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






2. Voiding an insurance contract based on fraud - concealment or material misrepresentation; premiums returned; policy treated as never existing.






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






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






5. Partially state-funded benefits for low-income people whereby cost of care is shared between state & recipient - based on income.






6. 1: Individual; 2: Joint - multiple annuitants paid until 1st dies; 3: Joint & Survivor - multiple annuitants paid until 1st dies THEN survivors paid but @ reduced $.






7. Application submitted w/out premium; no coverage until submission of full consideration & completed Statement of Continued Good Health.






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






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






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

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






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






13. Permanent disability due to total loss of sight - hearing - speech or use of 2 + limbs; benefits paid even while continuing to work.






14. Process whereby a reinsurer reinsures w/ another reinsurer.






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






16. 1: Fixed - guaranteed fixed monthly income & fixed interest rate; 2: Variable - unguaranteed; monthly income varies based on stocks/bond returns.






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






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






19. 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.






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






21. Revocable - changeable anytime w/ Change of Beneficiary Form; Irrevocable - not changeable w/out beneficiary permission.






22. Same as Term Life but provides living benefit (endowment) to policy owner if Insured survives entire term.






23. Coverage remains in effect for 31 days past premium due date; benefits paid during grace period would be deducted from sum.






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






25. War/Military; Intentional self-inflicted; Aviation (non-commercial); Foreign country; Loss of professional license; Illegal activity; Mental disorders (after 1-2 yrs.).






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






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






28. If 2 or more family members are injured in the same accident - only payment of a single deductible is required.






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






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






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






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






33. Conditional - coverage is conditional; Personal - parties are people; Good faith - honesty/integrity; Fiduciary - req's financial trust.






34. 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.






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






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






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






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






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






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






41. 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.






42. Federal law which prohibits companies w/ 20+ employees from denying work & medical benefits to employees due to age.






43. Underwriting - determines insurability; Marketing/Sales - determines products; Actuarial - determines rates; Claims - investigates/pays claims.






44. Policy owner has right to determine mode of premium payment but Insurer can charge admin. fee if not annual.






45. Time extension of benefits based on "qualifying" event. 18 mth. extension if laid off or fired; 36 mth. extension if death - divorce or child leaves home.






46. 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.






47. Death benefit determined by Insured's projected lost earnings potential.






48. 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.






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






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