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. War; elective cosmetic surgery; routine dental; work. comp.-covered claims; self-inflicted (intentional); gov't. facility treatment; LTC; private nursing.






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


3. 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.






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






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






6. Non-qualified Annuity - Non-deductible contributions & tax-deferred growth. At pay-out - tax-free principal but taxable growth.






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






8. 1: Fixed - guaranteed fixed monthly income & fixed interest rate; 2: Variable - unguaranteed; monthly income varies based on stocks/bond returns.






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






10. Identical to Incontestable Clause in Life policy.






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






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






13. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






14. 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.






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






16. Tendency of poorer risks to seek insurance.






17. An attempt to contain costs by employing various strategies - including wellness programs - preventative testing - outpatient & alternative procedures.






18. Policy owner must notify Insurer of loss either in writing - in person or by phone w/in 20 days.






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






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






22. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






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






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






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






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. Prevents overinsuring in order to profit from disability by coordinating benefits between Insurers.






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






29. Privately-sold policies to provide benefits not covered by Medicare; divided into 12 plans listed alphabetically A - L; 30-day free look; guaranteed renewable.






30. 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






31. Federal law allows employees/their dependents to continue group benefits w/in 60 days after termination (if employer has 20+ employees); Insured pays premium @ 102% of group cost.






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






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






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






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






36. Same as Comprehensive Major Medical but w/ integrated deductible; much more expensive.






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






38. Refund of 50-80% of premium (minus claims paid) every 5-10 yrs. OR age 65; expensive!






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






40. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.






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






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






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






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






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






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






47. 1: Individual; 2: Joint - multiple annuitants paid until 1st dies; 3: Joint & Survivor - multiple annuitants paid until 1st dies THEN survivors paid but @ reduced $.






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






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






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