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






2. 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.






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






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






5. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






6. No coverage for injuries while: 1: @ voluntary social event; 2: self-inflicted (intentional); 3: under alcohol/drug influence; 4: committing criminal act; 5: aggressor in workplace fight; 6: participating in athletic event (non-pro. athletes) 7: par






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






8. Tendency of poorer risks to seek insurance.






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






10. Insurer has right to rescind policy & return premium if material misrepresentation in application is found w/in 1st 2 yrs.






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






12. Policy covering minor child; premium fixed but death benefit increases by 5 times @ age 18 or 21.






13. Period of time following any children's survivor benefit & before benefits are provided to employee's widow/widower.






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






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






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






17. 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.






18. Treating or mitigating loss exposures through 1: avoidance; 2: retention (deductibles); 3: sharing; 4: reduction; or 5: transfer.






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






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






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






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






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






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






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






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






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






28. Same as WL but premium low for set # yrs. - THEN premiums vary (+ or -) based on Insurer's investment returns - w/ Gmax.






29. Representation - oral or written statement made to best of knowledge or belief; Warranty - statement guaranteed/presumed/understood to be true.






30. Periodic return of premium to policy owners from Mutual (Par) Companies; not guaranteed & not taxable as income; may be used in 6 ways.






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






32. Responsible adult trustee designated to manage death benefits for minor child beneficiary until adulthood.






33. Excludes coverage for suicide during 1st 2 yrs. ONLY but - if it does - all premiums must be returned to beneficiary.






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






35. Business continuation funding plan whereby each partner agrees to buy Life policies on each other - but not themselves.






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






37. Funding mechanism whereby employer & employee share cost of premium. Upon death - benefit is shared between employer & beneficiary.






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






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






40. Combination of Basic Medical & Major Medical in one policy; Basic pays 1st - then Major Medical w/ corridor deductible.






41. 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.






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






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






44. Receipt whereby coverage incepts ONLY after underwriting approval.






45. Provides hospital insurance automatically @ age 65 (if FICA qualified) @ no fee but may have deductible & co-pay.






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






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






48. Federal law to protect Federal employees' (& their beneficiaries') pension - group insurance - & welfare benefits.






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






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