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CA Life Agent Exam

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

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

3. 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

4. Allows Insured to increase benefit w/out medical exam (subject to age max.) w/ additional premium rate determined @ attained age; must prove income increase.

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

6. Provides 24 hr. health coverage both "on" & "off" job - but may cause coverage duplication & coordination challenges.

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

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

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

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

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

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

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

14. Policy provisions must conform to state regulations where policy is sold.

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

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

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

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

19. Receipt whereby coverage incepts conditionally upon submission of full consideration and that all underwriting reqs. are met.

20. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.

21. 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.

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

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

24. 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

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

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

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

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

29. Covers disabilities occurring both "on" AND "off" job; "on" job benefits paid in addition to work. comp. - if applicable (i.e. individual plan).

30. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.

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

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

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

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

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

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

37. Coverage remains in effect for 31 days past premium due date; benefits paid during grace period would be deducted from sum.

38. 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.

39. Physical - slippery floor; Moral - dishonest acts; Morale - carelessness or recklessness.

40. Level - fixed death benefit - premium fixed until renewal; Decreasing - death benefit decreases over term - premium fixed until renewal; Increasing - death benefit increases over term - premium fixed until renewal.

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

42. The state in which the contract is accepted or delivered is the state that possesses regulatory jurisdiction over Group plan.

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

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

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

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

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

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

49. Premiums determined by target cash values or death benefit; partial cash value w/drawals allowed; transparent policy w/ unbundled premium.

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