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






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






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






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






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






6. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






7. Disability income is based on "earned income" (salary - bonus - commission) - not unearned income (interest - investment - rents).






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






9. 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.






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






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






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






13. 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.






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






15. Price of insurance per exposure unit.






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






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






18. 4: Funds retained by Insurer until w/drawn - interest ONLY paid monthly (taxable); 5: Paid-up immediate annuity.






19. 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






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






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






22. Same as Comprehensive Major Medical but w/ integrated deductible; much more expensive.






23. An attempt to contain costs by employing various strategies - including wellness programs - preventative testing - outpatient & alternative procedures.






24. Level - fixed death benefit - premium fixed until renewal; Decreasing - death benefit decreases over term - premium fixed until renewal; Increasing - death benefit increases over term - premium fixed until renewal.






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






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






27. Physical - slippery floor; Moral - dishonest acts; Morale - carelessness or recklessness.






28. Policyholders - Mutual (participating) co. - may pay dividends; Stockholders - Stock (non-participating) co. - no dividends.






29. Intentional deception; grounds for rescission.






30. Covers disabilities occurring ONLY "off" job; benefits do not overlap work. comp. (i.e. Group plan).






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






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






33. 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.






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






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






36. 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).






37. Federal law which prohibits companies w/ 15+ employees from decreasing coverage benefits for women affected by pregnancy or childbirth.






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






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






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. 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.






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






43. Policy owner has right to determine mode of premium payment but Insurer can charge admin. fee if not annual.






44. Info already known; Info that should have been known; Waived info; Irrelevant info.






45. Same as Term Life but provides living benefit (endowment) to policy owner if Insured survives entire term.






46. Tendency of poorer risks to seek insurance.






47. Plan A is the CORE benefit & is least expensive; All other plans include Plan A + additional benefits. Plans F & J are high deductible. K & L are both deductible & co-pay plans.






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






49. 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






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