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






2. 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.






3. Provides coverage for specific disease(s) - such as cancer or leukemia.






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






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






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






7. 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.






8. 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.






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






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






11. 1: Immediate benefits rec'd w/in 30 days but premium must be paid by lump sum; 2: Deferred - usually until retirement.






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






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






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






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






16. Plan A is the CORE benefit & is least expensive; All other plans include Plan A + additional benefits. Plans F & J are high deductible. K & L are both deductible & co-pay plans.






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






18. 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.






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






20. Policy covering minor child; premium fixed but death benefit increases by 5 times @ age 18 or 21.






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






22. 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.






23. No-cost provision that authorizes Insurer to borrow from cash value to pay unpaid premiums after grace period; must ask for @ app. time.






24. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)






25. Identical to Incontestable Clause in Life policy.






26. Death benefit is NOT taxable. Cash value grows tax-deferred but cost basis (base premium) is not taxable - only interest is.






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






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






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






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






31. Policy owner has right to determine mode of premium payment but Insurer can charge admin. fee if not annual.






32. Hybrid of HMO & PPO w/ greater flexibility on choosing specialists outside network w/ benefits still provided but @ higher co-pay.






33. 4: Funds retained by Insurer until w/drawn - interest ONLY paid monthly (taxable); 5: Paid-up immediate annuity.






34. Policy provisions must conform to state regulations where policy is sold.






35. Pure risk involves chance of loss ONLY (accident or misfortune). Speculative risk involves chance of loss OR gain (gambling - stock investment).






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






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






38. Accumulation or "pay-in" - contributions & interest earned are tax-deferred; Annuity or "pay-out" - monthly annuity (taxable) paid.






39. Time extension of benefits based on "qualifying" event. 18 mth. extension if laid off or fired; 36 mth. extension if death - divorce or child leaves home.






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






41. 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.






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






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






44. Time period preceding each disability during which benefits are not paid; longer elimination periods = cheaper premium.






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






46. Same as WL but death benefit decreases each yr. w/ dividends paid annually to offset decrease.






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






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






49. 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.






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