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






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






3. A company providing lump sum buyout (50-90% of total) of Life policy; becomes owner & beneficiary & assumes premium payments; usually terminally ill viator.






4. Compensates business for loss due to disability of key employee; premiums not deductible but benefits tax-free.






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






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






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






8. Fraternal - non-profit - members only; Reciprocal - unincorp'd org. - members insure each other; Lloyd's Assoc. - groups sharing risks; Surplus lines - special market risks.






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






10. War/Military; Intentional self-inflicted; Aviation (non-commercial); Foreign country; Loss of professional license; Illegal activity; Mental disorders (after 1-2 yrs.).






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






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






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






14. 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.






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






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






17. Beneficiary has right to leave death benefits / Insurer to protect $ from creditors; interest (taxable) paid on retained funds.






18. Responsible adult trustee designated to manage death benefits for minor child beneficiary until adulthood.






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






20. 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.






21. Federal law allows employees/their dependents to continue group benefits w/in 60 days after termination (if employer has 20+ employees); Insured pays premium @ 102% of group cost.






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






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






24. 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.






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






26. 4: Funds retained by Insurer until w/drawn - interest ONLY paid monthly (taxable); 5: Paid-up immediate annuity.






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






28. 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.






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






30. Insured can seek legal action against Insurer for denial of claim only after 60 days and up to 3 yrs. after providing proof of loss.






31. Provides professional services - rehabilitation - training/re-training & related costs to assist Insured in returning to work.






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






33. No-charge annuity w/drawals allowed up to 10% of total - THEN penalized on sliding scale based on # policy yrs.; conditionally waived.






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






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






36. If Insured changes to: more hazardous job - benefits reduced; less hazardous job - premiums reduce.






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






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






39. Process which prevents claim denial as a result of false statement or promise (made by Insurer) - which was relied upon by Insured.






40. Multiple small employers w/ common affiliation (trade assoc. OR Chamber of Commerce) band together to purchase group plan.






41. Compensates business for loss due to death or disability of key employee; premiums not deductible but benefits tax-free.






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






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






44. 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;






45. WL policy covering 2 or more Insureds but ONLY payable upon death of LAST Insured - generally low premium but high death benefit.






46. Provides accidental death benefit @ full $ of "principal sum". Dismemberment is paid only @ 50% principal sum ("capital sum").






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






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






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






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