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






2. Fraternal - non-profit - members only; Reciprocal - unincorp'd org. - members insure each other; Lloyd's Assoc. - groups sharing risks; Surplus lines - special market risks.






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






4. Written contract that provides INCOME @ high interest rate for fixed period OR for annuitant's lifetime w/ possible death benefit.






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






6. Any person - assoc. - org. - partnership - business trust - LLC - or corp. capable of making an insurance contract.






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






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






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






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






11. Life license + NASD (FINRA) Series 6 or 7.






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






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






14. 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.






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






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






17. 1: mortality probability charge; 2: Insurer's investment return; 3: expenses (admin costs - commissions). 1 - 2 = net; 1 - 2 + 3 = gross.






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






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






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






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






22. 1: Straight aka Pure Life - lifetime income but no survivorship refund; 2: Life w/ Period Certain - lifetime income w/ death benefit of monthly annuity for remaining predetermined term. 3: Annuity Certain - monthly income paid for predetermined term






23. 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.






24. Provides increased death benefit if death occurs w/in 90 days & as result of accident; relatively INexpensive add-on.






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






26. Federal law which allows health coverage portability when changing jobs - so long as previous coverage was in effect 63+ days; allows some tax deductibility for LTC.






27. 'The inability to perform ANY gainful occupation'.






28. Combination of Basic Medical & Major Medical in one policy; Basic pays 1st - then Major Medical w/ corridor deductible.






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






30. Agents - represent Insurer; Brokers - represent themselves & Insured; Solicitors - represent one agent to solicit leads.






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






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






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






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






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






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






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






38. 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.






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






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






41. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.






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






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






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






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






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






47. Primary - if 2 or more - equally shared; Contingent (Secondary) - only if primary dead; Tertiary - only if both primary & secondary dead. If none listed - goes to estate.






48. Peril is the CAUSE of loss. Hazard is a condition that increases LIKELIHOOD of loss.






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






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







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