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. Temp. coverage for set duration w/ death benefit ONLY (no cash value) - offers largest $ for lowest premium; renewable; convertible.






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






3. Death benefit determined by Insured's projected lost earnings potential.






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






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






6. Responsible adult trustee designated to manage death benefits for minor child beneficiary until adulthood.






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






8. Intentional OR unintentional failure to disclose material underwriting facts that should have been disclosed; grounds for policy rescission.






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






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






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






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






13. If 2 or more family members are injured in the same accident - only payment of a single deductible is required.






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






15. 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.






16. 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.






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






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






19. A company providing lump sum buyout (50-90% of total) of Life policy; becomes owner & beneficiary & assumes premium payments; usually terminally ill viator.






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






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






23. Experience - rates impacted by actual prior claim experience of actual group; Community - identical rates used for entire community - regardless of experience.






24. Upon death - death benefit is paid + the aggregate of cash value accumulated to date; add-on to WL policy ONLY.






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






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






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






28. Allows Insured to increase death benefit w/out medical exam (subject to age max.) w/ additional premium rate determined @ attained age.






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






30. Partially state-funded benefits for low-income people whereby cost of care is shared between state & recipient - based on income.






31. Permanent - not recoverable (spinal cord injury); Temporary - recoverable (temp. illness/injury - broken limb).






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






33. Allows Insured to increase benefit w/out medical exam (subject to age max.) w/ additional premium rate determined @ attained age; must prove income increase.






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






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






36. Two death benefit options - Option A: death benefit ONLY; Option B: death benefit + cash value; death benefit NOT guaranteed.






37. 1: Fixed - guaranteed fixed monthly income & fixed interest rate; 2: Variable - unguaranteed; monthly income varies based on stocks/bond returns.






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






39. Same as WL but can be "paid-up" early by paying larger premium for shorter payment period (i.e. 10 Pay Life - 20 Pay Life).






40. Excludes coverage for suicide during 1st 2 yrs. ONLY but - if it does - all premiums must be returned to beneficiary.






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






42. Revocable - changeable anytime w/ Change of Beneficiary Form; Irrevocable - not changeable w/out beneficiary permission.






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






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






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






46. Tendency of poorer risks to seek insurance.






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






48. Prepaid med. benefits for "subscribers" @ approved facilities; many non-profit; Blue Cross - Hospital stays; Blue Shield - M.D. costs.






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






50. 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.