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






2. 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.






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






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






5. Primary - if 2 or more - equally shared; Contingent (Secondary) - only if primary dead; Tertiary - only if both primary & secondary dead. If none listed - goes to estate.






6. Commercial (private) companies; HMOs; PPOs; Blue Cross/Blue Shield; Employer-sponsored plans; Government.






7. 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.






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






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






10. 1: Req. - unless self-employed; 2: 7-day wait for disability benefits; 3: Premium based on ex-mod; 4: Rates approved by CDI; 5: to sell - must satisfy education reqs.






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






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






13. Identical to Incontestable Clause in Life policy.






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






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






16. Part of IRS Section 125 cafeteria plan - which allows pre-tax payroll deductions for qualified medical expenses or child/dependent care.






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






18. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)






19. 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.






20. Benefits automatically increase annually based on inflationary index (i.e. Consumer Price Index) OR flat rate (5% max.).






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






22. Tendency of poorer risks to seek insurance.






23. 1: Fixed - guaranteed fixed monthly income & fixed interest rate; 2: Variable - unguaranteed; monthly income varies based on stocks/bond returns.






24. 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.






25. Policy owner must notify Insurer of loss either in writing - in person or by phone w/in 20 days.






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






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






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






29. Reappearance of disability w/in 6 mth. period after "recovery" from same disability is considered recurrence - not new disability.






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






31. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.






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






33. If total premiums paid w/in 1st 7 yrs. exceed net level premium that should have been paid - policy is an MEC.






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






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






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






37. PURELY employer-funded account to reimburse employees for qualified medical expenses not covered by group health plan.






38. Type of partial disability rider - which pays fluctuating % of lost income w/out time limit.






39. 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






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






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






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






43. Insurance purchased by other Insurer(s) to spread or diversify risk; promotes industry stability.






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






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






46. Same as WL but death benefit decreases each yr. w/ dividends paid annually to offset decrease.






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






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






49. 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.






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