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






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






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






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






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






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






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






8. Price of insurance per exposure unit.






9. 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.






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






11. Application submitted w/out premium; no coverage until submission of full consideration & completed Statement of Continued Good Health.






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






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






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






15. 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.






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






17. 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.






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






19. 1: Individual; 2: Joint - multiple annuitants paid until 1st dies; 3: Joint & Survivor - multiple annuitants paid until 1st dies THEN survivors paid but @ reduced $.






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






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






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






23. Same as WL but can be "paid-up" early by paying larger premium for shorter payment period (i.e. 10 Pay Life - 20 Pay Life).






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






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






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






27. Written contract that provides INCOME @ high interest rate for fixed period OR for annuitant's lifetime w/ possible death benefit.






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






29. 1: Req. - unless self-employed; 2: 7-day wait for disability benefits; 3: Premium based on ex-mod; 4: Rates approved by CDI; 5: to sell - must satisfy education reqs.






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






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






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






33. Identical to Incontestable Clause in Life policy.






34. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






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






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






37. Mathematical law stating the larger # of occurrences - the more predictable the losses; used to calculate premiums.






38. Grows @ fixed min. interest rate but w/ possible higher rate tied to equity index (i.e S&P Equity Index) appreciation; gains shared w/ Insurer.






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






40. Upon notice - Insurer must provide Claim Form (Proof of Loss Form) to Insured w/in 15 days.






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






42. Policy covering minor child; premium fixed but death benefit increases by 5 times @ age 18 or 21.






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






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






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






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. Treating or mitigating loss exposures through 1: avoidance; 2: retention (deductibles); 3: sharing; 4: reduction; or 5: transfer.






48. 1: Immediate benefits rec'd w/in 30 days but premium must be paid by lump sum; 2: Deferred - usually until retirement.






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






50. Monthly; Quarterly; Semi-annually; Annually (cheapest due to less admin cost).