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






2. Palliative - treatment to manage pain; Curative - treatment to cure illness/condition.






3. Grows @ fixed interest rate for set term but cash value may adjust to prevailing rate (+ or -) if fully surrendered before term ends; % w/drawal ok.






4. Death benefit determined by Insured's projected lost earnings potential.






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






6. 1: Immediate benefits rec'd w/in 30 days but premium must be paid by lump sum; 2: Deferred - usually until retirement.






7. Physical - slippery floor; Moral - dishonest acts; Morale - carelessness or recklessness.






8. 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.






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






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






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






12. Coverage for catastrophic loss w/ high limits - front end deductible; co-insurance (80/20%); blanket coverage; stop loss max.






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






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






15. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






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






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






18. 1: Straight aka Pure Life - lifetime income but no survivorship refund; 2: Life w/ Period Certain - lifetime income w/ death benefit of monthly annuity for remaining predetermined term. 3: Annuity Certain - monthly income paid for predetermined term






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






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






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






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






23. Provides increased death benefit if death occurs w/in 90 days & as result of accident; relatively INexpensive add-on.






24. Both Contributory & Non-contributory Group policies are deductible to employer (not employee) but benefits are taxable. Individual policy premium is NOT deductible but benefit is received tax-free.






25. Privately-sold policies to provide benefits not covered by Medicare; divided into 12 plans listed alphabetically A - L; 30-day free look; guaranteed renewable.






26. Price of insurance per exposure unit.






27. Voiding an insurance contract based on fraud - concealment or material misrepresentation; premiums returned; policy treated as never existing.






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






29. Dependent children are covered until 19 or 23 (full-time student only) or until self-sufficient (if handicapped).






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






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






32. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)






33. WL policy covering 2 or more Insureds but payable upon death of FIRST Insured - after which policy ends.






34. 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.






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






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






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






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






39. Waives premium on Life policy for minor child until age 21 in event premium payor dies or becomes disabled.


40. An irrevocable IRS classification of a policy (determined by the 7 Pay Test) whereby tax advantages are lost for all distributions ONLY.






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






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






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






44. Death benefits & premium automatically increase annually based on inflationary index (i.e. Consumer Price Index).






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






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






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






48. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.






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






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