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






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






3. A&H - A&S - Sickness only; Medical; Disability; Accident only; Travel accident; LTC; Medicare supplement; AD&D; Dental/Vision/Prescription; Limited.






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






5. Allows for use of HMO/PPO or other private carrier to provide expanded benefits @ additional premium & if enrolled in BOTH Parts A & B.






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






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






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






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






10. Policy owner must notify Insurer of loss either in writing - in person or by phone w/in 20 days.






11. 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






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






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. 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.






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






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






17. Basic Medical; Major Medical; Comprehensive Major Medical






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






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






20. 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.






21. Temp. coverage for set duration w/ death benefit ONLY (no cash value) - offers largest $ for lowest premium; renewable; convertible.






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






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






24. Same as WL but policy owner can adjust death benefit w/ corresponding premium adjustments; mostly obsolete.






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






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






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






28. Death benefit is NOT taxable. Cash value grows tax-deferred but cost basis (base premium) is not taxable - only interest is.






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






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






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






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






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






34. Price of insurance per exposure unit.






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






36. If 2 or more family members are injured in the same accident - only payment of a single deductible is required.






37. 1: Individual; 2: Joint - multiple annuitants paid until 1st dies; 3: Joint & Survivor - multiple annuitants paid until 1st dies THEN survivors paid but @ reduced $.






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






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






40. 'The inability to perform your OWN normal occupation or daily duties'.






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






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






43. Intentional deception; grounds for rescission.






44. Allows for Term policy renewal @ higher premium w/out medical exam; guarantees insurability; based on actual/attained age.






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






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






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






48. Excludes coverage for specific injury/illness either temporarily or permanently in order to eliminate pre-existing condition.






49. Receipt whereby coverage incepts conditionally upon submission of full consideration and that all underwriting reqs. are met.






50. 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.