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






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






3. Qualified Annuity - Tax-deductible contributions & tax-deferred growth but fully taxable w/drawals.






4. Provides medical & personal services for people needing extended assistance w/ Activities of Daily Living (ADL). Other benefits include: assisted living care; respite care; hospice care; adult day care.






5. Disability policy rider covering "the inability to perform some - but not all of your duties"; pays max. 50% of disability benefit for up to 6 mths.






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






7. 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.






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






9. 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.






10. Provides usual & customary business expenses (rent - utilities - salaries - mortgage) if owner becomes disabled; premiums deductible - benefits taxable.






11. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






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






13. Provides for continued operation of business if partner becomes disabled - by allowing other partner(s) to buy disabled partner's interest in business.






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






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






16. 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.






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






18. A company providing lump sum buyout (50-90% of total) of Life policy; becomes owner & beneficiary & assumes premium payments; usually terminally ill viator.






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






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






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






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






23. Premiums determined by target cash values or death benefit; partial cash value w/drawals allowed; transparent policy w/ unbundled premium.






24. 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.






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






26. Same as WL but can be "paid-up" early by paying larger premium for shorter payment period (i.e. 10 Pay Life - 20 Pay Life).






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






28. Peril is the CAUSE of loss. Hazard is a condition that increases LIKELIHOOD of loss.






29. Unintentional - up to $1 -000 + legal $; Intentional - $1 -000-5 -000 + legal $; If harmful - misdemeanor + up to 1 yr. prison + up to $10 -000.






30. Same as Comprehensive Major Medical but w/ integrated deductible; much more expensive.






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






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






33. 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.






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






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






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






37. Same as WL but policy owner can adjust death benefit w/ corresponding premium adjustments; mostly obsolete.






38. Written policy terms supersede oral statements made prior to policy issue.






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






40. Although death benefit is tax-free - it is included in gross estate value so federal &/or state taxes may apply to a portion in excess of fixed federal limit.






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






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






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






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






45. 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.






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






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






48. Covers entire family w/ WL for breadwinner & (convertible) Level Term for spouse & children (until certain age).






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






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