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






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






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






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






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






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






7. 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.






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






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






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






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






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






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






14. 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.






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






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






17. 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.






18. 1: Fixed - guaranteed fixed monthly income & fixed interest rate; 2: Variable - unguaranteed; monthly income varies based on stocks/bond returns.






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






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






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






22. Policyholders - Mutual (participating) co. - may pay dividends; Stockholders - Stock (non-participating) co. - no dividends.






23. Federally-funded but state-run program for truly indigent individuals & families providing medical care at Federal clinic.






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






25. 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.






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






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






28. WL policy covering 2 or more Insureds but ONLY payable upon death of LAST Insured - generally low premium but high death benefit.






29. Generally 10 days after policy delivery to cancel policy w/ full refund - except 30 days for seniors or for replacement policies.






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






31. Voiding an insurance contract based on fraud - concealment or material misrepresentation; premiums returned; policy treated as never existing.






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






33. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






34. Tendency of poorer risks to seek insurance.






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






36. Treating or mitigating loss exposures through 1: avoidance; 2: retention (deductibles); 3: sharing; 4: reduction; or 5: transfer.






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






38. Provides usual & customary business expenses (rent - utilities - salaries - mortgage) if owner becomes disabled; premiums deductible - benefits taxable.






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






40. Term Life policy w/ decreasing death benefit; usually used to secure credit (loan) w/ lender as beneficiary & borrower as Insured.






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






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






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






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






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






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






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






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






49. 1: Immediate benefits rec'd w/in 30 days but premium must be paid by lump sum; 2: Deferred - usually until retirement.






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