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. Periodic return of premium to policy owners from Mutual (Par) Companies; not guaranteed & not taxable as income; may be used in 6 ways.






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






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






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






5. Annuity distributions prior to age 59 1/2 incur a 10% IRS penalty EXCEPT for death - disability - immediate annuity - or rollover.






6. Basic Medical; Major Medical; Comprehensive Major Medical






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






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






9. 1: Individual; 2: Joint - multiple annuitants paid until 1st dies; 3: Joint & Survivor - multiple annuitants paid until 1st dies THEN survivors paid but @ reduced $.






10. Experience - rates impacted by actual prior claim experience of actual group; Community - identical rates used for entire community - regardless of experience.






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






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






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






14. 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.






15. Underwriting - determines insurability; Marketing/Sales - determines products; Actuarial - determines rates; Claims - investigates/pays claims.






16. 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.






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






18. Mathematical law stating the larger # of occurrences - the more predictable the losses; used to calculate premiums.






19. Federal law which prohibits companies w/ 15+ employees from decreasing coverage benefits for women affected by pregnancy or childbirth.






20. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






21. 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.






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






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






24. War; elective cosmetic surgery; routine dental; work. comp.-covered claims; self-inflicted (intentional); gov't. facility treatment; LTC; private nursing.






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






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






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






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






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






30. 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.






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






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






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






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






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






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






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






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






39. Unilateral - Insurer provides contract; Adhesion - parties must adhere to terms; Aleatory - benefits may not inure equally.






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






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






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






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






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






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






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






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






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






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






50. Agreement - Offer & acceptance; Consideration - application + premium; Legal capacity - licensed &/or competent; Legal purpose - public good.