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. Savings account for medical expenses; Tax-deductible contributions; tax-deferred growth; tax-free for qualified use; taxable for non-qualified use.






2. 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.






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






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






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






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






7. Insured can seek legal action against Insurer for denial of claim only after 60 days and up to 3 yrs. after providing proof of loss.






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






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






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






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






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






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






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






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






16. 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.






17. Receipt whereby coverage incepts immediately upon submission of full consideration - unless declined & premium refunded.






18. Two death benefit options - Option A: death benefit ONLY; Option B: death benefit + cash value; death benefit NOT guaranteed.






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






20. Tendency of poorer risks to seek insurance.






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






22. Provides medical & personal services for people needing extended assistance w/ Activities of Daily Living (ADL). Other benefits include: assisted living care; respite care; hospice care; adult day care.






23. Written contract to transfer risk of premature death from one party to another; pays stated sum upon death; creates instant estate.






24. Financial interest in insured party that must exist @ time of application OR policy issuance. Requires consent (except minors).






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






26. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






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






28. Allows for use of HMO/PPO or other private carrier to provide expanded benefits @ additional premium & if enrolled in BOTH Parts A & B.






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






30. Prevents overinsuring in order to profit from disability by coordinating benefits between Insurers.






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






32. Intentional deception; grounds for rescission.






33. Voiding an insurance contract based on fraud - concealment or material misrepresentation; premiums returned; policy treated as never existing.






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






35. Covers disabilities occurring both "on" AND "off" job; "on" job benefits paid in addition to work. comp. - if applicable (i.e. individual plan).






36. Part A - Inpatient hospital deductibles vary on # of days; limited reserve days; finite benefit; 1st 3 pints blood; Part B - 20% co-payment.






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






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






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






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






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






42. Provides for continued operation of business if partner becomes disabled - by allowing other partner(s) to buy disabled partner's interest in business.






43. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.






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






45. 4: Funds retained by Insurer until w/drawn - interest ONLY paid monthly (taxable); 5: Paid-up immediate annuity.






46. Extreme form of Limited Pay Whole Life whereby entire premium is paid in a single payment.






47. Application submitted w/out premium; no coverage until submission of full consideration & completed Statement of Continued Good Health.






48. Basic Medical; Major Medical; Comprehensive Major Medical






49. Process which prevents claim denial as a result of false statement or promise (made by Insurer) - which was relied upon by Insured.






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