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






2. Plan A is the CORE benefit & is least expensive; All other plans include Plan A + additional benefits. Plans F & J are high deductible. K & L are both deductible & co-pay plans.






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






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






5. Allows for Term policy renewal @ higher premium w/out medical exam; guarantees insurability; based on actual/attained age.






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






7. 1: parties to contract; 2: insured party or life; 3: insurable interest - if 3rd party; 4: risks insured against; 5: policy period (term); 6: premium & mode.






8. Expands individual WL policy to include Term Life for dependents (spouse - children - etc.).






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






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






11. 4: Funds retained by Insurer until w/drawn - interest ONLY paid monthly (taxable); 5: Paid-up immediate annuity.






12. Tendency of poorer risks to seek insurance.






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






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






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






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






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






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






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






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






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






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






23. Provides % of monthly income benefit if Insured becomes disabled due to illness or accident.






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






25. 1: mortality probability charge; 2: Insurer's investment return; 3: expenses (admin costs - commissions). 1 - 2 = net; 1 - 2 + 3 = gross.






26. After 2-3 yrs. - Whole Life policy equity builds tax-deferred @ fixed interest rate until it equals death benefit; borrowable but taxable.






27. To "make whole again" w/out benefit or detriment; neither monetary profit nor loss.






28. Private sector (Commercial) - provides LA&H - P&C - & LTC; Public sector (Gov't) - provides flood - work. comp. - Medicare/Medicaid - Group Life (SGLI/FEGLI).






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






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






31. Basic Medical; Major Medical; Comprehensive Major Medical






32. Although death benefit is tax-free - it is included in gross estate value so federal &/or state taxes may apply to a portion in excess of fixed federal limit.






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






34. Permanent disability due to total loss of sight - hearing - speech or use of 2 + limbs; benefits paid even while continuing to work.






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






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






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






38. Req. by CA statute & may provide workers coverage for action-over claims.






39. Allows Term policy conversion to Permanent policy w/out medical exam; must be identical or lower death benefit; based on either attained OR original age.






40. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






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






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






43. Provides increased death benefit if death occurs w/in 90 days & as result of accident; relatively INexpensive add-on.






44. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.






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






46. Federal law allows employees/their dependents to continue group benefits w/in 60 days after termination (if employer has 20+ employees); Insured pays premium @ 102% of group cost.






47. 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.






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






49. Excludes coverage for suicide during 1st 2 yrs. ONLY but - if it does - all premiums must be returned to beneficiary.






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