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. Private sector (Commercial) - provides LA&H - P&C - & LTC; Public sector (Gov't) - provides flood - work. comp. - Medicare/Medicaid - Group Life (SGLI/FEGLI).






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






3. 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.






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






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






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






7. Combination of Basic Medical & Major Medical in one policy; Basic pays 1st - then Major Medical w/ corridor deductible.






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






9. Palliative - treatment to manage pain; Curative - treatment to cure illness/condition.






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






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






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






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






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






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






16. Insurance purchased by other Insurer(s) to spread or diversify risk; promotes industry stability.






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






18. Accumulation or "pay-in" - contributions & interest earned are tax-deferred; Annuity or "pay-out" - monthly annuity (taxable) paid.






19. Pre-existing illness/injury; Waiting period; Elimination period; Probationary period; Benefits - Exclusions - Limitations; Underwriting reqs.






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






21. Intentional deception; grounds for rescission.






22. Level - fixed death benefit - premium fixed until renewal; Decreasing - death benefit decreases over term - premium fixed until renewal; Increasing - death benefit increases over term - premium fixed until renewal.






23. 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.






24. Responsible adult trustee designated to manage death benefits for minor child beneficiary until adulthood.






25. Provides usual & customary business expenses (rent - utilities - salaries - mortgage) if owner becomes disabled; premiums deductible - benefits taxable.






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






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






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






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






30. 1: mortality probability charge; 2: Insurer's investment return; 3: expenses (admin costs - commissions). 1 - 2 = net; 1 - 2 + 3 = gross.






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






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






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






34. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






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






36. Basic Medical; Major Medical; Comprehensive Major Medical






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






38. Covers entire family w/ WL for breadwinner & (convertible) Level Term for spouse & children (until certain age).






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






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






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






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






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






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






45. Provides for continued operation of business if partner dies - by allowing surviving partner(s) to buy deceased partner's interest in business.






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






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






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






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






50. 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.