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. 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.






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






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






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






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






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






7. Agents - represent Insurer; Brokers - represent themselves & Insured; Solicitors - represent one agent to solicit leads.






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






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






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






11. Intentional OR unintentional failure to disclose material underwriting facts that should have been disclosed; grounds for policy rescission.






12. To "make whole again" w/out benefit or detriment; neither monetary profit nor loss.






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






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






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






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






17. 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.






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






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






20. Refund of 50-80% of premium (minus claims paid) every 5-10 yrs. OR age 65; expensive!






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






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






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






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






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






26. Basic Medical; Major Medical; Comprehensive Major Medical






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






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






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






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






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






32. No coverage for injuries while: 1: @ voluntary social event; 2: self-inflicted (intentional); 3: under alcohol/drug influence; 4: committing criminal act; 5: aggressor in workplace fight; 6: participating in athletic event (non-pro. athletes) 7: par






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






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






35. Death benefit determined by Insured's projected lost earnings potential.






36. 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.






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






38. A company providing lump sum buyout (50-90% of total) of Life policy; becomes owner & beneficiary & assumes premium payments; usually terminally ill viator.






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






40. 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.






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






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






43. Must be delivered in person or by certified - registered or 1st-class mail w/ signature - unless waived by Insurance Commissioner.






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






45. 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.






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






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






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






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






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