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






2. 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.






3. 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.






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. 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).






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






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






8. No deductible coverage for: daily room/board; ancillary costs; surgeon &/or physician expense (for added premium).






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






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






11. Policy covering minor child; premium fixed but death benefit increases by 5 times @ age 18 or 21.






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






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






14. A company providing lump sum buyout (50-90% of total) of Life policy; becomes owner & beneficiary & assumes premium payments; usually terminally ill viator.






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






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






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






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






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






20. WL policy covering 2 or more Insureds but ONLY payable upon death of LAST Insured - generally low premium but high death benefit.






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






22. Waives premium on Life policy for minor child until age 21 in event premium payor dies or becomes disabled.


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






24. 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.






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






26. 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.






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






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






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






30. Policy provisions must conform to state regulations where policy is sold.






31. Policy must be delivered w/ original (or copy of same) application attached.






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






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






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






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






36. 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.






37. Both Contributory & Non-contributory Group policies are deductible to employer (not employee) but benefits are taxable. Individual policy premium is NOT deductible but benefit is received tax-free.






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






39. Basic Medical; Major Medical; Comprehensive Major Medical






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






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






42. Authorized (admitted) - can conduct business in state; Unauthorized (non-admitted) - cannot conduct business in state (w/ one exception).






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






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






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






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






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






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






50. Provides disability income during surgery recovery from life-threatening condition (& sometimes cosmetic surgery).