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






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






3. Insurer has right to adjust (+ or -) death benefit if age or sex is misstated but normally doesn't void policy.






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






5. Privately-provided or Medicare-provided (if no private carrier) prescription drug plans for qualified individuals but w/ premium - deductible & co-pay.






6. 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.






7. Domestic - within home state; Foreign - outside home state; Alien - outside home country.






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






9. Basic Medical; Major Medical; Comprehensive Major Medical






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






11. Permanent - not recoverable (spinal cord injury); Temporary - recoverable (temp. illness/injury - broken limb).






12. 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.






13. Insured can seek legal action against Insurer for denial of claim only after 60 days and up to 3 yrs. after providing proof of loss.






14. 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.






15. If Insured changes to: more hazardous job - benefits reduced; less hazardous job - premiums reduce.






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






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






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






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






20. Monthly; Quarterly; Semi-annually; Annually (cheapest due to less admin cost).






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






22. Same as WL but w/ adjustable death benefit (& corresponding premium) & over-fund option but w/ annually renewable term (ART).






23. Grows @ fixed min. interest rate but w/ possible higher rate tied to equity index (i.e S&P Equity Index) appreciation; gains shared w/ Insurer.






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






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






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






27. Insurance purchased by other Insurer(s) to spread or diversify risk; promotes industry stability.






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






29. 1: Individual; 2: Joint - multiple annuitants paid until 1st dies; 3: Joint & Survivor - multiple annuitants paid until 1st dies THEN survivors paid but @ reduced $.






30. Death benefit determined by Insured's projected lost earnings potential.






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






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






33. WL policy covering 2 or more Insureds but payable upon death of FIRST Insured - after which policy ends.






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






35. An irrevocable IRS classification of a policy (determined by the 7 Pay Test) whereby tax advantages are lost for all distributions ONLY.






36. 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.






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






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






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






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






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






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






43. Reappearance of disability w/in 6 mth. period after "recovery" from same disability is considered recurrence - not new disability.






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






45. Policy owner has 90 days from date of loss to submit proof of loss to Insurer; valid claim must be paid immediately upon receipt.






46. 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






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






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






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






50. 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.