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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 premium low for 1st 3-5 yrs. - THEN has one-time premium increase.






2. Mathematical calculation based on overall FICA contributions used to determine retirement/disability/survivorship benefit.






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






4. Potential circumstance that could cause a loss; measured in dollars.






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






6. Same as WL but w/ adjustable death benefit (& corresponding premium) & over-fund option but w/ annually renewable term (ART).






7. Same as WL but premium low for set # yrs. - THEN premiums vary (+ or -) based on Insurer's investment returns - w/ Gmax.






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






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






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






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






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






13. Conditional - coverage is conditional; Personal - parties are people; Good faith - honesty/integrity; Fiduciary - req's financial trust.






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






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






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






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






18. 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.






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






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






21. Tendency of poorer risks to seek insurance.






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






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






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






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






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






27. Allows Term policy conversion to Permanent policy w/out medical exam; must be identical or lower death benefit; based on either attained OR original age.






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






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






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






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






32. Provides accidental death benefit @ full $ of "principal sum". Dismemberment is paid only @ 50% principal sum ("capital sum").






33. Basic Medical; Major Medical; Comprehensive Major Medical






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






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






36. 1: Individual; 2: Joint - multiple annuitants paid until 1st dies; 3: Joint & Survivor - multiple annuitants paid until 1st dies THEN survivors paid but @ reduced $.






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






38. IRS allows tax-free transfer of cash values between 2 LIKE policies (i.e. Life to Life - Annuity to Annuity - or Life to Annuity).






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






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






41. 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.






42. Part of IRS Section 125 cafeteria plan - which allows pre-tax payroll deductions for qualified medical expenses or child/dependent care.






43. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






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






45. Employer w/ 25 or less employees must offer all eligible employees @ least 2 medical plan options where pre-existing conditions can't be excluded more than 1 yr.






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






47. A lapsed policy may be reinstated if not longer than 3-5 yrs. - & proof of insurability re-established - & back premiums + interest paid.






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






49. 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.






50. 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.







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