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






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






3. 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.






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






5. Federally-funded but state-run program for truly indigent individuals & families providing medical care at Federal clinic.






6. Federal law to protect Federal employees' (& their beneficiaries') pension - group insurance - & welfare benefits.






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






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






9. Periodic return of premium to policy owners from Mutual (Par) Companies; not guaranteed & not taxable as income; may be used in 6 ways.






10. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)






11. Group plan initially self-funded by employer (like SIR); after which - group plan Insurer covers (up to policy limit); requires TPA.






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






13. Plan A is the CORE benefit & is least expensive; All other plans include Plan A + additional benefits. Plans F & J are high deductible. K & L are both deductible & co-pay plans.






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






15. Basic Medical; Major Medical; Comprehensive Major Medical






16. 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.






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






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






19. Benefits NOT taxable; employer-paid premiums deductible to employer; individual plans not deductible unless over 7 1/2% of adjusted gross income - then excess deductible.






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






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






22. Provides for continued operation of business if partner becomes disabled - by allowing other partner(s) to buy disabled partner's interest in business.






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






24. 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.






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






26. 1: Fixed - guaranteed fixed monthly income & fixed interest rate; 2: Variable - unguaranteed; monthly income varies based on stocks/bond returns.






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






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






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






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






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






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






33. 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.






34. Same as WL but w/ adjustable death benefit (& corresponding premium) & over-fund option but w/ annually renewable term (ART).






35. Intentional deception; grounds for rescission.






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






37. Upon death - death benefit is paid + the aggregate of premiums paid to date; add-on to Term policy ONLY.






38. Business continuation funding plan whereby each partner agrees to buy Life policies on each other - but not themselves.






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






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






41. 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.






42. 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






43. Insurer has right to adjust (+ or -) death benefit if age or sex is misstated but normally doesn't void policy.






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






45. Tendency of poorer risks to seek insurance.






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






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






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






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






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







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