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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. Savings account for medical expenses; Tax-deductible contributions; tax-deferred growth; tax-free for qualified use; taxable for non-qualified use.






2. PURELY employer-funded account to reimburse employees for qualified medical expenses not covered by group health plan.






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






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






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






6. Coverage for catastrophic loss w/ high limits - front end deductible; co-insurance (80/20%); blanket coverage; stop loss max.






7. Basic Medical; Major Medical; Comprehensive Major Medical






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






9. 'The inability to perform your OWN normal occupation or daily duties'.






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






11. Death benefits & premium automatically increase annually based on inflationary index (i.e. Consumer Price Index).






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






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

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






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






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






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






18. Written policy terms supersede oral statements made prior to policy issue.






19. 1: Fixed - guaranteed fixed monthly income & fixed interest rate; 2: Variable - unguaranteed; monthly income varies based on stocks/bond returns.






20. 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.






21. Provides supplemental coverage for physician/surgeon fees if enrolled (during enrollment period ONLY) & pay monthly premium w/ deductible and co-insurance.






22. Same as WL but w/ Decreasing Term rider; upon death - pays monthly income for REMAINING term AFTER which pays full death benefit.






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






24. Actual/Expressed - written powers; Implied - unwritten but customary practices; Apparent - perceived powers.






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






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






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






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






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






30. Both Contributory & Non-contributory Group policies are deductible to employer (not employee) but benefits are taxable. Individual policy premium is NOT deductible but benefit is received tax-free.






31. Business continuation funding plan whereby each partner agrees to buy Life policies on each other - but not themselves.






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






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






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






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






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






37. Disability income is based on "earned income" (salary - bonus - commission) - not unearned income (interest - investment - rents).






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






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






40. Disability policy rider covering "the inability to perform some - but not all of your duties"; pays max. 50% of disability benefit for up to 6 mths.






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






42. 1: Req. - unless self-employed; 2: 7-day wait for disability benefits; 3: Premium based on ex-mod; 4: Rates approved by CDI; 5: to sell - must satisfy education reqs.






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






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






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






46. Level - fixed death benefit - premium fixed until renewal; Decreasing - death benefit decreases over term - premium fixed until renewal; Increasing - death benefit increases over term - premium fixed until renewal.






47. Provides benefit during Social Security "black-out" period - up to 1 yr.






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






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






50. Federal law allows employees/their dependents to continue group benefits w/in 60 days after termination (if employer has 20+ employees); Insured pays premium @ 102% of group cost.






Can you answer 50 questions in 15 minutes?



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