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






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






3. Written contract to transfer risk of premature death from one party to another; pays stated sum upon death; creates instant estate.






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






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






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

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


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






8. If Insured changes to: more hazardous job - benefits reduced; less hazardous job - premiums reduce.






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






10. Facultative - case by case agreements; Automatic/Treaty - automatic acceptance of risk percentage per previous agreement.






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






12. 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.






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






14. Provides 24 hr. health coverage both "on" & "off" job - but may cause coverage duplication & coordination challenges.






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






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






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






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






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






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






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






22. Type of partial disability rider - which pays fluctuating % of lost income w/out time limit.






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






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






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






26. After 2-3 yrs. - Whole Life policy equity builds tax-deferred @ fixed interest rate until it equals death benefit; borrowable but taxable.






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






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






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






30. War - 2 types; Suicide (1st 2 yrs.); Aviation (non-commercial); Hazardous hobbies; Criminal acts; Alcohol/Drug influenced.






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






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






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






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






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






36. 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.






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






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






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






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






41. Policyholders - Mutual (participating) co. - may pay dividends; Stockholders - Stock (non-participating) co. - no dividends.






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






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






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






45. Basic Medical; Major Medical; Comprehensive Major Medical






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






47. No-charge annuity w/drawals allowed up to 10% of total - THEN penalized on sliding scale based on # policy yrs.; conditionally waived.






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






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






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