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






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






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






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






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






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






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






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






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






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






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






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






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






16. 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;






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






18. Level - fixed death benefit - premium fixed until renewal; Decreasing - death benefit decreases over term - premium fixed until renewal; Increasing - death benefit increases over term - premium fixed until renewal.






19. Pre-existing illness/injury; Waiting period; Elimination period; Probationary period; Benefits - Exclusions - Limitations; Underwriting reqs.






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






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






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






23. 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.






24. Same as WL but death benefit decreases each yr. w/ dividends paid annually to offset decrease.






25. Financial interest in insured party that must exist @ time of application OR policy issuance. Requires consent (except minors).






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






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






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






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






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






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






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






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






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






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






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






37. 1: Fixed - guaranteed fixed monthly income & fixed interest rate; 2: Variable - unguaranteed; monthly income varies based on stocks/bond returns.






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






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






40. Same as WL but w/ Decreasing Term rider; upon death - pays monthly income for REMAINING term AFTER which pays full death benefit.






41. Prohibited w/ regard to testing for people of same class; test results must remain confidential; coverage may be declined (once discovered).






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






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






44. Accumulation or "pay-in" - contributions & interest earned are tax-deferred; Annuity or "pay-out" - monthly annuity (taxable) paid.






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






46. Waives premium on Life policy for minor child until age 21 in event premium payor dies or becomes disabled.

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






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






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






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