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. Facultative - case by case agreements; Automatic/Treaty - automatic acceptance of risk percentage per previous agreement.






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






3. Monthly; Quarterly; Semi-annually; Annually (cheapest due to less admin cost).






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






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






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






7. Revocable - changeable anytime w/ Change of Beneficiary Form; Irrevocable - not changeable w/out beneficiary permission.






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






9. Govt. organization providing health care benefits for dependents of military personnel.






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






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






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






13. Domestic - within home state; Foreign - outside home state; Alien - outside home country.






14. 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.






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






16. No deductible coverage for: daily room/board; ancillary costs; surgeon &/or physician expense (for added premium).






17. Receipt whereby coverage incepts immediately upon submission of full consideration - unless declined & premium refunded.






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






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






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






21. 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.






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






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






24. Excludes coverage for suicide during 1st 2 yrs. ONLY but - if it does - all premiums must be returned to beneficiary.






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






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






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






28. IRS allows tax-free transfer of cash values between 2 LIKE policies (i.e. Life to Life - Annuity to Annuity - or Life to Annuity).






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






30. Info already known; Info that should have been known; Waived info; Irrelevant info.






31. 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.






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






33. 1: Cash (tax-free); 2: Apply to future premiums; 3: Retained by Insurer @ interest; 4: Buy Paid-up WL policy add-ons; 5: Pay-up existing policy; 6: Buy 1-yr. Term policy.






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






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






36. 4: Funds retained by Insurer until w/drawn - interest ONLY paid monthly (taxable); 5: Paid-up immediate annuity.






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






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






39. Intentional deception; grounds for rescission.






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






41. Potential circumstance that could cause a loss; measured in dollars.






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






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






44. Pays death benefit until age 100 or death; builds equity (cash value); may be transferred or sold; generally level premium.






45. Actual/Expressed - written powers; Implied - unwritten but customary practices; Apparent - perceived powers.






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






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






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






49. Permanent disability due to total loss of sight - hearing - speech or use of 2 + limbs; benefits paid even while continuing to work.






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