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






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






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






4. Federal law which prohibits companies w/ 15+ employees from decreasing coverage benefits for women affected by pregnancy or childbirth.






5. 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.






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






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






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






9. Domestic - within home state; Foreign - outside home state; Alien - outside home country.






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






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






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






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






14. Unintentional - up to $1 -000 + legal $; Intentional - $1 -000-5 -000 + legal $; If harmful - misdemeanor + up to 1 yr. prison + up to $10 -000.






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






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






17. Intentional deception; grounds for rescission.






18. Taxable income (unlike individual plans); can be either short-term - 13-52 wks. max. or long-term - longer than 52 wks.






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






20. If Insured & primary beneficiary die due to same act (w/in 14 days) - primary assumed 1st to die & contingent beneficiary paid death benefit.






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






22. If Insured changes to: more hazardous job - benefits reduced; less hazardous job - premiums reduce.






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






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






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






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






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






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






29. Same as Term Life but provides living benefit (endowment) to policy owner if Insured survives entire term.






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






31. WL policy covering 2 or more Insureds but ONLY payable upon death of LAST Insured - generally low premium but high death benefit.






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






33. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






34. Agents - represent Insurer; Brokers - represent themselves & Insured; Solicitors - represent one agent to solicit leads.






35. Dividends are NOT taxable but interest is. Loan interest is NOT tax-deductible. Interest paid by Insurer on retained funds is taxable.






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






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






38. 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.






39. 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.






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






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






42. 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.






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






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






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






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






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






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






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






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