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






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






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






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






5. Group plan initially self-funded by employer (like SIR); after which - group plan Insurer covers (up to policy limit); requires TPA.






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






7. Receipt whereby coverage incepts ONLY after underwriting approval.






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. Permanent - not recoverable (spinal cord injury); Temporary - recoverable (temp. illness/injury - broken limb).






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






11. Expands individual WL policy to include Term Life for dependents (spouse - children - etc.).






12. 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.






13. Allows Insured to increase benefit w/out medical exam (subject to age max.) w/ additional premium rate determined @ attained age; must prove income increase.






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






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






16. Death benefit is NOT taxable. Cash value grows tax-deferred but cost basis (base premium) is not taxable - only interest is.






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






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






19. 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.






20. Upon death - death benefit is paid + the aggregate of premiums paid to date; add-on to Term policy ONLY.






21. 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.






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






23. Tendency of poorer risks to seek insurance.






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






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






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






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






28. Intentional deception; grounds for rescission.






29. Coverage remains in effect for 31 days past premium due date; benefits paid during grace period would be deducted from sum.






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






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






32. Info already known; Info that should have been known; Waived info; Irrelevant info.






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






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






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






36. Pre-existing illness/injury; Waiting period; Elimination period; Probationary period; Benefits - Exclusions - Limitations; Underwriting reqs.






37. Provides for continued operation of business if partner dies - by allowing surviving partner(s) to buy deceased partner's interest in business.






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






39. 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;






40. 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.






41. Same as WL but premium low for 1st 3-5 yrs. - THEN has one-time premium increase.






42. A company providing lump sum buyout (50-90% of total) of Life policy; becomes owner & beneficiary & assumes premium payments; usually terminally ill viator.






43. If Insured changes to: more hazardous job - benefits reduced; less hazardous job - premiums reduce.






44. Palliative - treatment to manage pain; Curative - treatment to cure illness/condition.






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






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






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






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






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






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