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






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






3. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)






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






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






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






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






8. 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.






9. Dependent children are covered until 19 or 23 (full-time student only) or until self-sufficient (if handicapped).






10. Treating or mitigating loss exposures through 1: avoidance; 2: retention (deductibles); 3: sharing; 4: reduction; or 5: transfer.






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






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






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






14. 1: mortality probability charge; 2: Insurer's investment return; 3: expenses (admin costs - commissions). 1 - 2 = net; 1 - 2 + 3 = gross.






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






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






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






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






19. 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.






20. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.






21. Same as WL but policy owner can adjust death benefit w/ corresponding premium adjustments; mostly obsolete.






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






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






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






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






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






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






28. Any person - assoc. - org. - partnership - business trust - LLC - or corp. capable of making an insurance contract.






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






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






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






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






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






34. Available for any reason up to full cash value @ fixed (max 8%) OR variable interest rate; loan $ + interest deducted from benefit @ death.






35. 4: Funds retained by Insurer until w/drawn - interest ONLY paid monthly (taxable); 5: Paid-up immediate annuity.






36. No coverage for injuries while: 1: @ voluntary social event; 2: self-inflicted (intentional); 3: under alcohol/drug influence; 4: committing criminal act; 5: aggressor in workplace fight; 6: participating in athletic event (non-pro. athletes) 7: par






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






38. Covers disabilities occurring both "on" AND "off" job; "on" job benefits paid in addition to work. comp. - if applicable (i.e. individual plan).






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






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






41. 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






42. Identical to Incontestable Clause in Life policy.






43. 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.






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






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






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






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






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






49. 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.






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.