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






2. Expands individual WL policy to include Term Life for dependents (spouse - children - etc.).






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






4. 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.






5. Same as WL but cash value increases @ current interest rates (not set); premium can start low or high & may change.






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






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






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






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






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






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






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






13. Primary - if 2 or more - equally shared; Contingent (Secondary) - only if primary dead; Tertiary - only if both primary & secondary dead. If none listed - goes to estate.






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






15. Permanent - not recoverable (spinal cord injury); Temporary - recoverable (temp. illness/injury - broken limb).






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






17. Tendency of poorer risks to seek insurance.






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






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






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






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






22. Insurer has right to adjust (+ or -) death benefit if age or sex is misstated but normally doesn't void policy.






23. Mandatory 100% employer-funded coverage for injuries/illnesses occurring "on" job; full-time employees only; exclusive remedy. Provides: 1: unlimited medical benefit; 2: survivor income replacement & funeral ($5 -000 max.); 3: disability benefit @ 66

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


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






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






26. Federal law which prohibits companies w/ 20+ employees from denying work & medical benefits to employees due to age.






27. Federal program financed by payroll taxes provided equally by both employer & employee OR entirely by individual (if self-employed). Provides benefits for: Medicare @ age 65+; retirement; $255 lump sum death benefit; (limited) disability; survivors;






28. Receipt whereby coverage incepts ONLY after underwriting approval.






29. Physical - slippery floor; Moral - dishonest acts; Morale - carelessness or recklessness.






30. Pure risk involves chance of loss ONLY (accident or misfortune). Speculative risk involves chance of loss OR gain (gambling - stock investment).






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






32. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






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






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






35. Both Contributory & Non-contributory Group policies are deductible to employer (not employee) but benefits are taxable. Individual policy premium is NOT deductible but benefit is received tax-free.






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






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






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






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






40. Intentional deception; grounds for rescission.






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






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






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






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






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






46. Time extension of benefits based on "qualifying" event. 18 mth. extension if laid off or fired; 36 mth. extension if death - divorce or child leaves home.






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






48. Policy covering minor child; premium fixed but death benefit increases by 5 times @ age 18 or 21.






49. Part of IRS Section 125 cafeteria plan - which allows pre-tax payroll deductions for qualified medical expenses or child/dependent care.






50. Waives premium upon disability of Insured until return to work; disability must persist for 6 mths. or longer. Cash value & dividends not affected.