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






2. Business continuation funding plan whereby each partner agrees to buy Life policies on each other - but not themselves.






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






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






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






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






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






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






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






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






11. No-charge annuity w/drawals allowed up to 10% of total - THEN penalized on sliding scale based on # policy yrs.; conditionally waived.






12. Waives premium on Life policy for minor child until age 21 in event premium payor dies or becomes disabled.


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






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






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






16. No-cost provision that authorizes Insurer to borrow from cash value to pay unpaid premiums after grace period; must ask for @ app. time.






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






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






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






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






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






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






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






24. Price of insurance per exposure unit.






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






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






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






28. Process whereby a reinsurer reinsures w/ another reinsurer.






29. Allows policy owner to w/draw set % of death benefit upon verification of terminal illness w/ expectancy 12-24 mths.; generally tax-free.






30. Premiums determined by target cash values or death benefit; partial cash value w/drawals allowed; transparent policy w/ unbundled premium.






31. 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.






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






33. Written contract that provides INCOME @ high interest rate for fixed period OR for annuitant's lifetime w/ possible death benefit.






34. Receipt whereby coverage incepts immediately upon submission of full consideration - unless declined & premium refunded.






35. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






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






37. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






38. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)






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






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






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






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






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






44. Identical to Incontestable Clause in Life policy.






45. 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






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






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






48. Federally-sponsored health care for individuals 65+ &/or w/ certain disabilities; may run concurrent w/ group plan but group plan would act primary - THEN Medicare.






49. Earned premium is $ paid for coverage to date. Unearned premium is $ paid & returnable due to coverage not provided.






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