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. 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.






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






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






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






5. No-cost provision that authorizes Insurer to borrow from cash value to pay unpaid premiums after grace period; must ask for @ app. time.






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






7. Application submitted w/out premium; no coverage until submission of full consideration & completed Statement of Continued Good Health.






8. Prepaid med. benefits for "subscribers" @ approved facilities; many non-profit; Blue Cross - Hospital stays; Blue Shield - M.D. costs.






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






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






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






12. Provides 24 hr. health coverage both "on" & "off" job - but may cause coverage duplication & coordination challenges.






13. Same as WL but cash value increases @ current interest rates (not set); premium can start low or high & may change.






14. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






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






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






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






18. Summary of coverage including premium & mode of payment - death benefit - beneficiary(ies) - exclusions - & promise to pay.






19. Multiple small employers w/ common affiliation (trade assoc. OR Chamber of Commerce) band together to purchase group plan.






20. 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.






21. Price of insurance per exposure unit.






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






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






24. Policy covering minor child; premium fixed but death benefit increases by 5 times @ age 18 or 21.






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






26. 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.






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






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






29. 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.






30. Tendency of poorer risks to seek insurance.






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






32. Death benefit is NOT taxable. Cash value grows tax-deferred but cost basis (base premium) is not taxable - only interest is.






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






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






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






36. Federal law allows employees/their dependents to continue group benefits w/in 60 days after termination (if employer has 20+ employees); Insured pays premium @ 102% of group cost.






37. 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.






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






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






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






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






42. Domestic - within home state; Foreign - outside home state; Alien - outside home country.






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






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






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






46. No-charge annuity w/drawals allowed up to 10% of total - THEN penalized on sliding scale based on # policy yrs.; conditionally waived.






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






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






49. Permanent disability due to total loss of sight - hearing - speech or use of 2 + limbs; benefits paid even while continuing to work.






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