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






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






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






4. Prohibited w/ regard to testing for people of same class; test results must remain confidential; coverage may be declined (once discovered).






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






6. 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






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






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






9. Specialized policy covering diagnostic & preventative dental care; often no deductible; co-insurance; expensive; may be included w/ medical plan.






10. Govt. organization providing health care benefits for dependents of military personnel.






11. Period of time following any children's survivor benefit & before benefits are provided to employee's widow/widower.






12. 1: mortality probability charge; 2: Insurer's investment return; 3: expenses (admin costs - commissions). 1 - 2 = net; 1 - 2 + 3 = gross.






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






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






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






16. 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.






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






18. Periodic return of premium to policy owners from Mutual (Par) Companies; not guaranteed & not taxable as income; may be used in 6 ways.






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






20. Fixed premium w/ guaranteed min. death benefit that may increase due to higher than expected investment returns.






21. 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






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






23. Same as WL but premium low for 1st 5 yrs. - THEN has annual premium increases for set # yrs. - THEN level premium.






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






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






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






27. Representation - oral or written statement made to best of knowledge or belief; Warranty - statement guaranteed/presumed/understood to be true.






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






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






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






31. Any person - assoc. - org. - partnership - business trust - LLC - or corp. capable of making an insurance contract.






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






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






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






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






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






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






38. 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;






39. Savings account for medical expenses; Tax-deductible contributions; tax-deferred growth; tax-free for qualified use; taxable for non-qualified use.






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






41. Prevents overinsuring in order to profit from disability by coordinating benefits between Insurers.






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






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






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






46. 1: Individual; 2: Joint - multiple annuitants paid until 1st dies; 3: Joint & Survivor - multiple annuitants paid until 1st dies THEN survivors paid but @ reduced $.






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






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






49. Waives premium upon disability of Insured until return to work; disability must persist for 90 days or longer; 1st 90 day premiums refunded after 90 days.






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