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






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






3. Receipt whereby coverage incepts ONLY after underwriting approval.






4. Insurer has right to adjust (+ or -) death benefit if age or sex is misstated but normally doesn't void policy.






5. Voiding an insurance contract based on fraud - concealment or material misrepresentation; premiums returned; policy treated as never existing.






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






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






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






9. A&H - A&S - Sickness only; Medical; Disability; Accident only; Travel accident; LTC; Medicare supplement; AD&D; Dental/Vision/Prescription; Limited.






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






11. 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.






12. Savings account for medical expenses; Tax-deductible contributions; tax-deferred growth; tax-free for qualified use; taxable for non-qualified use.






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






14. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






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






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






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






18. 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.






19. Term Life policy w/ decreasing death benefit; usually used to secure credit (loan) w/ lender as beneficiary & borrower as Insured.






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






21. Provides benefit during Social Security "black-out" period - up to 1 yr.






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






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






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






25. Disability income is based on "earned income" (salary - bonus - commission) - not unearned income (interest - investment - rents).






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






27. Conditional - coverage is conditional; Personal - parties are people; Good faith - honesty/integrity; Fiduciary - req's financial trust.






28. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






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






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






32. Excludes coverage for specific injury/illness either temporarily or permanently in order to eliminate pre-existing condition.






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






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






35. Dependent children are covered until 19 or 23 (full-time student only) or until self-sufficient (if handicapped).






36. Covers disabilities occurring ONLY "off" job; benefits do not overlap work. comp. (i.e. Group plan).






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






38. 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.






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






40. 1: Straight aka Pure Life - lifetime income but no survivorship refund; 2: Life w/ Period Certain - lifetime income w/ death benefit of monthly annuity for remaining predetermined term. 3: Annuity Certain - monthly income paid for predetermined term






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






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






43. Same as WL but death benefit increases annually - linked to Consumer Price Index; premium increases annually OR is set high from start.






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






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






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






47. Written contract that provides INCOME @ high interest rate for fixed period OR for annuitant's lifetime w/ possible death benefit.






48. Intentional deception; grounds for rescission.






49. 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.






50. Federally-funded but state-run program for truly indigent individuals & families providing medical care at Federal clinic.