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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. Accumulation or "pay-in" - contributions & interest earned are tax-deferred; Annuity or "pay-out" - monthly annuity (taxable) paid.






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






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






4. 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;






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






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






7. Intentional deception; grounds for rescission.






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






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






10. 1: parties to contract; 2: insured party or life; 3: insurable interest - if 3rd party; 4: risks insured against; 5: policy period (term); 6: premium & mode.






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






12. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)






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






14. Same as WL but death benefit increases annually - linked to Consumer Price Index; premium increases annually OR is set high from start.






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






16. Coverage for catastrophic loss w/ high limits - front end deductible; co-insurance (80/20%); blanket coverage; stop loss max.






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






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






19. Combination of Basic Medical & Major Medical in one policy; Basic pays 1st - then Major Medical w/ corridor deductible.






20. 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.






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






22. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






23. Policy owner has right to determine mode of premium payment but Insurer can charge admin. fee if not annual.






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






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






26. Benefits NOT taxable; employer-paid premiums deductible to employer; individual plans not deductible unless over 7 1/2% of adjusted gross income - then excess deductible.






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






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






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






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






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






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






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






34. Experience - rates impacted by actual prior claim experience of actual group; Community - identical rates used for entire community - regardless of experience.






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






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






37. Basic Medical; Major Medical; Comprehensive Major Medical






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






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






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






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






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






43. Prevents overinsuring in order to profit from disability by coordinating benefits between Insurers.






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






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






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






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






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






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






50. Period of time following any children's survivor benefit & before benefits are provided to employee's widow/widower.







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