Test your basic knowledge |

CA Life Agent Exam

Subject : certifications
  • 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. Pays death benefit until age 100 or death; builds equity (cash value); may be transferred or sold; generally level premium.

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

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

4. If Insured & primary beneficiary die due to same act (w/in 14 days) - primary assumed 1st to die & contingent beneficiary paid death benefit.

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

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

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

8. 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.

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

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

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

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

13. Waives premium on Life policy for minor child until age 21 in event premium payor dies or becomes disabled.

14. 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.

15. Grows @ fixed interest rate for set term but cash value may adjust to prevailing rate (+ or -) if fully surrendered before term ends; % w/drawal ok.

16. Provides accidental death benefit @ full $ of "principal sum". Dismemberment is paid only @ 50% principal sum ("capital sum").

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

18. 4: Funds retained by Insurer until w/drawn - interest ONLY paid monthly (taxable); 5: Paid-up immediate annuity.

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

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

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

22. Mathematical law stating the larger # of occurrences - the more predictable the losses; used to calculate premiums.

23. Allows for Term policy renewal @ higher premium w/out medical exam; guarantees insurability; based on actual/attained age.

24. Written contract that provides INCOME @ high interest rate for fixed period OR for annuitant's lifetime w/ possible death benefit.

25. Specialized policy covering diagnostic & preventative dental care; often no deductible; co-insurance; expensive; may be included w/ medical plan.

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

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

28. 1: mortality probability charge; 2: Insurer's investment return; 3: expenses (admin costs - commissions). 1 - 2 = net; 1 - 2 + 3 = gross.

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

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

31. Unilateral - Insurer provides contract; Adhesion - parties must adhere to terms; Aleatory - benefits may not inure equally.

32. Time period preceding each disability during which benefits are not paid; longer elimination periods = cheaper premium.

33. Intentional deception; grounds for rescission.

34. Price of insurance per exposure unit.

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

36. Multiple small employers w/ common affiliation (trade assoc. OR Chamber of Commerce) band together to purchase group plan.

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

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

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

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

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

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

43. Prepaid med. benefits for members ONLY w/ approved primary care M.D. (HMO employee); focus on preventative care; low co-pay.

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. Govt. organization providing health care benefits for dependents of military personnel.

46. Receipt whereby coverage incepts ONLY after underwriting approval.

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

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

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

50. Provides accidental death benefit @ full $ of "principal sum". Dismemberment is paid only @ 50% principal sum ("capital sum").