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. PURELY employer-funded account to reimburse employees for qualified medical expenses not covered by group health plan.






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






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






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






5. 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.






6. Insurance purchased by other Insurer(s) to spread or diversify risk; promotes industry stability.






7. 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.






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






9. Potential circumstance that could cause a loss; measured in dollars.






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






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






12. Grows @ fixed min. interest rate but w/ possible higher rate tied to equity index (i.e S&P Equity Index) appreciation; gains shared w/ Insurer.






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






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






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






16. 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.






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






18. Tendency of poorer risks to seek insurance.






19. Qualified Annuity - Tax-deductible contributions & tax-deferred growth but fully taxable w/drawals.






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






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






22. Allows Insured to increase death benefit w/out medical exam (subject to age max.) w/ additional premium rate determined @ attained age.






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






24. Provides % of monthly income benefit if Insured becomes disabled due to illness or accident.






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






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






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






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






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






30. Guaranteed min. interest rate on cash value buildup but possible higher rate if short-term investment returns higher than expected.






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






32. 1: mortality probability charge; 2: Insurer's investment return; 3: expenses (admin costs - commissions). 1 - 2 = net; 1 - 2 + 3 = gross.






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






34. 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.






35. Death benefit determined by Insured's financial goals & needs (minus assets).






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






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






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






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






40. Same as WL but policy owner can adjust death benefit w/ corresponding premium adjustments; mostly obsolete.






41. Process which prevents claim denial as a result of false statement or promise (made by Insurer) - which was relied upon by Insured.






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






43. Prepaid med. benefits for members w/ approved primary care M.D. (independent); low co-pay; non-PPO M.D. can be used at higher cost.






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






45. 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.






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






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






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






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






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