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. Allows policy owner to w/draw set % of death benefit upon verification of terminal illness w/ expectancy 12-24 mths.; generally tax-free.






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






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






4. Tendency of poorer risks to seek insurance.






5. Process which prevents claim denial as a result of false statement or promise (made by Insurer) - which was relied upon by Insured.






6. 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.






7. Prohibited w/ regard to testing for people of same class; test results must remain confidential; coverage may be declined (once discovered).






8. Same as WL but death benefit increases annually - linked to Consumer Price Index; premium increases annually OR is set high from start.






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






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






11. Basic Medical; Major Medical; Comprehensive Major Medical






12. Req. by CA statute & may provide workers coverage for action-over claims.






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






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






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






16. Revocable - changeable anytime w/ Change of Beneficiary Form; Irrevocable - not changeable w/out beneficiary permission.






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






18. An attempt to contain costs by employing various strategies - including wellness programs - preventative testing - outpatient & alternative procedures.






19. 4: Funds retained by Insurer until w/drawn - interest ONLY paid monthly (taxable); 5: Paid-up immediate annuity.






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






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






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






23. Allows for Term policy renewal @ higher premium w/out medical exam; guarantees insurability; based on actual/attained age.






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






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






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






27. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






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






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






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






31. 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






32. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






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






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






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






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






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






38. If total premiums paid w/in 1st 7 yrs. exceed net level premium that should have been paid - policy is an MEC.






39. Waives premium on Life policy for minor child until age 21 in event premium payor dies or becomes disabled.


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






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






42. Potential circumstance that could cause a loss; measured in dollars.






43. Intentional deception; grounds for rescission.






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






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






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






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






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






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






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