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. No-charge annuity w/drawals allowed up to 10% of total - THEN penalized on sliding scale based on # policy yrs.; conditionally waived.






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






3. 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.






4. 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.






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






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






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






8. 1: Fixed - guaranteed fixed monthly income & fixed interest rate; 2: Variable - unguaranteed; monthly income varies based on stocks/bond returns.






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






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






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






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






14. Same as WL but death benefit decreases each yr. w/ dividends paid annually to offset decrease.






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






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






17. Agreement - Offer & acceptance; Consideration - application + premium; Legal capacity - licensed &/or competent; Legal purpose - public good.






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






19. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






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






21. Price of insurance per exposure unit.






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






23. Beneficiary has right to leave death benefits / Insurer to protect $ from creditors; interest (taxable) paid on retained funds.






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






25. Unilateral - Insurer provides contract; Adhesion - parties must adhere to terms; Aleatory - benefits may not inure equally.






26. Earned premium is $ paid for coverage to date. Unearned premium is $ paid & returnable due to coverage not provided.






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






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






29. Group plan initially self-funded by employer (like SIR); after which - group plan Insurer covers (up to policy limit); requires TPA.






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






31. 1: Individual; 2: Joint - multiple annuitants paid until 1st dies; 3: Joint & Survivor - multiple annuitants paid until 1st dies THEN survivors paid but @ reduced $.






32. Qualified Annuity - Tax-deductible contributions & tax-deferred growth but fully taxable w/drawals.






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






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






35. 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.






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






37. WL policy covering 2 or more Insureds but ONLY payable upon death of LAST Insured - generally low premium but high death benefit.






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






39. 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).






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






41. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






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






43. Provides medical & personal services for people needing extended assistance w/ Activities of Daily Living (ADL). Other benefits include: assisted living care; respite care; hospice care; adult day care.






44. Upon death - death benefit is paid + the aggregate of cash value accumulated to date; add-on to WL policy ONLY.






45. An irrevocable IRS classification of a policy (determined by the 7 Pay Test) whereby tax advantages are lost for all distributions ONLY.






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






47. 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.






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. 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.