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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. Group plan initially self-funded by employer (like SIR); after which - group plan Insurer covers (up to policy limit); requires TPA.






2. Basic Medical; Major Medical; Comprehensive Major Medical






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






4. Funding mechanism whereby employer & employee share cost of premium. Upon death - benefit is shared between employer & beneficiary.






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






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






7. Receipt whereby coverage incepts ONLY after underwriting approval.






8. WL policy covering 2 or more Insureds but payable upon death of FIRST Insured - after which policy ends.






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






10. Same as WL but premium low for 1st 5 yrs. - THEN has annual premium increases for set # yrs. - THEN level premium.






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






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






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






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






15. Grows @ fixed min. interest rate but w/ possible higher rate tied to equity index (i.e S&P Equity Index) appreciation; gains shared w/ Insurer.






16. 1: Fixed - guaranteed fixed monthly income & fixed interest rate; 2: Variable - unguaranteed; monthly income varies based on stocks/bond returns.






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






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






19. Time period preceding each disability during which benefits are not paid; longer elimination periods = cheaper premium.






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






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






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






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






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






25. 4: Funds retained by Insurer until w/drawn - interest ONLY paid monthly (taxable); 5: Paid-up immediate annuity.






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






27. Info already known; Info that should have been known; Waived info; Irrelevant info.






28. Potential circumstance that could cause a loss; measured in dollars.






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






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






31. No coverage for injuries while: 1: @ voluntary social event; 2: self-inflicted (intentional); 3: under alcohol/drug influence; 4: committing criminal act; 5: aggressor in workplace fight; 6: participating in athletic event (non-pro. athletes) 7: par






32. Same as Term Life but provides living benefit (endowment) to policy owner if Insured survives entire term.






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






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






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






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






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






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






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






40. 'The inability to perform your OWN normal occupation or daily duties'.






41. 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.






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






43. Policyholders - Mutual (participating) co. - may pay dividends; Stockholders - Stock (non-participating) co. - no dividends.






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






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






46. Monthly; Quarterly; Semi-annually; Annually (cheapest due to less admin cost).






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






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






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






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







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