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. 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.






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






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






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






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






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






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






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






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






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






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






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






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






14. 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.






15. Upon death - death benefit is paid + the aggregate of cash value accumulated to date; add-on to WL policy ONLY.






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






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






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






19. PURELY employer-funded account to reimburse employees for qualified medical expenses not covered by group health plan.






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






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






22. Provides accidental death benefit @ full $ of "principal sum". Dismemberment is paid only @ 50% principal sum ("capital sum").






23. Provides for continued operation of business if partner becomes disabled - by allowing other partner(s) to buy disabled partner's interest in business.






24. Allows Insured to increase benefit w/out medical exam (subject to age max.) w/ additional premium rate determined @ attained age; must prove income increase.






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






26. Type of partial disability rider - which pays fluctuating % of lost income w/out time limit.






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






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






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






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






31. Agents - represent Insurer; Brokers - represent themselves & Insured; Solicitors - represent one agent to solicit leads.






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






33. War/Military; Intentional self-inflicted; Aviation (non-commercial); Foreign country; Loss of professional license; Illegal activity; Mental disorders (after 1-2 yrs.).






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






35. Pure risk involves chance of loss ONLY (accident or misfortune). Speculative risk involves chance of loss OR gain (gambling - stock investment).






36. Basic Medical; Major Medical; Comprehensive Major Medical






37. Federally-funded but state-run program for truly indigent individuals & families providing medical care at Federal clinic.






38. The state in which the contract is accepted or delivered is the state that possesses regulatory jurisdiction over Group plan.






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






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






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






42. Price of insurance per exposure unit.






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






44. If total premiums paid w/in 1st 7 yrs. exceed net level premium that should have been paid - policy is an MEC.






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






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






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

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






49. Employer w/ 25 or less employees must offer all eligible employees @ least 2 medical plan options where pre-existing conditions can't be excluded more than 1 yr.






50. 1: Req. - unless self-employed; 2: 7-day wait for disability benefits; 3: Premium based on ex-mod; 4: Rates approved by CDI; 5: to sell - must satisfy education reqs.