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






2. Extreme form of Limited Pay Whole Life whereby entire premium is paid in a single payment.






3. IRS allows tax-free transfer of cash values between 2 LIKE policies (i.e. Life to Life - Annuity to Annuity - or Life to Annuity).






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






5. To "make whole again" w/out benefit or detriment; neither monetary profit nor loss.






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






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






8. Price of insurance per exposure unit.






9. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






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






11. Privately-sold policies to provide benefits not covered by Medicare; divided into 12 plans listed alphabetically A - L; 30-day free look; guaranteed renewable.






12. Earned premium is $ paid for coverage to date. Unearned premium is $ paid & returnable due to coverage not provided.






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






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






15. Time period preceding each disability during which benefits are not paid; longer elimination periods = cheaper premium.






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






17. 1: Individual; 2: Joint - multiple annuitants paid until 1st dies; 3: Joint & Survivor - multiple annuitants paid until 1st dies THEN survivors paid but @ reduced $.






18. Written contract to transfer risk of premature death from one party to another; pays stated sum upon death; creates instant estate.






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






20. Federally-sponsored health care for individuals 65+ &/or w/ certain disabilities; may run concurrent w/ group plan but group plan would act primary - THEN Medicare.






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






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






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






24. Upon death - death benefit is paid + the aggregate of cash value accumulated to date; add-on to WL policy ONLY.






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






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






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






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






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






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






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






32. If Insured & primary beneficiary die due to same act (w/in 14 days) - primary assumed 1st to die & contingent beneficiary paid death benefit.






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






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






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






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






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






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






39. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






40. 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.






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






42. Waives premium on Life policy for minor child until age 21 in event premium payor dies or becomes disabled.

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43. 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.






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






45. 1: mortality probability charge; 2: Insurer's investment return; 3: expenses (admin costs - commissions). 1 - 2 = net; 1 - 2 + 3 = gross.






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






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






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






49. Although death benefit is tax-free - it is included in gross estate value so federal &/or state taxes may apply to a portion in excess of fixed federal limit.






50. 'The inability to perform ANY reasonable occupation based on education - training or experience'.