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. Receipt whereby coverage incepts ONLY after underwriting approval.






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






3. Policyholders - Mutual (participating) co. - may pay dividends; Stockholders - Stock (non-participating) co. - no dividends.






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






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






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






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






8. 4: Funds retained by Insurer until w/drawn - interest ONLY paid monthly (taxable); 5: Paid-up immediate annuity.






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






10. Price of insurance per exposure unit.






11. 'The inability to perform ANY gainful occupation'.






12. 1: parties to contract; 2: insured party or life; 3: insurable interest - if 3rd party; 4: risks insured against; 5: policy period (term); 6: premium & mode.






13. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






14. Premiums determined by target cash values or death benefit; partial cash value w/drawals allowed; transparent policy w/ unbundled premium.






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






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






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






18. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)






19. Same as WL but w/ adjustable death benefit (& corresponding premium) & over-fund option but w/ annually renewable term (ART).






20. 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.






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






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






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






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






25. Dependent children are covered until 19 or 23 (full-time student only) or until self-sufficient (if handicapped).






26. 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.






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






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






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






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






31. Funding mechanism whereby employer & employee share cost of premium. Upon death - benefit is shared between employer & beneficiary.






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






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






34. No coverage for injuries while: 1: @ voluntary social event; 2: self-inflicted (intentional); 3: under alcohol/drug influence; 4: committing criminal act; 5: aggressor in workplace fight; 6: participating in athletic event (non-pro. athletes) 7: par






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






36. WL policy covering 2 or more Insureds but payable upon death of FIRST Insured - after which policy ends.






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






38. 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.






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






40. 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.






41. Permanent disability due to total loss of sight - hearing - speech or use of 2 + limbs; benefits paid even while continuing to work.






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






43. 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.






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






45. 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).






46. Provides hospital insurance automatically @ age 65 (if FICA qualified) @ no fee but may have deductible & co-pay.






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






48. Term Life policy w/ decreasing death benefit; usually used to secure credit (loan) w/ lender as beneficiary & borrower as Insured.






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






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