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. Provides professional services - rehabilitation - training/re-training & related costs to assist Insured in returning to work.






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






3. 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.






4. Tendency of poorer risks to seek insurance.






5. Grows @ fixed min. interest rate but w/ possible higher rate tied to equity index (i.e S&P Equity Index) appreciation; gains shared w/ Insurer.






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






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






8. Mathematical law stating the larger # of occurrences - the more predictable the losses; used to calculate premiums.






9. Prevents overinsuring in order to profit from disability by coordinating benefits between Insurers.






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






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






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






13. No-cost provision that authorizes Insurer to borrow from cash value to pay unpaid premiums after grace period; must ask for @ app. time.






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






15. Prepaid med. benefits for members w/ approved primary care M.D. (independent); low co-pay; non-PPO M.D. can be used at higher cost.






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






17. Basic Medical; Major Medical; Comprehensive Major Medical






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






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






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






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






22. 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.






23. 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.






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






25. Mortality is the statistical possibility of death @ each age. Morbidity is the statistical possibility & extent of disability @ each age.






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






27. Same as WL but death benefit increases annually - linked to Consumer Price Index; premium increases annually OR is set high from start.






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






29. Benefits NOT taxable; employer-paid premiums deductible to employer; individual plans not deductible unless over 7 1/2% of adjusted gross income - then excess deductible.






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






31. Same as WL but premium low for 1st 3-5 yrs. - THEN has one-time premium increase.






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






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






34. Federal law which allows health coverage portability when changing jobs - so long as previous coverage was in effect 63+ days; allows some tax deductibility for LTC.






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






36. Allows Insured to increase benefit w/out medical exam (subject to age max.) w/ additional premium rate determined @ attained age; must prove income increase.






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






38. Underwriting - determines insurability; Marketing/Sales - determines products; Actuarial - determines rates; Claims - investigates/pays claims.






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






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






41. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)






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






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

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


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






45. Coverage remains in effect for 31 days past premium due date; benefits paid during grace period would be deducted from sum.






46. Earned premium is $ paid for coverage to date. Unearned premium is $ paid & returnable due to coverage not provided.






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






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






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






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