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. Receipt whereby coverage incepts conditionally upon submission of full consideration and that all underwriting reqs. are met.






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






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






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






5. Prohibited w/ regard to testing for people of same class; test results must remain confidential; coverage may be declined (once discovered).






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






7. 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.






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






9. Generally 10 days after policy delivery to cancel policy w/ full refund - except 30 days for seniors or for replacement policies.






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






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






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






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






14. 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.






15. 1: Req. - unless self-employed; 2: 7-day wait for disability benefits; 3: Premium based on ex-mod; 4: Rates approved by CDI; 5: to sell - must satisfy education reqs.






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






17. Dependent children are covered until 19 or 23 (full-time student only) or until self-sufficient (if handicapped).






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






19. Policy provisions must conform to state regulations where policy is sold.






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






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






22. Guaranteed min. interest rate on cash value buildup but possible higher rate if short-term investment returns higher than expected.






23. 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).






24. Req. by CA statute & may provide workers coverage for action-over claims.






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






26. A lapsed policy may be reinstated if not longer than 3-5 yrs. - & proof of insurability re-established - & back premiums + interest paid.






27. 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.






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






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






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






31. Intentional OR unintentional failure to disclose material underwriting facts that should have been disclosed; grounds for policy rescission.






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






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






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






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






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






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






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






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

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






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






42. Tendency of poorer risks to seek insurance.






43. 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.






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






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






46. Prepaid med. benefits for "subscribers" @ approved facilities; many non-profit; Blue Cross - Hospital stays; Blue Shield - M.D. costs.






47. 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






48. Covers disabilities occurring both "on" AND "off" job; "on" job benefits paid in addition to work. comp. - if applicable (i.e. individual plan).






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






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