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. Prepaid med. benefits for members ONLY w/ approved primary care M.D. (HMO employee); focus on preventative care; low co-pay.






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






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






4. Employer w/ 25 or less employees must offer all eligible employees @ least 2 medical plan options where pre-existing conditions can't be excluded more than 1 yr.






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






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






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






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






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






10. Allows for use of HMO/PPO or other private carrier to provide expanded benefits @ additional premium & if enrolled in BOTH Parts A & B.






11. 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.






12. 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.






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






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






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






16. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






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






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






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






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






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






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






23. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






24. Same as WL but policy owner can adjust death benefit w/ corresponding premium adjustments; mostly obsolete.






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






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






27. Receipt whereby coverage incepts ONLY after underwriting approval.






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






29. Allows for Term policy renewal @ higher premium w/out medical exam; guarantees insurability; based on actual/attained age.






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






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






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






33. 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.






34. Provides for continued operation of business if partner becomes disabled - by allowing other partner(s) to buy disabled partner's interest in business.






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






36. Available for any reason up to full cash value @ fixed (max 8%) OR variable interest rate; loan $ + interest deducted from benefit @ death.






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






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






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






40. Tendency of poorer risks to seek insurance.






41. Provides increased death benefit if death occurs w/in 90 days & as result of accident; relatively INexpensive add-on.






42. Death benefit determined by Insured's financial goals & needs (minus assets).






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






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






45. IRS allows tax-free transfer of cash values between 2 LIKE policies (i.e. Life to Life - Annuity to Annuity - or Life to Annuity).






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






47. If Insured changes to: more hazardous job - benefits reduced; less hazardous job - premiums reduce.






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






49. Two death benefit options - Option A: death benefit ONLY; Option B: death benefit + cash value; death benefit NOT guaranteed.






50. Receipt whereby coverage incepts conditionally upon submission of full consideration and that all underwriting reqs. are met.