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. IRS allows tax-free transfer of cash values between 2 LIKE policies (i.e. Life to Life - Annuity to Annuity - or Life to Annuity).






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






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






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






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






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






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






8. Mandatory 100% employer-funded coverage for injuries/illnesses occurring "on" job; full-time employees only; exclusive remedy. Provides: 1: unlimited medical benefit; 2: survivor income replacement & funeral ($5 -000 max.); 3: disability benefit @ 66

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






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






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






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






13. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






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






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






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






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






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






19. Same as WL but death benefit increases annually - linked to Consumer Price Index; premium increases annually OR is set high from start.






20. 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.






21. Provides increased death benefit if death occurs w/in 90 days & as result of accident; relatively INexpensive add-on.






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






23. Death benefits & premium automatically increase annually based on inflationary index (i.e. Consumer Price Index).






24. 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.






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






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






27. 'The inability to perform your OWN normal occupation or daily duties'.






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






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






30. 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.






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






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






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






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






35. Identical to Incontestable Clause in Life policy.






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






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






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






39. 1: Straight aka Pure Life - lifetime income but no survivorship refund; 2: Life w/ Period Certain - lifetime income w/ death benefit of monthly annuity for remaining predetermined term. 3: Annuity Certain - monthly income paid for predetermined term






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






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






42. 1: mortality probability charge; 2: Insurer's investment return; 3: expenses (admin costs - commissions). 1 - 2 = net; 1 - 2 + 3 = gross.






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






44. An attempt to contain costs by employing various strategies - including wellness programs - preventative testing - outpatient & alternative procedures.






45. Mortality is the statistical possibility of death @ each age. Morbidity is the statistical possibility & extent of disability @ each age.






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






47. Provides benefit during Social Security "black-out" period - up to 1 yr.






48. 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.






49. 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






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