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. 1: Immediate benefits rec'd w/in 30 days but premium must be paid by lump sum; 2: Deferred - usually until retirement.






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






3. Coverage for catastrophic loss w/ high limits - front end deductible; co-insurance (80/20%); blanket coverage; stop loss max.






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






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






6. Grows @ fixed min. interest rate but w/ possible higher rate tied to equity index (i.e S&P Equity Index) appreciation; gains shared w/ Insurer.






7. Revocable - changeable anytime w/ Change of Beneficiary Form; Irrevocable - not changeable w/out beneficiary permission.






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






9. Intentional deception; grounds for rescission.






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






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






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






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






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






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






16. Waives premium upon disability of Insured until return to work; disability must persist for 90 days or longer; 1st 90 day premiums refunded after 90 days.






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






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






19. Tendency of poorer risks to seek insurance.






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






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






22. Allows Insured to increase death benefit w/out medical exam (subject to age max.) w/ additional premium rate determined @ attained age.






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






24. Qualified Annuity - Tax-deductible contributions & tax-deferred growth but fully taxable w/drawals.






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






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






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






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






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






30. Any person - assoc. - org. - partnership - business trust - LLC - or corp. capable of making an insurance contract.






31. Authorized (admitted) - can conduct business in state; Unauthorized (non-admitted) - cannot conduct business in state (w/ one exception).






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






33. 1: mortality probability charge; 2: Insurer's investment return; 3: expenses (admin costs - commissions). 1 - 2 = net; 1 - 2 + 3 = gross.






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






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






36. Group plan initially self-funded by employer (like SIR); after which - group plan Insurer covers (up to policy limit); requires TPA.






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






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






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






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






41. Commercial (private) companies; HMOs; PPOs; Blue Cross/Blue Shield; Employer-sponsored plans; Government.






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






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






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






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






46. 1: Individual; 2: Joint - multiple annuitants paid until 1st dies; 3: Joint & Survivor - multiple annuitants paid until 1st dies THEN survivors paid but @ reduced $.






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






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






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






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