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






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






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






4. Insurer has right to rescind policy & return premium if material misrepresentation in application is found w/in 1st 2 yrs.






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






6. Policy owner has right to determine mode of premium payment but Insurer can charge admin. fee if not annual.






7. Benefits NOT taxable; employer-paid premiums deductible to employer; individual plans not deductible unless over 7 1/2% of adjusted gross income - then excess deductible.






8. Process whereby a reinsurer reinsures w/ another reinsurer.






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






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






11. Intentional deception; grounds for rescission.






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






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






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






15. Mandatory 100% employer-funded coverage for injuries/illnesses occurring "on" job; full-time employees only; exclusive remedy. Provides: 1: unlimited medical benefit; 2: survivor income replacement & funeral ($5 -000 max.); 3: disability benefit @ 66

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






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






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






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






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






21. Same as WL but can be "paid-up" early by paying larger premium for shorter payment period (i.e. 10 Pay Life - 20 Pay Life).






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






23. Available for any reason up to full cash value @ fixed (max 8%) OR variable interest rate; loan $ + interest deducted from benefit @ death.






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






25. No-cost provision that authorizes Insurer to borrow from cash value to pay unpaid premiums after grace period; must ask for @ app. time.






26. WL policy covering 2 or more Insureds but payable upon death of FIRST Insured - after which policy ends.






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






28. Non-qualified Annuity - Non-deductible contributions & tax-deferred growth. At pay-out - tax-free principal but taxable growth.






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






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






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






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






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






34. Time extension of benefits based on "qualifying" event. 18 mth. extension if laid off or fired; 36 mth. extension if death - divorce or child leaves home.






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






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






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






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






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






40. Partially state-funded benefits for low-income people whereby cost of care is shared between state & recipient - based on income.






41. Generally 10 days after policy delivery to cancel policy w/ full refund - except 30 days for seniors or for replacement policies.






42. Insured can seek legal action against Insurer for denial of claim only after 60 days and up to 3 yrs. after providing proof of loss.






43. 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.






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






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






46. 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.






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






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






49. Provides 24 hr. health coverage both "on" & "off" job - but may cause coverage duplication & coordination challenges.






50. Same as Comprehensive Major Medical but w/ integrated deductible; much more expensive.