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






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






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






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






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






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






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






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






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






10. 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.






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






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






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






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






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






16. Benefits automatically increase annually based on inflationary index (i.e. Consumer Price Index) OR flat rate (5% max.).






17. 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.






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






19. Grows @ fixed interest rate for set term but cash value may adjust to prevailing rate (+ or -) if fully surrendered before term ends; % w/drawal ok.






20. 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.






21. 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






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






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






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






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






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


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






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






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






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






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






32. 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.






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






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






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






36. 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.






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






38. Primary - if 2 or more - equally shared; Contingent (Secondary) - only if primary dead; Tertiary - only if both primary & secondary dead. If none listed - goes to estate.






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






40. A lapsed policy may be reinstated if not longer than 3-5 yrs. - & proof of insurability re-established - & back premiums + interest paid.






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






42. Fraternal - non-profit - members only; Reciprocal - unincorp'd org. - members insure each other; Lloyd's Assoc. - groups sharing risks; Surplus lines - special market risks.






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






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






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






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






47. Receipt whereby coverage incepts ONLY after underwriting approval.






48. Guaranteed min. interest rate on cash value buildup but possible higher rate if short-term investment returns higher than expected.






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






50. Provides for continued operation of business if partner becomes disabled - by allowing other partner(s) to buy disabled partner's interest in business.