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






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






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






4. Allows Insured to increase benefit w/out medical exam (subject to age max.) w/ additional premium rate determined @ attained age; must prove income increase.






5. Partially state-funded benefits for low-income people whereby cost of care is shared between state & recipient - based on income.






6. 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;






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






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






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






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






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






12. Disability policy rider covering "the inability to perform some - but not all of your duties"; pays max. 50% of disability benefit for up to 6 mths.






13. 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.






14. Provides % of monthly income benefit if Insured becomes disabled due to illness or accident.






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






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






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






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






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






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






21. Prepaid med. benefits for members w/ approved primary care M.D. (independent); low co-pay; non-PPO M.D. can be used at higher cost.






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






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






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






25. Premiums determined by target cash values or death benefit; partial cash value w/drawals allowed; transparent policy w/ unbundled premium.






26. 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.






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






28. Policy owner has 90 days from date of loss to submit proof of loss to Insurer; valid claim must be paid immediately upon receipt.






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






30. Pure risk involves chance of loss ONLY (accident or misfortune). Speculative risk involves chance of loss OR gain (gambling - stock investment).






31. 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.






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






33. To "make whole again" w/out benefit or detriment; neither monetary profit nor loss.






34. Part A - Inpatient hospital deductibles vary on # of days; limited reserve days; finite benefit; 1st 3 pints blood; Part B - 20% co-payment.






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






36. Authorized (admitted) - can conduct business in state; Unauthorized (non-admitted) - cannot conduct business in state (w/ one exception).






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






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






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






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






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






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






43. Combination of Basic Medical & Major Medical in one policy; Basic pays 1st - then Major Medical w/ corridor deductible.






44. Same as Comprehensive Major Medical but w/ integrated deductible; much more expensive.






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






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






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






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






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. Non-qualified Annuity - Non-deductible contributions & tax-deferred growth. At pay-out - tax-free principal but taxable growth.