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. Available for any reason up to full cash value @ fixed (max 8%) OR variable interest rate; loan $ + interest deducted from benefit @ death.






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






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






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






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






6. Potential circumstance that could cause a loss; measured in dollars.






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






8. Provides benefit during Social Security "black-out" period - up to 1 yr.






9. An attempt to contain costs by employing various strategies - including wellness programs - preventative testing - outpatient & alternative procedures.






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






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






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






13. Any person - assoc. - org. - partnership - business trust - LLC - or corp. capable of making an insurance contract.






14. Receipt whereby coverage incepts ONLY after underwriting approval.






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






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






17. Compensates business for loss due to death or disability of key employee; premiums not deductible but benefits tax-free.






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






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






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






21. Same as WL but death benefit decreases each yr. w/ dividends paid annually to offset decrease.






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






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






24. Allows Insured to increase benefit w/out medical exam (subject to age max.) w/ additional premium rate determined @ attained age; must prove income increase.






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






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






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






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






29. 'The inability to perform ANY gainful occupation'.






30. Term Life policy w/ decreasing death benefit; usually used to secure credit (loan) w/ lender as beneficiary & borrower as Insured.






31. Partially state-funded benefits for low-income people whereby cost of care is shared between state & recipient - based on income.






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






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






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






35. Identical to Incontestable Clause in Life policy.






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






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






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






39. Dividends are NOT taxable but interest is. Loan interest is NOT tax-deductible. Interest paid by Insurer on retained funds is taxable.






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






41. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)






42. Underwriting - determines insurability; Marketing/Sales - determines products; Actuarial - determines rates; Claims - investigates/pays claims.






43. Excludes coverage for suicide during 1st 2 yrs. ONLY but - if it does - all premiums must be returned to beneficiary.






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






45. Compensates business for loss due to disability of key employee; premiums not deductible but benefits tax-free.






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






47. Coverage for catastrophic loss w/ high limits - front end deductible; co-insurance (80/20%); blanket coverage; stop loss max.






48. Responsible adult trustee designated to manage death benefits for minor child beneficiary until adulthood.






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






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