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






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






3. 'The inability to perform ANY gainful occupation'.






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






5. No deductible coverage for: daily room/board; ancillary costs; surgeon &/or physician expense (for added premium).






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






7. Death benefit determined by Insured's projected lost earnings potential.






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






9. 1: Cash (tax-free); 2: Apply to future premiums; 3: Retained by Insurer @ interest; 4: Buy Paid-up WL policy add-ons; 5: Pay-up existing policy; 6: Buy 1-yr. Term policy.






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






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






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






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






14. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






15. Upon notice - Insurer must provide Claim Form (Proof of Loss Form) to Insured w/in 15 days.






16. Provides hospital insurance automatically @ age 65 (if FICA qualified) @ no fee but may have deductible & co-pay.






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






18. Covers disabilities occurring ONLY "off" job; benefits do not overlap work. comp. (i.e. Group plan).






19. 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






20. Receipt whereby coverage incepts conditionally upon submission of full consideration and that all underwriting reqs. are met.






21. A company providing lump sum buyout (50-90% of total) of Life policy; becomes owner & beneficiary & assumes premium payments; usually terminally ill viator.






22. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






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






24. Grows @ fixed interest rate for set term but cash value may adjust to prevailing rate (+ or -) if fully surrendered before term ends; % w/drawal ok.






25. Tendency of poorer risks to seek insurance.






26. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






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






28. Extreme form of Limited Pay Whole Life whereby entire premium is paid in a single payment.






29. 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.






30. Insurer has right to rescind policy & return premium if material misrepresentation in application is found w/in 1st 2 yrs.






31. Provides disability income during surgery recovery from life-threatening condition (& sometimes cosmetic surgery).






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






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






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






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






36. 4: Funds retained by Insurer until w/drawn - interest ONLY paid monthly (taxable); 5: Paid-up immediate annuity.






37. Prevents overinsuring in order to profit from disability by coordinating benefits between Insurers.






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






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






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






41. Annuity distributions prior to age 59 1/2 incur a 10% IRS penalty EXCEPT for death - disability - immediate annuity - or rollover.






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






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






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






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






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






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






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






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






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