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






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






3. Non-qualified Annuity - Non-deductible contributions & tax-deferred growth. At pay-out - tax-free principal but taxable growth.






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






5. 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.






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






7. No coverage for injuries while: 1: @ voluntary social event; 2: self-inflicted (intentional); 3: under alcohol/drug influence; 4: committing criminal act; 5: aggressor in workplace fight; 6: participating in athletic event (non-pro. athletes) 7: par






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






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






10. 1: Individual; 2: Joint - multiple annuitants paid until 1st dies; 3: Joint & Survivor - multiple annuitants paid until 1st dies THEN survivors paid but @ reduced $.






11. 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.






12. 'The inability to perform your OWN normal occupation or daily duties'.






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






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






15. Part A - Inpatient hospital deductibles vary on # of days; limited reserve days; finite benefit; 1st 3 pints blood; Part B - 20% co-payment.






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






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






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






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






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






21. 'The inability to perform ANY reasonable occupation based on education - training or experience'.






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






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






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






25. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






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






27. If Insured & primary beneficiary die due to same act (w/in 14 days) - primary assumed 1st to die & contingent beneficiary paid death benefit.






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






29. 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.






30. Process whereby a reinsurer reinsures w/ another reinsurer.






31. Prepaid med. benefits for "subscribers" @ approved facilities; many non-profit; Blue Cross - Hospital stays; Blue Shield - M.D. costs.






32. Although death benefit is tax-free - it is included in gross estate value so federal &/or state taxes may apply to a portion in excess of fixed federal limit.






33. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






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






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






36. Provides supplemental coverage for physician/surgeon fees if enrolled (during enrollment period ONLY) & pay monthly premium w/ deductible and co-insurance.






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






38. 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.






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






40. Tendency of poorer risks to seek insurance.






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






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






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






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






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






46. Guaranteed min. interest rate on cash value buildup but possible higher rate if short-term investment returns higher than expected.






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






48. Identical to Incontestable Clause in Life policy.






49. 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.






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