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






2. Pure risk involves chance of loss ONLY (accident or misfortune). Speculative risk involves chance of loss OR gain (gambling - stock investment).






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






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






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






6. Representation - oral or written statement made to best of knowledge or belief; Warranty - statement guaranteed/presumed/understood to be true.






7. 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.






8. Identical to Incontestable Clause in Life policy.






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






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






11. 1: Immediate benefits rec'd w/in 30 days but premium must be paid by lump sum; 2: Deferred - usually until retirement.






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






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






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






15. 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.






16. Tendency of poorer risks to seek insurance.






17. Covers entire family w/ WL for breadwinner & (convertible) Level Term for spouse & children (until certain age).






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






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






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






21. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






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






23. Intentional deception; grounds for rescission.






24. A company providing lump sum buyout (50-90% of total) of Life policy; becomes owner & beneficiary & assumes premium payments; usually terminally ill viator.






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






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






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






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






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






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






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






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






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






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






35. Actual/Expressed - written powers; Implied - unwritten but customary practices; Apparent - perceived powers.






36. 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.






37. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






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






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






40. 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.






41. Provides benefit during Social Security "black-out" period - up to 1 yr.






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






43. Same as WL but w/ Decreasing Term rider; upon death - pays monthly income for REMAINING term AFTER which pays full death benefit.






44. Federally-sponsored health care for individuals 65+ &/or w/ certain disabilities; may run concurrent w/ group plan but group plan would act primary - THEN Medicare.






45. Group plan initially self-funded by employer (like SIR); after which - group plan Insurer covers (up to policy limit); requires TPA.






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






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






48. Preferred or Preferred Smoker; Standard or Standard Smoker; Substandard; Denied.






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






50. Prepaid med. benefits for "subscribers" @ approved facilities; many non-profit; Blue Cross - Hospital stays; Blue Shield - M.D. costs.