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 premium low for set # yrs. - THEN premiums vary (+ or -) based on Insurer's investment returns - w/ Gmax.






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






3. Same as Comprehensive Major Medical but w/ integrated deductible; much more expensive.






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






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






6. To "make whole again" w/out benefit or detriment; neither monetary profit nor loss.






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






8. Basic Medical; Major Medical; Comprehensive Major Medical






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






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






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






12. War/Military; Intentional self-inflicted; Aviation (non-commercial); Foreign country; Loss of professional license; Illegal activity; Mental disorders (after 1-2 yrs.).






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






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






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






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






17. Provides for continued operation of business if partner becomes disabled - by allowing other partner(s) to buy disabled partner's interest in business.






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






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






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






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






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






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






24. Identical to Incontestable Clause in Life policy.






25. 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).






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






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






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






29. Qualified Annuity - Tax-deductible contributions & tax-deferred growth but fully taxable w/drawals.






30. Fixed premium w/ guaranteed min. death benefit that may increase due to higher than expected investment returns.






31. Palliative - treatment to manage pain; Curative - treatment to cure illness/condition.






32. Annuity distributions prior to age 59 1/2 incur a 10% IRS penalty EXCEPT for death - disability - immediate annuity - or rollover.






33. The state in which the contract is accepted or delivered is the state that possesses regulatory jurisdiction over Group plan.






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






35. Representation - oral or written statement made to best of knowledge or belief; Warranty - statement guaranteed/presumed/understood to be true.






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






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






38. 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.






39. 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.






40. Upon notice - Insurer must provide Claim Form (Proof of Loss Form) to Insured w/in 15 days.






41. Employer w/ 25 or less employees must offer all eligible employees @ least 2 medical plan options where pre-existing conditions can't be excluded more than 1 yr.






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






43. IRS allows tax-free transfer of cash values between 2 LIKE policies (i.e. Life to Life - Annuity to Annuity - or Life to Annuity).






44. Facultative - case by case agreements; Automatic/Treaty - automatic acceptance of risk percentage per previous agreement.






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






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






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






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






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






50. Govt. organization providing health care benefits for dependents of military personnel.