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






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






3. 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






4. Provides coverage for specific disease(s) - such as cancer or leukemia.






5. Intentional OR unintentional failure to disclose material underwriting facts that should have been disclosed; grounds for policy rescission.






6. 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.






7. 1: Individual; 2: Joint - multiple annuitants paid until 1st dies; 3: Joint & Survivor - multiple annuitants paid until 1st dies THEN survivors paid but @ reduced $.






8. Same as Comprehensive Major Medical but w/ integrated deductible; much more expensive.






9. Same as WL but cash value increases @ current interest rates (not set); premium can start low or high & may change.






10. Privately-sold policies to provide benefits not covered by Medicare; divided into 12 plans listed alphabetically A - L; 30-day free look; guaranteed renewable.






11. Two death benefit options - Option A: death benefit ONLY; Option B: death benefit + cash value; death benefit NOT guaranteed.






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






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






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






15. 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.






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






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






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






19. Pre-existing illness/injury; Waiting period; Elimination period; Probationary period; Benefits - Exclusions - Limitations; Underwriting reqs.






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






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






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






23. Beneficiary has right to leave death benefits / Insurer to protect $ from creditors; interest (taxable) paid on retained funds.






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






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






26. No-charge annuity w/drawals allowed up to 10% of total - THEN penalized on sliding scale based on # policy yrs.; conditionally waived.






27. 1: mortality probability charge; 2: Insurer's investment return; 3: expenses (admin costs - commissions). 1 - 2 = net; 1 - 2 + 3 = gross.






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






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






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






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






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






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






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






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






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






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






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






39. 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.






40. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






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






42. Info already known; Info that should have been known; Waived info; Irrelevant info.






43. Plan A is the CORE benefit & is least expensive; All other plans include Plan A + additional benefits. Plans F & J are high deductible. K & L are both deductible & co-pay plans.






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






45. 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.






46. Provides increased death benefit if death occurs w/in 90 days & as result of accident; relatively INexpensive add-on.






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






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






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






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