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






2. Multiple small employers w/ common affiliation (trade assoc. OR Chamber of Commerce) band together to purchase group plan.






3. 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.






4. Guaranteed min. interest rate on cash value buildup but possible higher rate if short-term investment returns higher than expected.






5. 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.






6. After 2-3 yrs. - Whole Life policy equity builds tax-deferred @ fixed interest rate until it equals death benefit; borrowable but taxable.






7. Experience - rates impacted by actual prior claim experience of actual group; Community - identical rates used for entire community - regardless of experience.






8. Private sector (Commercial) - provides LA&H - P&C - & LTC; Public sector (Gov't) - provides flood - work. comp. - Medicare/Medicaid - Group Life (SGLI/FEGLI).






9. Policyholders - Mutual (participating) co. - may pay dividends; Stockholders - Stock (non-participating) co. - no dividends.






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






11. Allows Term policy conversion to Permanent policy w/out medical exam; must be identical or lower death benefit; based on either attained OR original age.






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






13. Pure risk involves chance of loss ONLY (accident or misfortune). Speculative risk involves chance of loss OR gain (gambling - stock investment).






14. 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).






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






16. Federally-sponsored health care for individuals 65+ &/or w/ certain disabilities; may run concurrent w/ group plan but group plan would act primary - THEN Medicare.






17. Expands individual WL policy to include Term Life for dependents (spouse - children - etc.).






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






19. Coverage for catastrophic loss w/ high limits - front end deductible; co-insurance (80/20%); blanket coverage; stop loss max.






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






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






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






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






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






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






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






27. Coverage remains in effect for 31 days past premium due date; benefits paid during grace period would be deducted from sum.






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






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






30. Identical to Incontestable Clause in Life policy.






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






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






33. Upon notice - Insurer must provide Claim Form (Proof of Loss Form) to Insured w/in 15 days.






34. Mathematical calculation based on overall FICA contributions used to determine retirement/disability/survivorship benefit.






35. Physical - slippery floor; Moral - dishonest acts; Morale - carelessness or recklessness.






36. 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.






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






38. Representation - oral or written statement made to best of knowledge or belief; Warranty - statement guaranteed/presumed/understood to be true.






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






40. 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.






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






42. Responsible adult trustee designated to manage death benefits for minor child beneficiary until adulthood.






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






44. Mathematical law stating the larger # of occurrences - the more predictable the losses; used to calculate premiums.






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






46. Fixed premium w/ guaranteed min. death benefit that may increase due to higher than expected investment returns.






47. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






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






49. 1: mortality probability charge; 2: Insurer's investment return; 3: expenses (admin costs - commissions). 1 - 2 = net; 1 - 2 + 3 = gross.






50. Unintentional - up to $1 -000 + legal $; Intentional - $1 -000-5 -000 + legal $; If harmful - misdemeanor + up to 1 yr. prison + up to $10 -000.