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






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






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






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






5. Plan A is the CORE benefit & is least expensive; All other plans include Plan A + additional benefits. Plans F & J are high deductible. K & L are both deductible & co-pay plans.






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






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






8. Authorized (admitted) - can conduct business in state; Unauthorized (non-admitted) - cannot conduct business in state (w/ one exception).






9. 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.






10. Insurance purchased by other Insurer(s) to spread or diversify risk; promotes industry stability.






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






12. 4: Funds retained by Insurer until w/drawn - interest ONLY paid monthly (taxable); 5: Paid-up immediate annuity.






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






14. Refund of 50-80% of premium (minus claims paid) every 5-10 yrs. OR age 65; expensive!






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






16. Federally-sponsored health care for individuals 65+ &/or w/ certain disabilities; may run concurrent w/ group plan but group plan would act primary - THEN Medicare.






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






18. 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.






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






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






21. Type of partial disability rider - which pays fluctuating % of lost income w/out time limit.






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






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






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






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






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






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






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






29. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.






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






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






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






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






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






35. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






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






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






38. Specialized policy covering diagnostic & preventative dental care; often no deductible; co-insurance; expensive; may be included w/ medical plan.






39. Monthly; Quarterly; Semi-annually; Annually (cheapest due to less admin cost).






40. War; elective cosmetic surgery; routine dental; work. comp.-covered claims; self-inflicted (intentional); gov't. facility treatment; LTC; private nursing.






41. 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.






42. Same as WL but death benefit decreases each yr. w/ dividends paid annually to offset decrease.






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






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






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






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






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






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






49. 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.






50. 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.