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






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






3. Guaranteed min. interest rate on cash value buildup but possible higher rate if short-term investment returns higher than expected.






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






5. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






6. A lapsed policy may be reinstated if not longer than 3-5 yrs. - & proof of insurability re-established - & back premiums + interest paid.






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






8. If total premiums paid w/in 1st 7 yrs. exceed net level premium that should have been paid - policy is an MEC.






9. Mortality is the statistical possibility of death @ each age. Morbidity is the statistical possibility & extent of disability @ each age.






10. Upon death - death benefit is paid + the aggregate of premiums paid to date; add-on to Term policy ONLY.






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






12. Tendency of poorer risks to seek insurance.






13. Policy provisions must conform to state regulations where policy is sold.






14. Federal program financed by payroll taxes provided equally by both employer & employee OR entirely by individual (if self-employed). Provides benefits for: Medicare @ age 65+; retirement; $255 lump sum death benefit; (limited) disability; survivors;






15. 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.






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






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






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






19. 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.






20. Price of insurance per exposure unit.






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






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






23. 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.






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






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






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






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






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






29. 1: Immediate benefits rec'd w/in 30 days but premium must be paid by lump sum; 2: Deferred - usually until retirement.






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






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






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






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






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






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






36. Agents - represent Insurer; Brokers - represent themselves & Insured; Solicitors - represent one agent to solicit leads.






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






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






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






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






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






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






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






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






45. Basic Medical; Major Medical; Comprehensive Major Medical






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






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






48. Disability policy rider covering "the inability to perform some - but not all of your duties"; pays max. 50% of disability benefit for up to 6 mths.






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






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