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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. Permanent - not recoverable (spinal cord injury); Temporary - recoverable (temp. illness/injury - broken limb).






2. Receipt whereby coverage incepts ONLY after underwriting approval.






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






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






5. Excludes coverage for suicide during 1st 2 yrs. ONLY but - if it does - all premiums must be returned to beneficiary.






6. Physical - slippery floor; Moral - dishonest acts; Morale - carelessness or recklessness.






7. Agents - represent Insurer; Brokers - represent themselves & Insured; Solicitors - represent one agent to solicit leads.






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






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






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






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






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






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






14. Identical to Incontestable Clause in Life policy.






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






16. Waives premium upon disability of Insured until return to work; disability must persist for 6 mths. or longer. Cash value & dividends not affected.






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






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






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






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






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






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






23. Conditional - coverage is conditional; Personal - parties are people; Good faith - honesty/integrity; Fiduciary - req's financial trust.






24. Privately-sold policies to provide benefits not covered by Medicare; divided into 12 plans listed alphabetically A - L; 30-day free look; guaranteed renewable.






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






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






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






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






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






30. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)






31. Death benefit is NOT taxable. Cash value grows tax-deferred but cost basis (base premium) is not taxable - only interest is.






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






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






34. 1: Individual; 2: Joint - multiple annuitants paid until 1st dies; 3: Joint & Survivor - multiple annuitants paid until 1st dies THEN survivors paid but @ reduced $.






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






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






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






38. An attempt to contain costs by employing various strategies - including wellness programs - preventative testing - outpatient & alternative procedures.






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






40. 1: Immediate benefits rec'd w/in 30 days but premium must be paid by lump sum; 2: Deferred - usually until retirement.






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






42. Policy provisions must conform to state regulations where policy is sold.






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






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






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






46. Time extension of benefits based on "qualifying" event. 18 mth. extension if laid off or fired; 36 mth. extension if death - divorce or child leaves home.






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






48. Permanent disability due to total loss of sight - hearing - speech or use of 2 + limbs; benefits paid even while continuing to work.






49. 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.






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






Can you answer 50 questions in 15 minutes?



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