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






2. Refund of 50-80% of premium (minus claims paid) every 5-10 yrs. OR age 65; expensive!






3. 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.






4. PURELY employer-funded account to reimburse employees for qualified medical expenses not covered by group health plan.






5. Unintentional - up to $1 -000 + legal $; Intentional - $1 -000-5 -000 + legal $; If harmful - misdemeanor + up to 1 yr. prison + up to $10 -000.






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






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






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






9. Same as Term Life but provides living benefit (endowment) to policy owner if Insured survives entire term.






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






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






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






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






14. Voiding an insurance contract based on fraud - concealment or material misrepresentation; premiums returned; policy treated as never existing.






15. Allows Insured to increase death benefit w/out medical exam (subject to age max.) w/ additional premium rate determined @ attained age.






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






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






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






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






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






21. 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.






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






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






24. Guaranteed min. interest rate on cash value buildup but possible higher rate if short-term investment returns higher than expected.






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






26. Federal law allows employees/their dependents to continue group benefits w/in 60 days after termination (if employer has 20+ employees); Insured pays premium @ 102% of group cost.






27. 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.






28. An irrevocable IRS classification of a policy (determined by the 7 Pay Test) whereby tax advantages are lost for all distributions ONLY.






29. Policy owner must notify Insurer of loss either in writing - in person or by phone w/in 20 days.






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






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






32. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






33. 1: Fixed - guaranteed fixed monthly income & fixed interest rate; 2: Variable - unguaranteed; monthly income varies based on stocks/bond returns.






34. Federally-funded but state-run program for truly indigent individuals & families providing medical care at Federal clinic.






35. Same as WL but premium low for 1st 3-5 yrs. - THEN has one-time premium increase.






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






37. 4: Funds retained by Insurer until w/drawn - interest ONLY paid monthly (taxable); 5: Paid-up immediate annuity.






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






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






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






41. 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.






42. Provides professional services - rehabilitation - training/re-training & related costs to assist Insured in returning to work.






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






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






45. Basic Medical; Major Medical; Comprehensive Major Medical






46. Allows for use of HMO/PPO or other private carrier to provide expanded benefits @ additional premium & if enrolled in BOTH Parts A & B.






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






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






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






50. Insurance purchased by other Insurer(s) to spread or diversify risk; promotes industry stability.