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. 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.






2. Req. by CA statute & may provide workers coverage for action-over claims.






3. Provides % of monthly income benefit if Insured becomes disabled due to illness or accident.






4. Commercial (private) companies; HMOs; PPOs; Blue Cross/Blue Shield; Employer-sponsored plans; Government.






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






6. Employer w/ 25 or less employees must offer all eligible employees @ least 2 medical plan options where pre-existing conditions can't be excluded more than 1 yr.






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






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






9. Prepaid med. benefits for "subscribers" @ approved facilities; many non-profit; Blue Cross - Hospital stays; Blue Shield - M.D. costs.






10. 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






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






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






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






14. 'The inability to perform ANY gainful occupation'.






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






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






17. A lapsed policy may be reinstated if not longer than 3-5 yrs. - & proof of insurability re-established - & back premiums + interest paid.






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






19. Covers disabilities occurring both "on" AND "off" job; "on" job benefits paid in addition to work. comp. - if applicable (i.e. individual plan).






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






21. Basic Medical; Major Medical; Comprehensive Major Medical






22. Prepaid med. benefits for members ONLY w/ approved primary care M.D. (HMO employee); focus on preventative care; low co-pay.






23. Preferred or Preferred Smoker; Standard or Standard Smoker; Substandard; Denied.






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






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






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






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






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






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






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






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






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






34. Prevents overinsuring in order to profit from disability by coordinating benefits between Insurers.






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






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






37. 'The inability to perform ANY reasonable occupation based on education - training or experience'.






38. Grows @ fixed min. interest rate but w/ possible higher rate tied to equity index (i.e S&P Equity Index) appreciation; gains shared w/ Insurer.






39. Permanent - not recoverable (spinal cord injury); Temporary - recoverable (temp. illness/injury - broken limb).






40. Part A - Inpatient hospital deductibles vary on # of days; limited reserve days; finite benefit; 1st 3 pints blood; Part B - 20% co-payment.






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






42. Allows policy owner to w/draw set % of death benefit upon verification of terminal illness w/ expectancy 12-24 mths.; generally tax-free.






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






44. 1: Individual; 2: Joint - multiple annuitants paid until 1st dies; 3: Joint & Survivor - multiple annuitants paid until 1st dies THEN survivors paid but @ reduced $.






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






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






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






48. Waives premium upon disability of Insured until return to work; disability must persist for 90 days or longer; 1st 90 day premiums refunded after 90 days.






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






50. 4: Funds retained by Insurer until w/drawn - interest ONLY paid monthly (taxable); 5: Paid-up immediate annuity.