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. Govt. organization providing health care benefits for dependents of military personnel.






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






3. Price of insurance per exposure unit.






4. 1: Fixed - guaranteed fixed monthly income & fixed interest rate; 2: Variable - unguaranteed; monthly income varies based on stocks/bond returns.






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






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






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






8. Same as WL but w/ Level Term rider; upon death - pays monthly income for FULL term AFTER which pays full death benefit.






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






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






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






12. Authorized (admitted) - can conduct business in state; Unauthorized (non-admitted) - cannot conduct business in state (w/ one exception).






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






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






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






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






17. War; elective cosmetic surgery; routine dental; work. comp.-covered claims; self-inflicted (intentional); gov't. facility treatment; LTC; private nursing.






18. 1: Immediate benefits rec'd w/in 30 days but premium must be paid by lump sum; 2: Deferred - usually until retirement.






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






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






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






22. 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.






23. Intentional deception; grounds for rescission.






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






25. Refund of 50-80% of premium (minus claims paid) every 5-10 yrs. OR age 65; expensive!






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






27. Tendency of poorer risks to seek insurance.






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






29. Covers disabilities occurring both "on" AND "off" job; "on" job benefits paid in addition to work. comp. - if applicable (i.e. individual plan).






30. 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).






31. Term Life policy w/ decreasing death benefit; usually used to secure credit (loan) w/ lender as beneficiary & borrower as Insured.






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






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






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






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






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






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






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






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






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






41. Policy covering minor child; premium fixed but death benefit increases by 5 times @ age 18 or 21.






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






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






44. Policy provisions must conform to state regulations where policy is sold.






45. 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.






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






47. Provides for continued operation of business if partner becomes disabled - by allowing other partner(s) to buy disabled partner's interest in business.






48. Periodic return of premium to policy owners from Mutual (Par) Companies; not guaranteed & not taxable as income; may be used in 6 ways.






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






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