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






2. Taxable income (unlike individual plans); can be either short-term - 13-52 wks. max. or long-term - longer than 52 wks.






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






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






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






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






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






8. 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.






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






10. Federal program financed by payroll taxes provided equally by both employer & employee OR entirely by individual (if self-employed). Provides benefits for: Medicare @ age 65+; retirement; $255 lump sum death benefit; (limited) disability; survivors;






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






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






13. 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.






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






15. Basic Medical; Major Medical; Comprehensive Major Medical






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






17. Must be delivered in person or by certified - registered or 1st-class mail w/ signature - unless waived by Insurance Commissioner.






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






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






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






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






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






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






24. Unilateral - Insurer provides contract; Adhesion - parties must adhere to terms; Aleatory - benefits may not inure equally.






25. Provides hospital insurance automatically @ age 65 (if FICA qualified) @ no fee but may have deductible & co-pay.






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






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






28. Same as WL but w/ Decreasing Term rider; upon death - pays monthly income for REMAINING term AFTER which pays full death benefit.






29. Death benefit determined by Insured's financial goals & needs (minus assets).






30. 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.






31. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






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






33. 1: Immediate benefits rec'd w/in 30 days but premium must be paid by lump sum; 2: Deferred - usually until retirement.






34. Allows Term policy conversion to Permanent policy w/out medical exam; must be identical or lower death benefit; based on either attained OR original age.






35. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.






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






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






38. If Insured changes to: more hazardous job - benefits reduced; less hazardous job - premiums reduce.






39. Death benefit is NOT taxable. Cash value grows tax-deferred but cost basis (base premium) is not taxable - only interest is.






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






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






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






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






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






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






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






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






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






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






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







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