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. IRS allows tax-free transfer of cash values between 2 LIKE policies (i.e. Life to Life - Annuity to Annuity - or Life to Annuity).






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






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






4. War/Military; Intentional self-inflicted; Aviation (non-commercial); Foreign country; Loss of professional license; Illegal activity; Mental disorders (after 1-2 yrs.).






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






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






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






8. 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.






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






10. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






11. Provides increased death benefit if death occurs w/in 90 days & as result of accident; relatively INexpensive add-on.






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






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






14. Govt. organization providing health care benefits for dependents of military personnel.






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






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






17. 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.






18. PURELY employer-funded account to reimburse employees for qualified medical expenses not covered by group health plan.






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






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






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






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






23. Same as WL but policy owner can adjust death benefit w/ corresponding premium adjustments; mostly obsolete.






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






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






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






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






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






29. 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.






30. Non-qualified Annuity - Non-deductible contributions & tax-deferred growth. At pay-out - tax-free principal but taxable growth.






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






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






33. 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.






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






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






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






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






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






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






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






41. Partially state-funded benefits for low-income people whereby cost of care is shared between state & recipient - based on income.






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






43. Excludes coverage for suicide during 1st 2 yrs. ONLY but - if it does - all premiums must be returned to beneficiary.






44. 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.






45. Facultative - case by case agreements; Automatic/Treaty - automatic acceptance of risk percentage per previous agreement.






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






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






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






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






50. Info already known; Info that should have been known; Waived info; Irrelevant info.






Can you answer 50 questions in 15 minutes?



Let me suggest you:

Browse all subjects

Browse all tests

Most popular tests



Major Subjects

Tests & Exams


AP
CLEP
DSST
GRE
SAT
GMAT

Browse all subjects

Browse all tests

Most popular tests