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






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






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






4. Funding mechanism whereby employer & employee share cost of premium. Upon death - benefit is shared between employer & beneficiary.






5. 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






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






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






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






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






10. 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).






11. Allows for use of HMO/PPO or other private carrier to provide expanded benefits @ additional premium & if enrolled in BOTH Parts A & B.






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






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






14. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.






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






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






17. Same as WL but w/ Level Term rider; upon death - pays monthly income for FULL term AFTER which pays full death benefit.






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






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






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






21. Representation - oral or written statement made to best of knowledge or belief; Warranty - statement guaranteed/presumed/understood to be true.






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






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






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






25. Process which prevents claim denial as a result of false statement or promise (made by Insurer) - which was relied upon by Insured.






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






27. Intentional deception; grounds for rescission.






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






29. Preferred or Preferred Smoker; Standard or Standard Smoker; Substandard; Denied.






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






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






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






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






34. Pure risk involves chance of loss ONLY (accident or misfortune). Speculative risk involves chance of loss OR gain (gambling - stock investment).






35. Benefits automatically increase annually based on inflationary index (i.e. Consumer Price Index) OR flat rate (5% max.).






36. Provides disability income during surgery recovery from life-threatening condition (& sometimes cosmetic surgery).






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






38. 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.






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






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






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






42. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






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






44. Experience - rates impacted by actual prior claim experience of actual group; Community - identical rates used for entire community - regardless of experience.






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






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






47. 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.






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






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






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