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






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






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






4. No coverage for injuries while: 1: @ voluntary social event; 2: self-inflicted (intentional); 3: under alcohol/drug influence; 4: committing criminal act; 5: aggressor in workplace fight; 6: participating in athletic event (non-pro. athletes) 7: par






5. 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.






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






7. Periodic return of premium to policy owners from Mutual (Par) Companies; not guaranteed & not taxable as income; may be used in 6 ways.






8. Federal law to protect Federal employees' (& their beneficiaries') pension - group insurance - & welfare benefits.






9. 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.






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






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






12. If Insured & primary beneficiary die due to same act (w/in 14 days) - primary assumed 1st to die & contingent beneficiary paid death benefit.






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






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






15. Provides % of monthly income benefit if Insured becomes disabled due to illness or accident.






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






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






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






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






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






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

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






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






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






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






26. Disability income is based on "earned income" (salary - bonus - commission) - not unearned income (interest - investment - rents).






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






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






29. Same as Term Life but provides living benefit (endowment) to policy owner if Insured survives entire term.






30. Federal program financed by payroll taxes provided equally by both employer & employee OR entirely by individual (if self-employed). Provides benefits for: Medicare @ age 65+; retirement; $255 lump sum death benefit; (limited) disability; survivors;






31. Reappearance of disability w/in 6 mth. period after "recovery" from same disability is considered recurrence - not new disability.






32. Dividends are NOT taxable but interest is. Loan interest is NOT tax-deductible. Interest paid by Insurer on retained funds is taxable.






33. Upon notice - Insurer must provide Claim Form (Proof of Loss Form) to Insured w/in 15 days.






34. Business continuation funding plan whereby each partner agrees to buy Life policies on each other - but not themselves.






35. Private sector (Commercial) - provides LA&H - P&C - & LTC; Public sector (Gov't) - provides flood - work. comp. - Medicare/Medicaid - Group Life (SGLI/FEGLI).






36. Insurer has right to adjust (+ or -) death benefit if age or sex is misstated but normally doesn't void policy.






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






38. The state in which the contract is accepted or delivered is the state that possesses regulatory jurisdiction over Group plan.






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






40. 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.






41. Receipt whereby coverage incepts conditionally upon submission of full consideration and that all underwriting reqs. are met.






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






43. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






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






45. Mandatory 100% employer-funded coverage for injuries/illnesses occurring "on" job; full-time employees only; exclusive remedy. Provides: 1: unlimited medical benefit; 2: survivor income replacement & funeral ($5 -000 max.); 3: disability benefit @ 66

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46. Allows policy owner to w/draw set % of death benefit upon verification of terminal illness w/ expectancy 12-24 mths.; generally tax-free.






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






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






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






50. 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.