-inflicted; Aviation (non-commercial); Foreign country; Loss of professional license; Illegal activity; Mental disorders (after 1-2 yrs.).






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






30. 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.






31. 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.






32. 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.






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






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






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






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






37. Same as WL but w/ Decreasing Term rider; upon death - pays monthly income for REMAINING term AFTER which pays full death benefit.






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






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






40. Fraternal - non-profit - members only; Reciprocal - unincorp'd org. - members insure each other; Lloyd's Assoc. - groups sharing risks; Surplus lines - special market risks.






41. 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.






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






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






44. Part of IRS Section 125 cafeteria plan - which allows pre-tax payroll deductions for qualified medical expenses or child/dependent care.






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






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






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






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






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






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






Can you answer 50 questions in 15 minutes?



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