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






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






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






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






5. Process whereby a reinsurer reinsures w/ another reinsurer.






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






7. 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.






8. 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.






9. Hybrid of HMO & PPO w/ greater flexibility on choosing specialists outside network w/ benefits still provided but @ higher co-pay.






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






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






12. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)






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






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






15. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.






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






17. Price of insurance per exposure unit.






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






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






20. Upon notice - Insurer must provide Claim Form (Proof of Loss Form) to Insured w/in 15 days.






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






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






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






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






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






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






27. An irrevocable IRS classification of a policy (determined by the 7 Pay Test) whereby tax advantages are lost for all distributions ONLY.






28. Generally 10 days after policy delivery to cancel policy w/ full refund - except 30 days for seniors or for replacement policies.






29. Revocable - changeable anytime w/ Change of Beneficiary Form; Irrevocable - not changeable w/out beneficiary permission.






30. 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.






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






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






33. 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.






34. Time period preceding each disability during which benefits are not paid; longer elimination periods = cheaper premium.






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






36. Federal law allows employees/their dependents to continue group benefits w/in 60 days after termination (if employer has 20+ employees); Insured pays premium @ 102% of group cost.






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






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






39. Qualified Annuity - Tax-deductible contributions & tax-deferred growth but fully taxable w/drawals.






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






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






42. Same as WL but can be "paid-up" early by paying larger premium for shorter payment period (i.e. 10 Pay Life - 20 Pay Life).






43. Provides coverage for specific disease(s) - such as cancer or leukemia.






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






45. 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.






46. 'The inability to perform ANY gainful occupation'.






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






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






49. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






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