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






2. Potential circumstance that could cause a loss; measured in dollars.






3. 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.






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






5. Provides for continued operation of business if partner dies - by allowing surviving partner(s) to buy deceased partner's interest in business.






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






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






8. Price of insurance per exposure unit.






9. 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.






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






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






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






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






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






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






16. 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.






17. Intentional deception; grounds for rescission.






18. Coverage for catastrophic loss w/ high limits - front end deductible; co-insurance (80/20%); blanket coverage; stop loss max.






19. 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.






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






21. Provides supplemental coverage for physician/surgeon fees if enrolled (during enrollment period ONLY) & pay monthly premium w/ deductible and co-insurance.






22. 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






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






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






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






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






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






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






29. 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).






30. Monthly; Quarterly; Semi-annually; Annually (cheapest due to less admin cost).






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






32. Waives premium upon disability of Insured until return to work; disability must persist for 90 days or longer; 1st 90 day premiums refunded after 90 days.






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






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






35. 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.






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






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






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






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






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






41. Federal law which allows health coverage portability when changing jobs - so long as previous coverage was in effect 63+ days; allows some tax deductibility for LTC.






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






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






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






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






46. Disability income is based on "earned income" (salary - bonus - commission) - not unearned income (interest - investment - rents).






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






48. Expands individual WL policy to include Term Life for dependents (spouse - children - etc.).






49. 'The inability to perform ANY reasonable occupation based on education - training or experience'.






50. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.







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