Test your basic knowledge |

CA Life Agent Exam

Subject : certifications
  • 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. Domestic - within home state; Foreign - outside home state; Alien - outside home country.

2. Same as Comprehensive Major Medical but w/ integrated deductible; much more expensive.

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

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

5. Underwriting - determines insurability; Marketing/Sales - determines products; Actuarial - determines rates; Claims - investigates/pays claims.

6. 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.

7. Same as WL but premium low for 1st 3-5 yrs. - THEN has one-time premium increase.

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

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

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

11. Hybrid of HMO & PPO w/ greater flexibility on choosing specialists outside network w/ benefits still provided but @ higher co-pay.

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

13. Death benefits & premium automatically increase annually based on inflationary index (i.e. Consumer Price Index).

14. Revocable - changeable anytime w/ Change of Beneficiary Form; Irrevocable - not changeable w/out beneficiary permission.

15. Beneficiary has right to leave death benefits / Insurer to protect $ from creditors; interest (taxable) paid on retained funds.

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

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

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

19. Prepaid med. benefits for members ONLY w/ approved primary care M.D. (HMO employee); focus on preventative care; low co-pay.

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

21. A company providing lump sum buyout (50-90% of total) of Life policy; becomes owner & beneficiary & assumes premium payments; usually terminally ill viator.

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

23. Excludes coverage for specific injury/illness either temporarily or permanently in order to eliminate pre-existing condition.

24. Federal law which prohibits companies w/ 15+ employees from decreasing coverage benefits for women affected by pregnancy or childbirth.

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

26. An unintentional mistake committed by an insurance representative; may be covered by E&O insurance.

27. Available for any reason up to full cash value @ fixed (max 8%) OR variable interest rate; loan $ + interest deducted from benefit @ death.

28. Time period preceding each disability during which benefits are not paid; longer elimination periods = cheaper premium.

29. 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.

30. Policy owner has 90 days from date of loss to submit proof of loss to Insurer; valid claim must be paid immediately upon receipt.

31. Death benefit is NOT taxable. Cash value grows tax-deferred but cost basis (base premium) is not taxable - only interest is.

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

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

34. Process whereby a reinsurer reinsures w/ another reinsurer.

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

36. Allows Insured to increase death benefit w/out medical exam (subject to age max.) w/ additional premium rate determined @ attained age.

37. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.

38. Receipt whereby coverage incepts ONLY after underwriting approval.

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

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

41. Federal law allows employees/their dependents to continue group benefits w/in 60 days after termination (if employer has 20+ employees); Insured pays premium @ 102% of group cost.

42. 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.

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

44. Private sector (Commercial) - provides LA&H - P&C - & LTC; Public sector (Gov't) - provides flood - work. comp. - Medicare/Medicaid - Group Life (SGLI/FEGLI).

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

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

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

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

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

50. If total premiums paid w/in 1st 7 yrs. exceed net level premium that should have been paid - policy is an MEC.