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. Part of IRS Section 125 cafeteria plan - which allows pre-tax payroll deductions for qualified medical expenses or child/dependent care.






2. Must be delivered in person or by certified - registered or 1st-class mail w/ signature - unless waived by Insurance Commissioner.






3. Underwriting - determines insurability; Marketing/Sales - determines products; Actuarial - determines rates; Claims - investigates/pays claims.






4. Policy owner has right to determine mode of premium payment but Insurer can charge admin. fee if not annual.






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






6. Price of insurance per exposure unit.






7. 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.






8. Annuity distributions prior to age 59 1/2 incur a 10% IRS penalty EXCEPT for death - disability - immediate annuity - or rollover.






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






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






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






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






13. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)






14. An attempt to contain costs by employing various strategies - including wellness programs - preventative testing - outpatient & alternative procedures.






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






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






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






18. Dividends are NOT taxable but interest is. Loan interest is NOT tax-deductible. Interest paid by Insurer on retained funds is taxable.






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






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






21. 1: mortality probability charge; 2: Insurer's investment return; 3: expenses (admin costs - commissions). 1 - 2 = net; 1 - 2 + 3 = gross.






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






23. 1: Individual; 2: Joint - multiple annuitants paid until 1st dies; 3: Joint & Survivor - multiple annuitants paid until 1st dies THEN survivors paid but @ reduced $.






24. Same as WL but premium low for set # yrs. - THEN premiums vary (+ or -) based on Insurer's investment returns - w/ Gmax.






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






26. Basic Medical; Major Medical; Comprehensive Major Medical






27. 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.






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






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






30. Two death benefit options - Option A: death benefit ONLY; Option B: death benefit + cash value; death benefit NOT guaranteed.






31. Same as WL but premium low for 1st 3-5 yrs. - THEN has one-time premium increase.






32. 1: Fixed - guaranteed fixed monthly income & fixed interest rate; 2: Variable - unguaranteed; monthly income varies based on stocks/bond returns.






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






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






35. Benefits automatically increase annually based on inflationary index (i.e. Consumer Price Index) OR flat rate (5% max.).






36. Primary - if 2 or more - equally shared; Contingent (Secondary) - only if primary dead; Tertiary - only if both primary & secondary dead. If none listed - goes to estate.






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






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






39. Summary of coverage including premium & mode of payment - death benefit - beneficiary(ies) - exclusions - & promise to pay.






40. Federal program financed by payroll taxes provided equally by both employer & employee OR entirely by individual (if self-employed). Provides benefits for: Medicare @ age 65+; retirement; $255 lump sum death benefit; (limited) disability; survivors;






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






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






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






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






45. Written contract to transfer risk of premature death from one party to another; pays stated sum upon death; creates instant estate.






46. Provides supplemental coverage for physician/surgeon fees if enrolled (during enrollment period ONLY) & pay monthly premium w/ deductible and co-insurance.






47. Insurer has right to rescind policy & return premium if material misrepresentation in application is found w/in 1st 2 yrs.






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






49. No coverage for injuries while: 1: @ voluntary social event; 2: self-inflicted (intentional); 3: under alcohol/drug influence; 4: committing criminal act; 5: aggressor in workplace fight; 6: participating in athletic event (non-pro. athletes) 7: par






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