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






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






3. 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.






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






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






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






7. Financial interest in insured party that must exist @ time of application OR policy issuance. Requires consent (except minors).






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






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






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






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






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






13. Same as WL but w/ Decreasing Term rider; upon death - pays monthly income for REMAINING term AFTER which pays full death benefit.






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






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






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






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






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






20. Price of insurance per exposure unit.






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






22. Upon death - death benefit is paid + the aggregate of cash value accumulated to date; add-on to WL policy ONLY.






23. Covers disabilities occurring both "on" AND "off" job; "on" job benefits paid in addition to work. comp. - if applicable (i.e. individual plan).






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






25. Allows for use of HMO/PPO or other private carrier to provide expanded benefits @ additional premium & if enrolled in BOTH Parts A & B.






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






27. Basic Medical; Major Medical; Comprehensive Major Medical






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






29. Intentional deception; grounds for rescission.






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






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






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






33. Federally-funded but state-run program for truly indigent individuals & families providing medical care at Federal clinic.






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






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






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






37. Unintentional - up to $1 -000 + legal $; Intentional - $1 -000-5 -000 + legal $; If harmful - misdemeanor + up to 1 yr. prison + up to $10 -000.






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






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






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






41. Multiple small employers w/ common affiliation (trade assoc. OR Chamber of Commerce) band together to purchase group plan.






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






43. Provides medical & personal services for people needing extended assistance w/ Activities of Daily Living (ADL). Other benefits include: assisted living care; respite care; hospice care; adult day care.






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






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






46. Tendency of poorer risks to seek insurance.






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






48. 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.






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






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