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






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






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






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






5. Must be delivered in person or by certified - registered or 1st-class mail w/ signature - unless waived by Insurance Commissioner.






6. If total premiums paid w/in 1st 7 yrs. exceed net level premium that should have been paid - policy is an MEC.






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






8. Prohibited w/ regard to testing for people of same class; test results must remain confidential; coverage may be declined (once discovered).






9. 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.






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






11. Same as WL but w/ Decreasing Term rider; upon death - pays monthly income for REMAINING term AFTER which pays full death benefit.






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






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






14. Identical to Incontestable Clause in Life policy.






15. Privately-sold policies to provide benefits not covered by Medicare; divided into 12 plans listed alphabetically A - L; 30-day free look; guaranteed renewable.






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






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






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






19. Tendency of poorer risks to seek insurance.






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






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






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






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






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






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






26. Hybrid of HMO & PPO w/ greater flexibility on choosing specialists outside network w/ benefits still provided but @ higher co-pay.






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






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






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






30. 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;






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






32. Dividends are NOT taxable but interest is. Loan interest is NOT tax-deductible. Interest paid by Insurer on retained funds is taxable.






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






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






35. Price of insurance per exposure unit.






36. No-charge annuity w/drawals allowed up to 10% of total - THEN penalized on sliding scale based on # policy yrs.; conditionally waived.






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






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






39. Summary of coverage including premium & mode of payment - death benefit - beneficiary(ies) - exclusions - & promise to pay.






40. Req. by CA statute & may provide workers coverage for action-over claims.






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






42. Covers disabilities occurring both "on" AND "off" job; "on" job benefits paid in addition to work. comp. - if applicable (i.e. individual plan).






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






44. Insurer has right to adjust (+ or -) death benefit if age or sex is misstated but normally doesn't void policy.






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






46. 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.






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






48. No deductible coverage for: daily room/board; ancillary costs; surgeon &/or physician expense (for added premium).






49. 'The inability to perform ANY gainful occupation'.






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