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






2. A&H - A&S - Sickness only; Medical; Disability; Accident only; Travel accident; LTC; Medicare supplement; AD&D; Dental/Vision/Prescription; Limited.






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






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






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






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






7. Group plan initially self-funded by employer (like SIR); after which - group plan Insurer covers (up to policy limit); requires TPA.






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






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






10. Receipt whereby coverage incepts ONLY after underwriting approval.






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






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






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






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






15. Actual/Expressed - written powers; Implied - unwritten but customary practices; Apparent - perceived powers.






16. 1: Straight aka Pure Life - lifetime income but no survivorship refund; 2: Life w/ Period Certain - lifetime income w/ death benefit of monthly annuity for remaining predetermined term. 3: Annuity Certain - monthly income paid for predetermined term






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






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






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






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






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






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






23. 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.






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






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






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






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






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






29. Allows Term policy conversion to Permanent policy w/out medical exam; must be identical or lower death benefit; based on either attained OR original age.






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






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






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






33. 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.






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






35. If 2 or more family members are injured in the same accident - only payment of a single deductible is required.






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






37. Time extension of benefits based on "qualifying" event. 18 mth. extension if laid off or fired; 36 mth. extension if death - divorce or child leaves home.






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






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






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






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






42. Provides increased death benefit if death occurs w/in 90 days & as result of accident; relatively INexpensive add-on.






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






44. Federal law which prohibits companies w/ 20+ employees from denying work & medical benefits to employees due to age.






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






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






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






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






49. Monthly; Quarterly; Semi-annually; Annually (cheapest due to less admin cost).






50. Provides benefit during Social Security "black-out" period - up to 1 yr.