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. 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).






2. Representation - oral or written statement made to best of knowledge or belief; Warranty - statement guaranteed/presumed/understood to be true.






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






4. Partially state-funded benefits for low-income people whereby cost of care is shared between state & recipient - based on income.






5. Primary - if 2 or more - equally shared; Contingent (Secondary) - only if primary dead; Tertiary - only if both primary & secondary dead. If none listed - goes to estate.






6. 'The inability to perform ANY gainful occupation'.






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






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






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






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






12. Commercial (private) companies; HMOs; PPOs; Blue Cross/Blue Shield; Employer-sponsored plans; Government.






13. 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.






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






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






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






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






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






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






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






21. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)






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






23. Intentional deception; grounds for rescission.






24. Reappearance of disability w/in 6 mth. period after "recovery" from same disability is considered recurrence - not new disability.






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






26. Domestic - within home state; Foreign - outside home state; Alien - outside home country.






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






28. Intentional OR unintentional failure to disclose material underwriting facts that should have been disclosed; grounds for policy rescission.






29. Agreement - Offer & acceptance; Consideration - application + premium; Legal capacity - licensed &/or competent; Legal purpose - public good.






30. Tendency of poorer risks to seek insurance.






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






32. Generally 10 days after policy delivery to cancel policy w/ full refund - except 30 days for seniors or for replacement policies.






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






34. Taxable income (unlike individual plans); can be either short-term - 13-52 wks. max. or long-term - longer than 52 wks.






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






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






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






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






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






40. Life license + NASD (FINRA) Series 6 or 7.






41. War; elective cosmetic surgery; routine dental; work. comp.-covered claims; self-inflicted (intentional); gov't. facility treatment; LTC; private nursing.






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






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






44. 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.






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






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






47. No deductible coverage for: daily room/board; ancillary costs; surgeon &/or physician expense (for added premium).






48. Mathematical calculation based on overall FICA contributions used to determine retirement/disability/survivorship benefit.






49. 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.






50. Plan A is the CORE benefit & is least expensive; All other plans include Plan A + additional benefits. Plans F & J are high deductible. K & L are both deductible & co-pay plans.