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. Benefits NOT taxable; employer-paid premiums deductible to employer; individual plans not deductible unless over 7 1/2% of adjusted gross income - then excess deductible.






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






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






4. Provides 24 hr. health coverage both "on" & "off" job - but may cause coverage duplication & coordination challenges.






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






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






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






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






9. Grows @ fixed interest rate for set term but cash value may adjust to prevailing rate (+ or -) if fully surrendered before term ends; % w/drawal ok.






10. 'The inability to perform your OWN normal occupation or daily duties'.






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






12. Provides coverage for specific disease(s) - such as cancer or leukemia.






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






14. Benefits automatically increase annually based on inflationary index (i.e. Consumer Price Index) OR flat rate (5% max.).






15. 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;






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






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






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






19. 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.






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






21. Insurer has right to rescind policy & return premium if material misrepresentation in application is found w/in 1st 2 yrs.






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






23. Intentional deception; grounds for rescission.






24. War - 2 types; Suicide (1st 2 yrs.); Aviation (non-commercial); Hazardous hobbies; Criminal acts; Alcohol/Drug influenced.






25. 1: Immediate benefits rec'd w/in 30 days but premium must be paid by lump sum; 2: Deferred - usually until retirement.






26. Unintentional - up to $1 -000 + legal $; Intentional - $1 -000-5 -000 + legal $; If harmful - misdemeanor + up to 1 yr. prison + up to $10 -000.






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






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






29. Employer w/ 25 or less employees must offer all eligible employees @ least 2 medical plan options where pre-existing conditions can't be excluded more than 1 yr.






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






31. 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.






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






33. 'The inability to perform ANY reasonable occupation based on education - training or experience'.






34. Written contract that provides INCOME @ high interest rate for fixed period OR for annuitant's lifetime w/ possible death benefit.






35. Basic Medical; Major Medical; Comprehensive Major Medical






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






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






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






39. 1: Cash (tax-free); 2: Apply to future premiums; 3: Retained by Insurer @ interest; 4: Buy Paid-up WL policy add-ons; 5: Pay-up existing policy; 6: Buy 1-yr. Term policy.






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






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






42. Taxable income (unlike individual plans); can be either short-term - 13-52 wks. max. or long-term - longer than 52 wks.






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






44. Same as WL but premium low for set # yrs. - THEN premiums vary (+ or -) based on Insurer's investment returns - w/ Gmax.






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






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






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






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






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






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