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






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






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






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






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






6. 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.






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






8. Basic Medical; Major Medical; Comprehensive Major Medical






9. 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.






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






11. If Insured changes to: more hazardous job - benefits reduced; less hazardous job - premiums reduce.






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






13. Same as Term Life but provides living benefit (endowment) to policy owner if Insured survives entire term.






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






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






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






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






18. 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.






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






20. Hybrid of HMO & PPO w/ greater flexibility on choosing specialists outside network w/ benefits still provided but @ higher co-pay.






21. Policy must be delivered w/ original (or copy of same) application attached.






22. Facultative - case by case agreements; Automatic/Treaty - automatic acceptance of risk percentage per previous agreement.






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






24. 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






25. Allows for use of HMO/PPO or other private carrier to provide expanded benefits @ additional premium & if enrolled in BOTH Parts A & B.






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






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






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






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






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






31. Provides for continued operation of business if partner dies - by allowing surviving partner(s) to buy deceased partner's interest in business.






32. Qualified Annuity - Tax-deductible contributions & tax-deferred growth but fully taxable w/drawals.






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






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






35. PURELY employer-funded account to reimburse employees for qualified medical expenses not covered by group health plan.






36. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)






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






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






39. 1: Fixed - guaranteed fixed monthly income & fixed interest rate; 2: Variable - unguaranteed; monthly income varies based on stocks/bond returns.






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






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






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






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






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






45. 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).






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






47. Same as WL but premium low for set # yrs. - THEN premiums vary (+ or -) based on Insurer's investment returns - w/ Gmax.






48. 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.






49. Same as Comprehensive Major Medical but w/ integrated deductible; much more expensive.






50. Insurance purchased by other Insurer(s) to spread or diversify risk; promotes industry stability.