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. 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.






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






3. Receipt whereby coverage incepts immediately upon submission of full consideration - unless declined & premium refunded.






4. Prevents overinsuring in order to profit from disability by coordinating benefits between Insurers.






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






6. 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.






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






8. Benefits NOT taxable; employer-paid premiums deductible to employer; individual plans not deductible unless over 7 1/2% of adjusted gross income - then excess deductible.






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

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






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






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






13. Annuity distributions prior to age 59 1/2 incur a 10% IRS penalty EXCEPT for death - disability - immediate annuity - or rollover.






14. Time period preceding each disability during which benefits are not paid; longer elimination periods = cheaper premium.






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






16. Upon notice - Insurer must provide Claim Form (Proof of Loss Form) to Insured w/in 15 days.






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






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






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






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






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






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






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






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






25. War - 2 types; Suicide (1st 2 yrs.); Aviation (non-commercial); Hazardous hobbies; Criminal acts; Alcohol/Drug influenced.






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






27. Mathematical calculation based on overall FICA contributions used to determine retirement/disability/survivorship benefit.






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






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






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






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






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






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






34. Privately-sold policies to provide benefits not covered by Medicare; divided into 12 plans listed alphabetically A - L; 30-day free look; guaranteed renewable.






35. 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.






36. Permanent - not recoverable (spinal cord injury); Temporary - recoverable (temp. illness/injury - broken limb).






37. Excludes coverage for specific injury/illness either temporarily or permanently in order to eliminate pre-existing condition.






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






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






40. 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.






41. Unilateral - Insurer provides contract; Adhesion - parties must adhere to terms; Aleatory - benefits may not inure equally.






42. Insurer has right to adjust (+ or -) death benefit if age or sex is misstated but normally doesn't void policy.






43. Business continuation funding plan whereby each partner agrees to buy Life policies on each other - but not themselves.






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






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






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






47. Same as WL but premium low for 1st 3-5 yrs. - THEN has one-time premium increase.






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






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






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