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. Price of insurance per exposure unit.






2. Time extension of benefits based on "qualifying" event. 18 mth. extension if laid off or fired; 36 mth. extension if death - divorce or child leaves home.






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






4. Basic Medical; Major Medical; Comprehensive Major Medical






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






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






7. Policy must be delivered w/ original (or copy of same) application attached.






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






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






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






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






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






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






14. 1: Req. - unless self-employed; 2: 7-day wait for disability benefits; 3: Premium based on ex-mod; 4: Rates approved by CDI; 5: to sell - must satisfy education reqs.






15. Same as WL but premium low for 1st 5 yrs. - THEN has annual premium increases for set # yrs. - THEN level premium.






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






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






18. Dependent children are covered until 19 or 23 (full-time student only) or until self-sufficient (if handicapped).






19. 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.






20. Temp. coverage for set duration w/ death benefit ONLY (no cash value) - offers largest $ for lowest premium; renewable; convertible.






21. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






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






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






24. A lapsed policy may be reinstated if not longer than 3-5 yrs. - & proof of insurability re-established - & back premiums + interest paid.






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






26. 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.






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






28. Federally-sponsored health care for individuals 65+ &/or w/ certain disabilities; may run concurrent w/ group plan but group plan would act primary - THEN Medicare.






29. Allows policy owner to w/draw set % of death benefit upon verification of terminal illness w/ expectancy 12-24 mths.; generally tax-free.






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






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






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






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






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






35. Available for any reason up to full cash value @ fixed (max 8%) OR variable interest rate; loan $ + interest deducted from benefit @ death.






36. Physical - slippery floor; Moral - dishonest acts; Morale - carelessness or recklessness.






37. Policy provisions must conform to state regulations where policy is sold.






38. Provides professional services - rehabilitation - training/re-training & related costs to assist Insured in returning to work.






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






40. Receipt whereby coverage incepts ONLY after underwriting approval.






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






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






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






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






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






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






47. 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.






48. War; elective cosmetic surgery; routine dental; work. comp.-covered claims; self-inflicted (intentional); gov't. facility treatment; LTC; private nursing.






49. An unintentional mistake committed by an insurance representative; may be covered by E&O insurance.






50. Same as WL but cash value increases @ current interest rates (not set); premium can start low or high & may change.