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. Two death benefit options - Option A: death benefit ONLY; Option B: death benefit + cash value; death benefit NOT guaranteed.






2. PURELY employer-funded account to reimburse employees for qualified medical expenses not covered by group health plan.






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






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






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






6. Provides coverage for specific disease(s) - such as cancer or leukemia.






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






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






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






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






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






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






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






14. 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.






15. Facultative - case by case agreements; Automatic/Treaty - automatic acceptance of risk percentage per previous agreement.






16. Insured can seek legal action against Insurer for denial of claim only after 60 days and up to 3 yrs. after providing proof of loss.






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






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






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






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






21. 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).






22. 1: Fixed - guaranteed fixed monthly income & fixed interest rate; 2: Variable - unguaranteed; monthly income varies based on stocks/bond returns.






23. 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






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






25. Agents - represent Insurer; Brokers - represent themselves & Insured; Solicitors - represent one agent to solicit leads.






26. WL policy covering 2 or more Insureds but ONLY payable upon death of LAST Insured - generally low premium but high death benefit.






27. Savings account for medical expenses; Tax-deductible contributions; tax-deferred growth; tax-free for qualified use; taxable for non-qualified use.






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






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






30. 1: Immediate benefits rec'd w/in 30 days but premium must be paid by lump sum; 2: Deferred - usually until retirement.






31. 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






32. 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.






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






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






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






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






37. Level - fixed death benefit - premium fixed until renewal; Decreasing - death benefit decreases over term - premium fixed until renewal; Increasing - death benefit increases over term - premium fixed until renewal.






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






39. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






40. Price of insurance per exposure unit.






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






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






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






44. 1: Individual; 2: Joint - multiple annuitants paid until 1st dies; 3: Joint & Survivor - multiple annuitants paid until 1st dies THEN survivors paid but @ reduced $.






45. 1: Cash (tax-free); 2: Apply to future premiums; 3: Retained by Insurer @ interest; 4: Buy Paid-up WL policy add-ons; 5: Pay-up existing policy; 6: Buy 1-yr. Term policy.






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






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






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






49. Pre-existing illness/injury; Waiting period; Elimination period; Probationary period; Benefits - Exclusions - Limitations; Underwriting reqs.






50. 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.