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






2. Provides disability income during surgery recovery from life-threatening condition (& sometimes cosmetic surgery).






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






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






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






6. 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.






7. Part of IRS Section 125 cafeteria plan - which allows pre-tax payroll deductions for qualified medical expenses or child/dependent care.






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






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






10. 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.






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






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






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






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






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






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






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






18. Receipt whereby coverage incepts conditionally upon submission of full consideration and that all underwriting reqs. are met.






19. Upon death - death benefit is paid + the aggregate of premiums paid to date; add-on to Term policy ONLY.






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






21. Fixed premium w/ guaranteed min. death benefit that may increase due to higher than expected investment returns.






22. Mandatory 100% employer-funded coverage for injuries/illnesses occurring "on" job; full-time employees only; exclusive remedy. Provides: 1: unlimited medical benefit; 2: survivor income replacement & funeral ($5 -000 max.); 3: disability benefit @ 66

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23. Peril is the CAUSE of loss. Hazard is a condition that increases LIKELIHOOD of loss.






24. Experience - rates impacted by actual prior claim experience of actual group; Community - identical rates used for entire community - regardless of experience.






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






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






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






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






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






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






31. 'The inability to perform ANY reasonable occupation based on education - training or experience'.






32. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






33. Employer w/ 25 or less employees must offer all eligible employees @ least 2 medical plan options where pre-existing conditions can't be excluded more than 1 yr.






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






35. 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.






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






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






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






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






40. Fraternal - non-profit - members only; Reciprocal - unincorp'd org. - members insure each other; Lloyd's Assoc. - groups sharing risks; Surplus lines - special market risks.






41. Death benefit is NOT taxable. Cash value grows tax-deferred but cost basis (base premium) is not taxable - only interest is.






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






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






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






45. Intentional deception; grounds for rescission.






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






47. WL policy covering 2 or more Insureds but ONLY payable upon death of LAST Insured - generally low premium but high death benefit.






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






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






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