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. Excludes coverage for specific injury/illness either temporarily or permanently in order to eliminate pre-existing condition.






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






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






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






5. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)






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






7. Insurer has right to adjust (+ or -) death benefit if age or sex is misstated but normally doesn't void policy.






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






9. Type of partial disability rider - which pays fluctuating % of lost income w/out time limit.






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. 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.






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






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






14. Temp. coverage for set duration w/ death benefit ONLY (no cash value) - offers largest $ for lowest premium; renewable; convertible.






15. Group plan initially self-funded by employer (like SIR); after which - group plan Insurer covers (up to policy limit); requires TPA.






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






17. 1: Individual; 2: Joint - multiple annuitants paid until 1st dies; 3: Joint & Survivor - multiple annuitants paid until 1st dies THEN survivors paid but @ reduced $.






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






19. Upon notice - Insurer must provide Claim Form (Proof of Loss Form) to Insured w/in 15 days.






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






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






22. 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.






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






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






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






26. 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.






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






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






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






30. Policyholders - Mutual (participating) co. - may pay dividends; Stockholders - Stock (non-participating) co. - no dividends.






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






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






33. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.






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






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






36. Term Life policy w/ decreasing death benefit; usually used to secure credit (loan) w/ lender as beneficiary & borrower as Insured.






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






38. Federal law which allows health coverage portability when changing jobs - so long as previous coverage was in effect 63+ days; allows some tax deductibility for LTC.






39. 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.






40. Application submitted w/out premium; no coverage until submission of full consideration & completed Statement of Continued Good Health.






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






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

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






44. Provides benefit during Social Security "black-out" period - up to 1 yr.






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






46. 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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47. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






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






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






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