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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. Same as WL but can be "paid-up" early by paying larger premium for shorter payment period (i.e. 10 Pay Life - 20 Pay Life).






2. An unintentional mistake committed by an insurance representative; may be covered by E&O insurance.






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






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






5. 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.






6. 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.






7. Allows Insured to increase death benefit w/out medical exam (subject to age max.) w/ additional premium rate determined @ attained age.






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






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






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






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






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






13. 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.






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






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






16. Palliative - treatment to manage pain; Curative - treatment to cure illness/condition.






17. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.






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






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






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






21. Provides disability income during surgery recovery from life-threatening condition (& sometimes cosmetic surgery).






22. 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.






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






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






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






26. WL policy covering 2 or more Insureds but ONLY payable upon death of LAST Insured - generally low premium but high death benefit.






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






28. Insurance purchased by other Insurer(s) to spread or diversify risk; promotes industry stability.






29. Mortality is the statistical possibility of death @ each age. Morbidity is the statistical possibility & extent of disability @ each age.






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






31. Generally 10 days after policy delivery to cancel policy w/ full refund - except 30 days for seniors or for replacement policies.






32. Govt. organization providing health care benefits for dependents of military personnel.






33. Same as WL but premium low for 1st 3-5 yrs. - THEN has one-time premium increase.






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






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






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






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






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






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






40. Receipt whereby coverage incepts conditionally upon submission of full consideration and that all underwriting reqs. are met.






41. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






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






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






44. Covers disabilities occurring ONLY "off" job; benefits do not overlap work. comp. (i.e. Group plan).






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






46. Private sector (Commercial) - provides LA&H - P&C - & LTC; Public sector (Gov't) - provides flood - work. comp. - Medicare/Medicaid - Group Life (SGLI/FEGLI).






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






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






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






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







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