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 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.






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






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






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






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






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






7. Mathematical calculation based on overall FICA contributions used to determine retirement/disability/survivorship benefit.






8. Provides hospital insurance automatically @ age 65 (if FICA qualified) @ no fee but may have deductible & co-pay.






9. Part of IRS Section 125 cafeteria plan - which allows pre-tax payroll deductions for qualified medical expenses or child/dependent care.






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






11. 1: Straight aka Pure Life - lifetime income but no survivorship refund; 2: Life w/ Period Certain - lifetime income w/ death benefit of monthly annuity for remaining predetermined term. 3: Annuity Certain - monthly income paid for predetermined term






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






13. Savings account for medical expenses; Tax-deductible contributions; tax-deferred growth; tax-free for qualified use; taxable for non-qualified use.






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






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






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






17. Death benefit determined by Insured's financial goals & needs (minus assets).






18. 1: Individual; 2: Joint - multiple annuitants paid until 1st dies; 3: Joint & Survivor - multiple annuitants paid until 1st dies THEN survivors paid but @ reduced $.






19. 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.






20. Facultative - case by case agreements; Automatic/Treaty - automatic acceptance of risk percentage per previous agreement.






21. A company providing lump sum buyout (50-90% of total) of Life policy; becomes owner & beneficiary & assumes premium payments; usually terminally ill viator.






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






23. 'The inability to perform ANY reasonable occupation based on education - training or experience'.






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






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






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






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






28. Grows @ fixed interest rate for set term but cash value may adjust to prevailing rate (+ or -) if fully surrendered before term ends; % w/drawal ok.






29. Prepaid med. benefits for members ONLY w/ approved primary care M.D. (HMO employee); focus on preventative care; low co-pay.






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






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






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






33. Allows Insured to increase death benefit w/out medical exam (subject to age max.) w/ additional premium rate determined @ attained age.






34. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






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






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






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






38. Generally 10 days after policy delivery to cancel policy w/ full refund - except 30 days for seniors or for replacement policies.






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






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






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






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






43. Provides disability income during surgery recovery from life-threatening condition (& sometimes cosmetic surgery).






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






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






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






47. Refund of 50-80% of premium (minus claims paid) every 5-10 yrs. OR age 65; expensive!






48. WL policy covering 2 or more Insureds but ONLY payable upon death of LAST Insured - generally low premium but high death benefit.






49. 1: Cash (tax-free); 2: Apply to future premiums; 3: Retained by Insurer @ interest; 4: Buy Paid-up WL policy add-ons; 5: Pay-up existing policy; 6: Buy 1-yr. Term policy.






50. Federal law to protect Federal employees' (& their beneficiaries') pension - group insurance - & welfare benefits.