Test your basic knowledge |

CA Life Agent Exam

Subject : certifications
  • 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. A&H - A&S - Sickness only; Medical; Disability; Accident only; Travel accident; LTC; Medicare supplement; AD&D; Dental/Vision/Prescription; Limited.

2. 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.

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

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

5. Insurer has right to rescind policy & return premium if material misrepresentation in application is found w/in 1st 2 yrs.

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

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

8. 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

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

10. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.

11. Group plan initially self-funded by employer (like SIR); after which - group plan Insurer covers (up to policy limit); requires TPA.

12. 1: Straight aka Pure Life - lifetime income but no survivorship refund; 2: Life w/ Period Certain - lifetime income w/ death benefit of monthly annuity for remaining predetermined term. 3: Annuity Certain - monthly income paid for predetermined term

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

14. Receipt whereby coverage incepts ONLY after underwriting approval.

15. Federally-funded but state-run program for truly indigent individuals & families providing medical care at Federal clinic.

16. 1: mortality probability charge; 2: Insurer's investment return; 3: expenses (admin costs - commissions). 1 - 2 = net; 1 - 2 + 3 = gross.

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

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

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

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

21. 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.

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

23. 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.

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

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

26. If 2 or more family members are injured in the same accident - only payment of a single deductible is required.

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

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

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

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

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

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

33. 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.

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

35. 1: Cash (tax-free); 2: Apply to future premiums; 3: Retained by Insurer @ interest; 4: Buy Paid-up WL policy add-ons; 5: Pay-up existing policy; 6: Buy 1-yr. Term policy.

36. Unintentional - up to $1 -000 + legal $; Intentional - $1 -000-5 -000 + legal $; If harmful - misdemeanor + up to 1 yr. prison + up to $10 -000.

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

38. Intentional deception; grounds for rescission.

39. 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.

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

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

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

43. 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.

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

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

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

47. Domestic - within home state; Foreign - outside home state; Alien - outside home country.

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

49. Palliative - treatment to manage pain; Curative - treatment to cure illness/condition.

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