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






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






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






4. A&H - A&S - Sickness only; Medical; Disability; Accident only; Travel accident; LTC; Medicare supplement; AD&D; Dental/Vision/Prescription; Limited.






5. Mortality is the statistical possibility of death @ each age. Morbidity is the statistical possibility & extent of disability @ each age.






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






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






8. 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.






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






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






11. 1: Straight aka Pure Life - lifetime income but no survivorship refund; 2: Life w/ Period Certain - lifetime income w/ death benefit of monthly annuity for remaining predetermined term. 3: Annuity Certain - monthly income paid for predetermined term






12. Summary of coverage including premium & mode of payment - death benefit - beneficiary(ies) - exclusions - & promise to pay.






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

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


14. Intentional deception; grounds for rescission.






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






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






17. Provides for continued operation of business if partner dies - by allowing surviving partner(s) to buy deceased partner's interest in business.






18. 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.






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






20. Agreement - Offer & acceptance; Consideration - application + premium; Legal capacity - licensed &/or competent; Legal purpose - public good.






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






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






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






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






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






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






27. Provides coverage for specific disease(s) - such as cancer or leukemia.






28. 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.






29. Death benefit determined by Insured's projected lost earnings potential.






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






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






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






33. Same as WL but can be "paid-up" early by paying larger premium for shorter payment period (i.e. 10 Pay Life - 20 Pay Life).






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






35. 4: Funds retained by Insurer until w/drawn - interest ONLY paid monthly (taxable); 5: Paid-up immediate annuity.






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






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






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






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






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






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






42. Prepaid med. benefits for members w/ approved primary care M.D. (independent); low co-pay; non-PPO M.D. can be used at higher cost.






43. Coverage remains in effect for 31 days past premium due date; benefits paid during grace period would be deducted from sum.






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






45. Fraternal - non-profit - members only; Reciprocal - unincorp'd org. - members insure each other; Lloyd's Assoc. - groups sharing risks; Surplus lines - special market risks.






46. 1: Fixed - guaranteed fixed monthly income & fixed interest rate; 2: Variable - unguaranteed; monthly income varies based on stocks/bond returns.






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






48. Basic Medical; Major Medical; Comprehensive Major Medical






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






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