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. Allows Term policy conversion to Permanent policy w/out medical exam; must be identical or lower death benefit; based on either attained OR original age.






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






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






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






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






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






7. 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.






8. 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.






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






10. 1: Straight aka Pure Life - lifetime income but no survivorship refund; 2: Life w/ Period Certain - lifetime income w/ death benefit of monthly annuity for remaining predetermined term. 3: Annuity Certain - monthly income paid for predetermined term






11. Fixed premium w/ guaranteed min. death benefit that may increase due to higher than expected investment returns.






12. Prepaid med. benefits for members ONLY w/ approved primary care M.D. (HMO employee); focus on preventative care; low co-pay.






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






14. If 2 or more family members are injured in the same accident - only payment of a single deductible is required.






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






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






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






18. 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.






19. Death benefit is NOT taxable. Cash value grows tax-deferred but cost basis (base premium) is not taxable - only interest is.






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






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






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






23. Provides for continued operation of business if partner dies - by allowing surviving partner(s) to buy deceased partner's interest in business.






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






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






26. War - 2 types; Suicide (1st 2 yrs.); Aviation (non-commercial); Hazardous hobbies; Criminal acts; Alcohol/Drug influenced.






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






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






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






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






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






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






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






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






35. Application submitted w/out premium; no coverage until submission of full consideration & completed Statement of Continued Good Health.






36. Same as WL but cash value increases @ current interest rates (not set); premium can start low or high & may change.






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






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






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






40. Savings account for medical expenses; Tax-deductible contributions; tax-deferred growth; tax-free for qualified use; taxable for non-qualified use.






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






42. Monthly; Quarterly; Semi-annually; Annually (cheapest due to less admin cost).






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






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






45. 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.






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






47. 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






48. Covers disabilities occurring both "on" AND "off" job; "on" job benefits paid in addition to work. comp. - if applicable (i.e. individual plan).






49. 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






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