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






2. War - 2 types; Suicide (1st 2 yrs.); Aviation (non-commercial); Hazardous hobbies; Criminal acts; Alcohol/Drug influenced.






3. Req. by CA statute & may provide workers coverage for action-over claims.






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






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






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






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






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






9. 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.






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






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






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






13. 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.






14. 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.






15. Commercial (private) companies; HMOs; PPOs; Blue Cross/Blue Shield; Employer-sponsored plans; Government.






16. Revocable - changeable anytime w/ Change of Beneficiary Form; Irrevocable - not changeable w/out beneficiary permission.






17. Death benefits & premium automatically increase annually based on inflationary index (i.e. Consumer Price Index).






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






19. 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.






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






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






22. Mandatory 100% employer-funded coverage for injuries/illnesses occurring "on" job; full-time employees only; exclusive remedy. Provides: 1: unlimited medical benefit; 2: survivor income replacement & funeral ($5 -000 max.); 3: disability benefit @ 66

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23. Price of insurance per exposure unit.






24. After 2-3 yrs. - Whole Life policy equity builds tax-deferred @ fixed interest rate until it equals death benefit; borrowable but taxable.






25. Fraternal - non-profit - members only; Reciprocal - unincorp'd org. - members insure each other; Lloyd's Assoc. - groups sharing risks; Surplus lines - special market risks.






26. If Insured & primary beneficiary die due to same act (w/in 14 days) - primary assumed 1st to die & contingent beneficiary paid death benefit.






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






28. Receipt whereby coverage incepts ONLY after underwriting approval.






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






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






31. 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.






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






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






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






35. Receipt whereby coverage incepts immediately upon submission of full consideration - unless declined & premium refunded.






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






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






38. Benefits automatically increase annually based on inflationary index (i.e. Consumer Price Index) OR flat rate (5% max.).






39. Same as WL but policy owner can adjust death benefit w/ corresponding premium adjustments; mostly obsolete.






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






41. 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.






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






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






44. 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






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






46. Dependent children are covered until 19 or 23 (full-time student only) or until self-sufficient (if handicapped).






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






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






49. Same as WL but premium low for 1st 5 yrs. - THEN has annual premium increases for set # yrs. - THEN level premium.






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







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