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. 'The inability to perform ANY gainful occupation'.






2. 'The inability to perform your OWN normal occupation or daily duties'.






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






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






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






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






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






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






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






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






11. Disability policy rider covering "the inability to perform some - but not all of your duties"; pays max. 50% of disability benefit for up to 6 mths.






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






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






14. 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.






15. Privately-provided or Medicare-provided (if no private carrier) prescription drug plans for qualified individuals but w/ premium - deductible & co-pay.






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






17. Premiums determined by target cash values or death benefit; partial cash value w/drawals allowed; transparent policy w/ unbundled premium.






18. 1: mortality probability charge; 2: Insurer's investment return; 3: expenses (admin costs - commissions). 1 - 2 = net; 1 - 2 + 3 = gross.






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






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






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






22. Monthly; Quarterly; Semi-annually; Annually (cheapest due to less admin cost).






23. Combination of Basic Medical & Major Medical in one policy; Basic pays 1st - then Major Medical w/ corridor deductible.






24. 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.






25. After 2-3 yrs. - Whole Life policy equity builds tax-deferred @ fixed interest rate until it equals death benefit; borrowable but taxable.






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






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






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






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






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






31. Provides medical & personal services for people needing extended assistance w/ Activities of Daily Living (ADL). Other benefits include: assisted living care; respite care; hospice care; adult day care.






32. Funding mechanism whereby employer & employee share cost of premium. Upon death - benefit is shared between employer & beneficiary.






33. Same as WL but premium low for set # yrs. - THEN premiums vary (+ or -) based on Insurer's investment returns - w/ Gmax.






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






35. Treating or mitigating loss exposures through 1: avoidance; 2: retention (deductibles); 3: sharing; 4: reduction; or 5: transfer.






36. To "make whole again" w/out benefit or detriment; neither monetary profit nor loss.






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






38. Provides supplemental coverage for physician/surgeon fees if enrolled (during enrollment period ONLY) & pay monthly premium w/ deductible and co-insurance.






39. A lapsed policy may be reinstated if not longer than 3-5 yrs. - & proof of insurability re-established - & back premiums + interest paid.






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






41. 1: Immediate benefits rec'd w/in 30 days but premium must be paid by lump sum; 2: Deferred - usually until retirement.






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






43. Waives premium upon disability of Insured until return to work; disability must persist for 6 mths. or longer. Cash value & dividends not affected.






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






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






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






47. 1: Fixed - guaranteed fixed monthly income & fixed interest rate; 2: Variable - unguaranteed; monthly income varies based on stocks/bond returns.






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






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






50. The state in which the contract is accepted or delivered is the state that possesses regulatory jurisdiction over Group plan.