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






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






3. 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.






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






5. 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.






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






7. 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.






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






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






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






12. Receipt whereby coverage incepts conditionally upon submission of full consideration and that all underwriting reqs. are met.






13. Allows policy owner to w/draw set % of death benefit upon verification of terminal illness w/ expectancy 12-24 mths.; generally tax-free.






14. Physical - slippery floor; Moral - dishonest acts; Morale - carelessness or recklessness.






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






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






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






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






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






20. Allows for Term policy renewal @ higher premium w/out medical exam; guarantees insurability; based on actual/attained age.






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






22. Conditional - coverage is conditional; Personal - parties are people; Good faith - honesty/integrity; Fiduciary - req's financial trust.






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






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






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






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






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






28. 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.






29. Treating or mitigating loss exposures through 1: avoidance; 2: retention (deductibles); 3: sharing; 4: reduction; or 5: transfer.






30. Premiums determined by target cash values or death benefit; partial cash value w/drawals allowed; transparent policy w/ unbundled premium.






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






32. A lapsed policy may be reinstated if not longer than 3-5 yrs. - & proof of insurability re-established - & back premiums + interest paid.






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






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






35. Part A - Inpatient hospital deductibles vary on # of days; limited reserve days; finite benefit; 1st 3 pints blood; Part B - 20% co-payment.






36. Time period preceding each disability during which benefits are not paid; longer elimination periods = cheaper premium.






37. 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






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






39. Receipt whereby coverage incepts ONLY after underwriting approval.






40. Must be delivered in person or by certified - registered or 1st-class mail w/ signature - unless waived by Insurance Commissioner.






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






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






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






44. Life license + NASD (FINRA) Series 6 or 7.






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






46. Non-qualified Annuity - Non-deductible contributions & tax-deferred growth. At pay-out - tax-free principal but taxable growth.






47. Savings account for medical expenses; Tax-deductible contributions; tax-deferred growth; tax-free for qualified use; taxable for non-qualified use.






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






49. Business continuation funding plan whereby each partner agrees to buy Life policies on each other - but not themselves.






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