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






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






3. IRS allows tax-free transfer of cash values between 2 LIKE policies (i.e. Life to Life - Annuity to Annuity - or Life to Annuity).






4. Identical to Incontestable Clause in Life policy.






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






6. Both Contributory & Non-contributory Group policies are deductible to employer (not employee) but benefits are taxable. Individual policy premium is NOT deductible but benefit is received tax-free.






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






8. 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.






9. An attempt to contain costs by employing various strategies - including wellness programs - preventative testing - outpatient & alternative procedures.






10. Temp. coverage for set duration w/ death benefit ONLY (no cash value) - offers largest $ for lowest premium; renewable; convertible.






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






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






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






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






15. 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.






16. Benefits NOT taxable; employer-paid premiums deductible to employer; individual plans not deductible unless over 7 1/2% of adjusted gross income - then excess deductible.






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






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






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

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






21. 4: Funds retained by Insurer until w/drawn - interest ONLY paid monthly (taxable); 5: Paid-up immediate annuity.






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






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






24. Basic Medical; Major Medical; Comprehensive Major Medical






25. Federal law to protect Federal employees' (& their beneficiaries') pension - group insurance - & welfare benefits.






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






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






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






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






30. Commercial (private) companies; HMOs; PPOs; Blue Cross/Blue Shield; Employer-sponsored plans; Government.






31. Written contract to transfer risk of premature death from one party to another; pays stated sum upon death; creates instant estate.






32. Any person - assoc. - org. - partnership - business trust - LLC - or corp. capable of making an insurance contract.






33. Provides medical & personal services for people needing extended assistance w/ Activities of Daily Living (ADL). Other benefits include: assisted living care; respite care; hospice care; adult day care.






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






35. Part A - Inpatient hospital deductibles vary on # of days; limited reserve days; finite benefit; 1st 3 pints blood; Part B - 20% co-payment.






36. Responsible adult trustee designated to manage death benefits for minor child beneficiary until adulthood.






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






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






39. Receipt whereby coverage incepts ONLY after underwriting approval.






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






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






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






43. Time extension of benefits based on "qualifying" event. 18 mth. extension if laid off or fired; 36 mth. extension if death - divorce or child leaves home.






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






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






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






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






48. 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






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






50. Same as WL but policy owner can adjust death benefit w/ corresponding premium adjustments; mostly obsolete.