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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. 1: mortality probability charge; 2: Insurer's investment return; 3: expenses (admin costs - commissions). 1 - 2 = net; 1 - 2 + 3 = gross.






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






3. Receipt whereby coverage incepts ONLY after underwriting approval.






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






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






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






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






8. Info already known; Info that should have been known; Waived info; Irrelevant info.






9. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






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






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






12. 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






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






14. Provides disability income during surgery recovery from life-threatening condition (& sometimes cosmetic surgery).






15. War - 2 types; Suicide (1st 2 yrs.); Aviation (non-commercial); Hazardous hobbies; Criminal acts; Alcohol/Drug influenced.






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






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






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






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






20. 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.






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






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






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






24. Privately-provided or Medicare-provided (if no private carrier) prescription drug plans for qualified individuals but w/ premium - deductible & co-pay.






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






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






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






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






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






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






31. Underwriting - determines insurability; Marketing/Sales - determines products; Actuarial - determines rates; Claims - investigates/pays claims.






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






33. 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.






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






35. Temp. coverage for set duration w/ death benefit ONLY (no cash value) - offers largest $ for lowest premium; renewable; convertible.






36. Provides 24 hr. health coverage both "on" & "off" job - but may cause coverage duplication & coordination challenges.






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






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






39. Allows policy owner to w/draw set % of death benefit upon verification of terminal illness w/ expectancy 12-24 mths.; generally tax-free.






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






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






42. Dependent children are covered until 19 or 23 (full-time student only) or until self-sufficient (if handicapped).






43. Although death benefit is tax-free - it is included in gross estate value so federal &/or state taxes may apply to a portion in excess of fixed federal limit.






44. No deductible coverage for: daily room/board; ancillary costs; surgeon &/or physician expense (for added premium).






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






46. Written policy terms supersede oral statements made prior to policy issue.






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






48. Intentional OR unintentional failure to disclose material underwriting facts that should have been disclosed; grounds for policy rescission.






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






50. Taxable income (unlike individual plans); can be either short-term - 13-52 wks. max. or long-term - longer than 52 wks.







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