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. Type of partial disability rider - which pays fluctuating % of lost income w/out time limit.






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






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






4. Fraternal - non-profit - members only; Reciprocal - unincorp'd org. - members insure each other; Lloyd's Assoc. - groups sharing risks; Surplus lines - special market risks.






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






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






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






8. Federal law which prohibits companies w/ 15+ employees from decreasing coverage benefits for women affected by pregnancy or childbirth.






9. Non-qualified Annuity - Non-deductible contributions & tax-deferred growth. At pay-out - tax-free principal but taxable growth.






10. Identical to Incontestable Clause in Life policy.






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






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






13. 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.






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






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






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






17. Permanent disability due to total loss of sight - hearing - speech or use of 2 + limbs; benefits paid even while continuing to work.






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






19. Fixed premium w/ guaranteed min. death benefit that may increase due to higher than expected investment returns.






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






21. 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.






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






23. 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.






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






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






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






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






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






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






30. After 2-3 yrs. - Whole Life policy equity builds tax-deferred @ fixed interest rate until it equals death benefit; borrowable but taxable.






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






32. Same as WL but w/ Level Term rider; upon death - pays monthly income for FULL term AFTER which pays full death benefit.






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






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






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






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






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






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






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






40. Prepaid med. benefits for "subscribers" @ approved facilities; many non-profit; Blue Cross - Hospital stays; Blue Shield - M.D. costs.






41. 1: Cash (tax-free); 2: Apply to future premiums; 3: Retained by Insurer @ interest; 4: Buy Paid-up WL policy add-ons; 5: Pay-up existing policy; 6: Buy 1-yr. Term policy.






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






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






44. Primary - if 2 or more - equally shared; Contingent (Secondary) - only if primary dead; Tertiary - only if both primary & secondary dead. If none listed - goes to estate.






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






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






47. Tendency of poorer risks to seek insurance.






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






49. Same as WL but w/ adjustable death benefit (& corresponding premium) & over-fund option but w/ annually renewable term (ART).






50. Price of insurance per exposure unit.