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






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






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






4. Identical to Incontestable Clause in Life policy.






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






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






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






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






9. Pays death benefit until age 100 or death; builds equity (cash value); may be transferred or sold; generally level premium.






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






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






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






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






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






15. 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.






16. Provides hospital insurance automatically @ age 65 (if FICA qualified) @ no fee but may have deductible & co-pay.






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






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






19. Excludes coverage for suicide during 1st 2 yrs. ONLY but - if it does - all premiums must be returned to beneficiary.






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






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






22. Multiple small employers w/ common affiliation (trade assoc. OR Chamber of Commerce) band together to purchase group plan.






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






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






25. Waives premium upon disability of Insured until return to work; disability must persist for 90 days or longer; 1st 90 day premiums refunded after 90 days.






26. 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






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






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






29. If 2 or more family members are injured in the same accident - only payment of a single deductible is required.






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






31. Specialized policy covering diagnostic & preventative dental care; often no deductible; co-insurance; expensive; may be included w/ medical plan.






32. Federally-funded but state-run program for truly indigent individuals & families providing medical care at Federal clinic.






33. Time extension of benefits based on "qualifying" event. 18 mth. extension if laid off or fired; 36 mth. extension if death - divorce or child leaves home.






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






35. Written contract that provides INCOME @ high interest rate for fixed period OR for annuitant's lifetime w/ possible death benefit.






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






37. Basic Medical; Major Medical; Comprehensive Major Medical






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






39. Federal program financed by payroll taxes provided equally by both employer & employee OR entirely by individual (if self-employed). Provides benefits for: Medicare @ age 65+; retirement; $255 lump sum death benefit; (limited) disability; survivors;






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






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






42. Savings account for medical expenses; Tax-deductible contributions; tax-deferred growth; tax-free for qualified use; taxable for non-qualified use.






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






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






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






46. Provides coverage for specific disease(s) - such as cancer or leukemia.






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






48. Must be delivered in person or by certified - registered or 1st-class mail w/ signature - unless waived by Insurance Commissioner.






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






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