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






2. 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.






3. Earned premium is $ paid for coverage to date. Unearned premium is $ paid & returnable due to coverage not provided.






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






5. Time extension of benefits based on "qualifying" event. 18 mth. extension if laid off or fired; 36 mth. extension if death - divorce or child leaves home.






6. Insurer has right to rescind policy & return premium if material misrepresentation in application is found w/in 1st 2 yrs.






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






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






9. Same as WL but premium low for set # yrs. - THEN premiums vary (+ or -) based on Insurer's investment returns - w/ Gmax.






10. Allows for Term policy renewal @ higher premium w/out medical exam; guarantees insurability; based on actual/attained age.






11. If 2 or more family members are injured in the same accident - only payment of a single deductible is required.






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






13. Must be delivered in person or by certified - registered or 1st-class mail w/ signature - unless waived by Insurance Commissioner.






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






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






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






17. Upon death - death benefit is paid + the aggregate of cash value accumulated to date; add-on to WL policy ONLY.






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






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






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






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






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






23. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.






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






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






26. 1: Cash (tax-free); 2: Apply to future premiums; 3: Retained by Insurer @ interest; 4: Buy Paid-up WL policy add-ons; 5: Pay-up existing policy; 6: Buy 1-yr. Term policy.






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






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






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






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






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






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






33. Policy owner must notify Insurer of loss either in writing - in person or by phone w/in 20 days.






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






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






36. Tendency of poorer risks to seek insurance.






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






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






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






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






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






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






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






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






45. Potential circumstance that could cause a loss; measured in dollars.






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






47. 4: Funds retained by Insurer until w/drawn - interest ONLY paid monthly (taxable); 5: Paid-up immediate annuity.






48. To "make whole again" w/out benefit or detriment; neither monetary profit nor loss.






49. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)






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