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






2. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.






3. Policyholders - Mutual (participating) co. - may pay dividends; Stockholders - Stock (non-participating) co. - no dividends.






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






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






6. Specialized policy covering diagnostic & preventative dental care; often no deductible; co-insurance; expensive; may be included w/ medical plan.






7. 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.






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






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






10. 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.






11. 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






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






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






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






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






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






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






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






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






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






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






22. Intentional OR unintentional failure to disclose material underwriting facts that should have been disclosed; grounds for policy rescission.






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






24. Prepaid med. benefits for members ONLY w/ approved primary care M.D. (HMO employee); focus on preventative care; low co-pay.






25. 4: Funds retained by Insurer until w/drawn - interest ONLY paid monthly (taxable); 5: Paid-up immediate annuity.






26. Pure risk involves chance of loss ONLY (accident or misfortune). Speculative risk involves chance of loss OR gain (gambling - stock investment).






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






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






29. Receipt whereby coverage incepts ONLY after underwriting approval.






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






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






32. Federal law which allows health coverage portability when changing jobs - so long as previous coverage was in effect 63+ days; allows some tax deductibility for LTC.






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






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






35. Refund of 50-80% of premium (minus claims paid) every 5-10 yrs. OR age 65; expensive!






36. Provides supplemental coverage for physician/surgeon fees if enrolled (during enrollment period ONLY) & pay monthly premium w/ deductible and co-insurance.






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






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






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






40. 1: Individual; 2: Joint - multiple annuitants paid until 1st dies; 3: Joint & Survivor - multiple annuitants paid until 1st dies THEN survivors paid but @ reduced $.






41. 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.






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






43. Basic Medical; Major Medical; Comprehensive Major Medical






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






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






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






47. No-charge annuity w/drawals allowed up to 10% of total - THEN penalized on sliding scale based on # policy yrs.; conditionally waived.






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






49. 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.






50. Allows Term policy conversion to Permanent policy w/out medical exam; must be identical or lower death benefit; based on either attained OR original age.