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






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






3. Same as WL but death benefit decreases each yr. w/ dividends paid annually to offset decrease.






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






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






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






7. 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






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






9. Waives premium upon disability of Insured until return to work; disability must persist for 90 days or longer; 1st 90 day premiums refunded after 90 days.






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






11. Financial interest in insured party that must exist @ time of application OR policy issuance. Requires consent (except minors).






12. Mathematical calculation based on overall FICA contributions used to determine retirement/disability/survivorship benefit.






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






14. Insurer has right to rescind policy & return premium if material misrepresentation in application is found w/in 1st 2 yrs.






15. Receipt whereby coverage incepts ONLY after underwriting approval.






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






17. 1: Immediate benefits rec'd w/in 30 days but premium must be paid by lump sum; 2: Deferred - usually until retirement.






18. Pays death benefit until age 100 or death; builds equity (cash value); may be transferred or sold; generally level premium.






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






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






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






22. Partially state-funded benefits for low-income people whereby cost of care is shared between state & recipient - based on income.






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






24. 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






25. 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.






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






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






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






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






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






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






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






33. 1: Cash (tax-free); 2: Apply to future premiums; 3: Retained by Insurer @ interest; 4: Buy Paid-up WL policy add-ons; 5: Pay-up existing policy; 6: Buy 1-yr. Term policy.






34. Same as WL but can be "paid-up" early by paying larger premium for shorter payment period (i.e. 10 Pay Life - 20 Pay Life).






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






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






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






38. Fixed premium w/ guaranteed min. death benefit that may increase due to higher than expected investment returns.






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






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






41. 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.






42. Multiple small employers w/ common affiliation (trade assoc. OR Chamber of Commerce) band together to purchase group plan.






43. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






44. War/Military; Intentional self-inflicted; Aviation (non-commercial); Foreign country; Loss of professional license; Illegal activity; Mental disorders (after 1-2 yrs.).






45. Govt. organization providing health care benefits for dependents of military personnel.






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






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






48. Upon death - death benefit is paid + the aggregate of premiums paid to date; add-on to Term policy ONLY.






49. Available for any reason up to full cash value @ fixed (max 8%) OR variable interest rate; loan $ + interest deducted from benefit @ death.






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