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






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






3. Same as WL but w/ adjustable death benefit (& corresponding premium) & over-fund option but w/ annually renewable term (ART).






4. Price of insurance per exposure unit.






5. Same as WL but death benefit increases annually - linked to Consumer Price Index; premium increases annually OR is set high from start.






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






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






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






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






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






11. 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;






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






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






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






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






16. Coverage remains in effect for 31 days past premium due date; benefits paid during grace period would be deducted from sum.






17. Provides accidental death benefit @ full $ of "principal sum". Dismemberment is paid only @ 50% principal sum ("capital sum").






18. 1: Fixed - guaranteed fixed monthly income & fixed interest rate; 2: Variable - unguaranteed; monthly income varies based on stocks/bond returns.






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






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






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






22. Guaranteed min. interest rate on cash value buildup but possible higher rate if short-term investment returns higher than expected.






23. 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






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






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






26. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.






27. Application submitted w/out premium; no coverage until submission of full consideration & completed Statement of Continued Good Health.






28. Intentional deception; grounds for rescission.






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






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






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






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






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






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






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






36. Business continuation funding plan whereby each partner agrees to buy Life policies on each other - but not themselves.






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






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






39. Potential circumstance that could cause a loss; measured in dollars.






40. Accumulation or "pay-in" - contributions & interest earned are tax-deferred; Annuity or "pay-out" - monthly annuity (taxable) paid.






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






42. Written policy terms supersede oral statements made prior to policy issue.






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






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






45. Non-qualified Annuity - Non-deductible contributions & tax-deferred growth. At pay-out - tax-free principal but taxable growth.






46. Provides 24 hr. health coverage both "on" & "off" job - but may cause coverage duplication & coordination challenges.






47. Provides usual & customary business expenses (rent - utilities - salaries - mortgage) if owner becomes disabled; premiums deductible - benefits taxable.






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






49. Same as Universal Life but cash value put in investment vehicles chosen by policy owner (stocks - bonds - munis.); cash value NOT guaranteed.






50. 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.