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






2. Beneficiary has right to leave death benefits / Insurer to protect $ from creditors; interest (taxable) paid on retained funds.






3. Grows @ fixed min. interest rate but w/ possible higher rate tied to equity index (i.e S&P Equity Index) appreciation; gains shared w/ Insurer.






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






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






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






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






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






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






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






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






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






13. 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.






14. Same as WL but premium low for 1st 5 yrs. - THEN has annual premium increases for set # yrs. - THEN level premium.






15. 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.






16. 1: Fixed - guaranteed fixed monthly income & fixed interest rate; 2: Variable - unguaranteed; monthly income varies based on stocks/bond returns.






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






18. Insured can seek legal action against Insurer for denial of claim only after 60 days and up to 3 yrs. after providing proof of loss.






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






20. 4: Funds retained by Insurer until w/drawn - interest ONLY paid monthly (taxable); 5: Paid-up immediate annuity.






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






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






23. 1: Req. - unless self-employed; 2: 7-day wait for disability benefits; 3: Premium based on ex-mod; 4: Rates approved by CDI; 5: to sell - must satisfy education reqs.






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






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






26. Provides for continued operation of business if partner dies - by allowing surviving partner(s) to buy deceased partner's interest in business.






27. Provides professional services - rehabilitation - training/re-training & related costs to assist Insured in returning to work.






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






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






30. Private sector (Commercial) - provides LA&H - P&C - & LTC; Public sector (Gov't) - provides flood - work. comp. - Medicare/Medicaid - Group Life (SGLI/FEGLI).






31. 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).






32. 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;






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






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






35. 1: parties to contract; 2: insured party or life; 3: insurable interest - if 3rd party; 4: risks insured against; 5: policy period (term); 6: premium & mode.






36. Intentional OR unintentional failure to disclose material underwriting facts that should have been disclosed; grounds for policy rescission.






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






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






39. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)






40. If Insured changes to: more hazardous job - benefits reduced; less hazardous job - premiums reduce.






41. Covers entire family w/ WL for breadwinner & (convertible) Level Term for spouse & children (until certain age).






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






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






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






45. Refund of 50-80% of premium (minus claims paid) every 5-10 yrs. OR age 65; expensive!






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






47. Receipt whereby coverage incepts ONLY after underwriting approval.






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






49. Fixed premium w/ guaranteed min. death benefit that may increase due to higher than expected investment returns.






50. Benefits NOT taxable; employer-paid premiums deductible to employer; individual plans not deductible unless over 7 1/2% of adjusted gross income - then excess deductible.