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. Covers entire family w/ WL for breadwinner & (convertible) Level Term for spouse & children (until certain age).






2. Provides professional services - rehabilitation - training/re-training & related costs to assist Insured in returning to work.






3. 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.






4. Temp. coverage for set duration w/ death benefit ONLY (no cash value) - offers largest $ for lowest premium; renewable; convertible.






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






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






7. Same as Universal Life but cash value put in investment vehicles chosen by policy owner (stocks - bonds - munis.); cash value NOT guaranteed.






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






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






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






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






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






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






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






15. War; elective cosmetic surgery; routine dental; work. comp.-covered claims; self-inflicted (intentional); gov't. facility treatment; LTC; private nursing.






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






17. Intentional deception; grounds for rescission.






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






19. 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.






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






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






22. Prohibited w/ regard to testing for people of same class; test results must remain confidential; coverage may be declined (once discovered).






23. Covers disabilities occurring ONLY "off" job; benefits do not overlap work. comp. (i.e. Group plan).






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






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






26. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.






27. 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.






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






29. Basic Medical; Major Medical; Comprehensive Major Medical






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






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






32. 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.






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






34. Price of insurance per exposure unit.






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






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






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






38. Mathematical law stating the larger # of occurrences - the more predictable the losses; used to calculate premiums.






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






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






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






42. An unintentional mistake committed by an insurance representative; may be covered by E&O insurance.






43. Hybrid of HMO & PPO w/ greater flexibility on choosing specialists outside network w/ benefits still provided but @ higher co-pay.






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






45. 1: mortality probability charge; 2: Insurer's investment return; 3: expenses (admin costs - commissions). 1 - 2 = net; 1 - 2 + 3 = gross.






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






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






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






50. Primary - if 2 or more - equally shared; Contingent (Secondary) - only if primary dead; Tertiary - only if both primary & secondary dead. If none listed - goes to estate.