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






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






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






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






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






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






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






8. 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.






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






10. No-cost provision that authorizes Insurer to borrow from cash value to pay unpaid premiums after grace period; must ask for @ app. time.






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






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






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






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






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






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






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






18. Disability income is based on "earned income" (salary - bonus - commission) - not unearned income (interest - investment - rents).






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






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






21. 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.






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






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






24. 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.






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






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






27. Allows Term policy conversion to Permanent policy w/out medical exam; must be identical or lower death benefit; based on either attained OR original age.






28. Grows @ fixed min. interest rate but w/ possible higher rate tied to equity index (i.e S&P Equity Index) appreciation; gains shared w/ Insurer.






29. Physical - slippery floor; Moral - dishonest acts; Morale - carelessness or recklessness.






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






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






32. Provides supplemental coverage for physician/surgeon fees if enrolled (during enrollment period ONLY) & pay monthly premium w/ deductible and co-insurance.






33. Identical to Incontestable Clause in Life policy.






34. 'The inability to perform ANY reasonable occupation based on education - training or experience'.






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






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






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






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






39. 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.






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






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






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






43. An irrevocable IRS classification of a policy (determined by the 7 Pay Test) whereby tax advantages are lost for all distributions ONLY.






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






45. Period of time following any children's survivor benefit & before benefits are provided to employee's widow/widower.






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






47. Same as WL but w/ Decreasing Term rider; upon death - pays monthly income for REMAINING term AFTER which pays full death benefit.






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






49. 1: Immediate benefits rec'd w/in 30 days but premium must be paid by lump sum; 2: Deferred - usually until retirement.






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