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. Price of insurance per exposure unit.






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






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






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






5. Reappearance of disability w/in 6 mth. period after "recovery" from same disability is considered recurrence - not new disability.






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






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






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






9. Privately-sold policies to provide benefits not covered by Medicare; divided into 12 plans listed alphabetically A - L; 30-day free look; guaranteed renewable.






10. Life license + NASD (FINRA) Series 6 or 7.






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






12. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






13. Employer w/ 25 or less employees must offer all eligible employees @ least 2 medical plan options where pre-existing conditions can't be excluded more than 1 yr.






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






15. Provides accidental death benefit @ full $ of "principal sum". Dismemberment is paid only @ 50% principal sum ("capital sum").






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






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






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






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






20. Provides accidental death benefit @ full $ of "principal sum". Dismemberment is paid only @ 50% principal sum ("capital sum").






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






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






23. Same as WL but premium low for 1st 5 yrs. - THEN has annual premium increases for set # yrs. - THEN level premium.






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






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






26. After 2-3 yrs. - Whole Life policy equity builds tax-deferred @ fixed interest rate until it equals death benefit; borrowable but taxable.






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






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






29. 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.






30. Basic Medical; Major Medical; Comprehensive Major Medical






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






32. 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.






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






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






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






36. Policy provisions must conform to state regulations where policy is sold.






37. 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;






38. Benefits automatically increase annually based on inflationary index (i.e. Consumer Price Index) OR flat rate (5% max.).






39. 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.






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






41. If total premiums paid w/in 1st 7 yrs. exceed net level premium that should have been paid - policy is an MEC.






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






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






44. 4: Funds retained by Insurer until w/drawn - interest ONLY paid monthly (taxable); 5: Paid-up immediate annuity.






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






46. 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.






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






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






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






50. Same as WL but premium low for 1st 3-5 yrs. - THEN has one-time premium increase.