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






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


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






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






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






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






7. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






8. Provides for continued operation of business if partner becomes disabled - by allowing other partner(s) to buy disabled partner's interest in business.






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






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






11. Coverage for catastrophic loss w/ high limits - front end deductible; co-insurance (80/20%); blanket coverage; stop loss max.






12. 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.






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






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






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






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






17. Price of insurance per exposure unit.






18. Covers entire family w/ WL for breadwinner & (convertible) Level Term for spouse & children (until certain age).






19. Extreme form of Limited Pay Whole Life whereby entire premium is paid in a single payment.






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






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






22. Waives premium upon disability of Insured until return to work; disability must persist for 90 days or longer; 1st 90 day premiums refunded after 90 days.






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






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






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






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






27. Provides medical & personal services for people needing extended assistance w/ Activities of Daily Living (ADL). Other benefits include: assisted living care; respite care; hospice care; adult day care.






28. A&H - A&S - Sickness only; Medical; Disability; Accident only; Travel accident; LTC; Medicare supplement; AD&D; Dental/Vision/Prescription; Limited.






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






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






31. Basic Medical; Major Medical; Comprehensive Major Medical






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






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






34. Annuity distributions prior to age 59 1/2 incur a 10% IRS penalty EXCEPT for death - disability - immediate annuity - or rollover.






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






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






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






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






39. Qualified Annuity - Tax-deductible contributions & tax-deferred growth but fully taxable w/drawals.






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






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






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






43. Accumulation or "pay-in" - contributions & interest earned are tax-deferred; Annuity or "pay-out" - monthly annuity (taxable) paid.






44. Financial interest in insured party that must exist @ time of application OR policy issuance. Requires consent (except minors).






45. Savings account for medical expenses; Tax-deductible contributions; tax-deferred growth; tax-free for qualified use; taxable for non-qualified use.






46. Federal law which prohibits companies w/ 15+ employees from decreasing coverage benefits for women affected by pregnancy or childbirth.






47. Identical to Incontestable Clause in Life policy.






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






49. Funding mechanism whereby employer & employee share cost of premium. Upon death - benefit is shared between employer & beneficiary.






50. Policy owner has 90 days from date of loss to submit proof of loss to Insurer; valid claim must be paid immediately upon receipt.