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. 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.






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






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






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






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






6. 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






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






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






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






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






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






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






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






14. Policy must be delivered w/ original (or copy of same) application attached.






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






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






17. Same as WL but w/ Decreasing Term rider; upon death - pays monthly income for REMAINING term AFTER which pays full death benefit.






18. Intentional OR unintentional failure to disclose material underwriting facts that should have been disclosed; grounds for policy rescission.






19. Beneficiary has right to leave death benefits / Insurer to protect $ from creditors; interest (taxable) paid on retained funds.






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






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






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






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






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






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






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






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






28. Allows for use of HMO/PPO or other private carrier to provide expanded benefits @ additional premium & if enrolled in BOTH Parts A & B.






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






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






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






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






33. Federal law which prohibits companies w/ 15+ employees from decreasing coverage benefits for women affected by pregnancy or childbirth.






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






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






36. Waives premium upon disability of Insured until return to work; disability must persist for 6 mths. or longer. Cash value & dividends not affected.






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






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






39. Level - fixed death benefit - premium fixed until renewal; Decreasing - death benefit decreases over term - premium fixed until renewal; Increasing - death benefit increases over term - premium fixed until renewal.






40. Federal law which allows health coverage portability when changing jobs - so long as previous coverage was in effect 63+ days; allows some tax deductibility for LTC.






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






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






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






44. 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.






45. Provides 24 hr. health coverage both "on" & "off" job - but may cause coverage duplication & coordination challenges.






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






47. Physical - slippery floor; Moral - dishonest acts; Morale - carelessness or recklessness.






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






49. Treating or mitigating loss exposures through 1: avoidance; 2: retention (deductibles); 3: sharing; 4: reduction; or 5: transfer.






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