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. Experience - rates impacted by actual prior claim experience of actual group; Community - identical rates used for entire community - regardless of experience.






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






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






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






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






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






7. Identical to Incontestable Clause in Life policy.






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






9. War; elective cosmetic surgery; routine dental; work. comp.-covered claims; self-inflicted (intentional); gov't. facility treatment; LTC; private nursing.






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






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






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






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






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






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






16. Allows Term policy conversion to Permanent policy w/out medical exam; must be identical or lower death benefit; based on either attained OR original age.






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






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






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






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






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






22. Hybrid of HMO & PPO w/ greater flexibility on choosing specialists outside network w/ benefits still provided but @ higher co-pay.






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






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






25. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)






26. 4: Funds retained by Insurer until w/drawn - interest ONLY paid monthly (taxable); 5: Paid-up immediate annuity.






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






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






29. Prohibited w/ regard to testing for people of same class; test results must remain confidential; coverage may be declined (once discovered).






30. 1: parties to contract; 2: insured party or life; 3: insurable interest - if 3rd party; 4: risks insured against; 5: policy period (term); 6: premium & mode.






31. Mathematical calculation based on overall FICA contributions used to determine retirement/disability/survivorship benefit.






32. Same as WL but w/ Level Term rider; upon death - pays monthly income for FULL term AFTER which pays full death benefit.






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






34. Federal law allows employees/their dependents to continue group benefits w/in 60 days after termination (if employer has 20+ employees); Insured pays premium @ 102% of group cost.






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






36. 1: Cash (tax-free); 2: Apply to future premiums; 3: Retained by Insurer @ interest; 4: Buy Paid-up WL policy add-ons; 5: Pay-up existing policy; 6: Buy 1-yr. Term policy.






37. Written policy terms supersede oral statements made prior to policy issue.






38. 'The inability to perform ANY gainful occupation'.






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






40. Privately-provided or Medicare-provided (if no private carrier) prescription drug plans for qualified individuals but w/ premium - deductible & co-pay.






41. 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.






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






43. Time period preceding each disability during which benefits are not paid; longer elimination periods = cheaper premium.






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






45. Prepaid med. benefits for "subscribers" @ approved facilities; many non-profit; Blue Cross - Hospital stays; Blue Shield - M.D. costs.






46. Actual/Expressed - written powers; Implied - unwritten but customary practices; Apparent - perceived powers.






47. 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.






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






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






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