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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. Commercial (private) companies; HMOs; PPOs; Blue Cross/Blue Shield; Employer-sponsored plans; Government.






3. 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.






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






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






6. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






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






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






9. Waives premium upon disability of Insured until return to work; disability must persist for 6 mths. or longer. Cash value & dividends not affected.






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






11. If 2 or more family members are injured in the same accident - only payment of a single deductible is required.






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






13. Beneficiary has right to leave death benefits / Insurer to protect $ from creditors; interest (taxable) paid on retained funds.






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






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






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






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






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

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






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






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






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






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






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






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






26. 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.






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






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






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






30. War/Military; Intentional self-inflicted; Aviation (non-commercial); Foreign country; Loss of professional license; Illegal activity; Mental disorders (after 1-2 yrs.).






31. 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.






32. Domestic - within home state; Foreign - outside home state; Alien - outside home country.






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






34. Basic Medical; Major Medical; Comprehensive Major Medical






35. Mathematical calculation based on overall FICA contributions used to determine retirement/disability/survivorship benefit.






36. 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.






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






38. Earned premium is $ paid for coverage to date. Unearned premium is $ paid & returnable due to coverage not provided.






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






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






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






42. Same as WL but can be "paid-up" early by paying larger premium for shorter payment period (i.e. 10 Pay Life - 20 Pay Life).






43. Premiums determined by target cash values or death benefit; partial cash value w/drawals allowed; transparent policy w/ unbundled premium.






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






45. An irrevocable IRS classification of a policy (determined by the 7 Pay Test) whereby tax advantages are lost for all distributions ONLY.






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






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






48. 1: parties to contract; 2: insured party or life; 3: insurable interest - if 3rd party; 4: risks insured against; 5: policy period (term); 6: premium & mode.






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






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







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