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






2. Policy covering minor child; premium fixed but death benefit increases by 5 times @ age 18 or 21.






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






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






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






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






7. Provides medical & personal services for people needing extended assistance w/ Activities of Daily Living (ADL). Other benefits include: assisted living care; respite care; hospice care; adult day care.






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






9. Peril is the CAUSE of loss. Hazard is a condition that increases LIKELIHOOD of loss.






10. 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.






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






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






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






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






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






16. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)






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






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






19. Same as WL but death benefit decreases each yr. w/ dividends paid annually to offset decrease.






20. Annuity distributions prior to age 59 1/2 incur a 10% IRS penalty EXCEPT for death - disability - immediate annuity - or rollover.






21. 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.






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






23. Policy owner must notify Insurer of loss either in writing - in person or by phone w/in 20 days.






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






25. Federally-sponsored health care for individuals 65+ &/or w/ certain disabilities; may run concurrent w/ group plan but group plan would act primary - THEN Medicare.






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






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






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






29. 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.






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






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






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






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






34. Federal law which prohibits companies w/ 20+ employees from denying work & medical benefits to employees due to age.






35. Pure risk involves chance of loss ONLY (accident or misfortune). Speculative risk involves chance of loss OR gain (gambling - stock investment).






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






37. Summary of coverage including premium & mode of payment - death benefit - beneficiary(ies) - exclusions - & promise to pay.






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






39. Extreme form of Limited Pay Whole Life whereby entire premium is paid in a single payment.






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






41. Insured can seek legal action against Insurer for denial of claim only after 60 days and up to 3 yrs. after providing proof of loss.






42. A lapsed policy may be reinstated if not longer than 3-5 yrs. - & proof of insurability re-established - & back premiums + interest paid.






43. Federal law which prohibits companies w/ 15+ employees from decreasing coverage benefits for women affected by pregnancy or childbirth.






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






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






46. WL policy covering 2 or more Insureds but ONLY payable upon death of LAST Insured - generally low premium but high death benefit.






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






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






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






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