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






3. Provides % of monthly income benefit if Insured becomes disabled due to illness or accident.






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






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






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






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






8. Permanent disability due to total loss of sight - hearing - speech or use of 2 + limbs; benefits paid even while continuing to work.






9. Federal law which allows health coverage portability when changing jobs - so long as previous coverage was in effect 63+ days; allows some tax deductibility for LTC.






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






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






12. Same as WL but premium low for 1st 5 yrs. - THEN has annual premium increases for set # yrs. - THEN level premium.






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






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






15. 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.






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






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






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






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






20. Pays death benefit until age 100 or death; builds equity (cash value); may be transferred or sold; generally level premium.






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






22. Excludes coverage for suicide during 1st 2 yrs. ONLY but - if it does - all premiums must be returned to beneficiary.






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






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






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






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






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






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






29. Permanent - not recoverable (spinal cord injury); Temporary - recoverable (temp. illness/injury - broken limb).






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






31. Allows Insured to increase benefit w/out medical exam (subject to age max.) w/ additional premium rate determined @ attained age; must prove income increase.






32. Mortality is the statistical possibility of death @ each age. Morbidity is the statistical possibility & extent of disability @ each age.






33. Domestic - within home state; Foreign - outside home state; Alien - outside home country.






34. Mathematical law stating the larger # of occurrences - the more predictable the losses; used to calculate premiums.






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






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






37. Process which prevents claim denial as a result of false statement or promise (made by Insurer) - which was relied upon by Insured.






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






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






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






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






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






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






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






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






46. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.






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






48. Conditional - coverage is conditional; Personal - parties are people; Good faith - honesty/integrity; Fiduciary - req's financial trust.






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






50. 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.