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






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






3. War; elective cosmetic surgery; routine dental; work. comp.-covered claims; self-inflicted (intentional); gov't. facility treatment; LTC; private nursing.






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






5. Coverage remains in effect for 31 days past premium due date; benefits paid during grace period would be deducted from sum.






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






7. 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






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






9. 1: mortality probability charge; 2: Insurer's investment return; 3: expenses (admin costs - commissions). 1 - 2 = net; 1 - 2 + 3 = gross.






10. 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.






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






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






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






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






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






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






17. Unintentional - up to $1 -000 + legal $; Intentional - $1 -000-5 -000 + legal $; If harmful - misdemeanor + up to 1 yr. prison + up to $10 -000.






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






19. 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.






20. Policy owner must notify Insurer of loss either in writing - in person or by phone w/in 20 days.






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






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






23. Period of time following any children's survivor benefit & before benefits are provided to employee's widow/widower.






24. Intentional deception; grounds for rescission.






25. Basic Medical; Major Medical; Comprehensive Major Medical






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






27. Authorized (admitted) - can conduct business in state; Unauthorized (non-admitted) - cannot conduct business in state (w/ one exception).






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






29. 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.






30. Mandatory 100% employer-funded coverage for injuries/illnesses occurring "on" job; full-time employees only; exclusive remedy. Provides: 1: unlimited medical benefit; 2: survivor income replacement & funeral ($5 -000 max.); 3: disability benefit @ 66


31. Domestic - within home state; Foreign - outside home state; Alien - outside home country.






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






33. Pre-existing illness/injury; Waiting period; Elimination period; Probationary period; Benefits - Exclusions - Limitations; Underwriting reqs.






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






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






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






37. Identical to Incontestable Clause in Life policy.






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






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






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






41. Insured can seek legal action against Insurer for denial of claim only after 60 days and up to 3 yrs. after providing proof of loss.






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






43. Allows policy owner to w/draw set % of death benefit upon verification of terminal illness w/ expectancy 12-24 mths.; generally tax-free.






44. Info already known; Info that should have been known; Waived info; Irrelevant info.






45. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






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






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






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






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






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