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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. 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.






2. To "make whole again" w/out benefit or detriment; neither monetary profit nor loss.






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






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






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






6. Fraternal - non-profit - members only; Reciprocal - unincorp'd org. - members insure each other; Lloyd's Assoc. - groups sharing risks; Surplus lines - special market risks.






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






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






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






10. A lapsed policy may be reinstated if not longer than 3-5 yrs. - & proof of insurability re-established - & back premiums + interest paid.






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






12. Hybrid of HMO & PPO w/ greater flexibility on choosing specialists outside network w/ benefits still provided but @ higher co-pay.






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






14. 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.






15. 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.






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






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






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






19. 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.






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






21. Policy owner has 90 days from date of loss to submit proof of loss to Insurer; valid claim must be paid immediately upon receipt.






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






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






24. Death benefits & premium automatically increase annually based on inflationary index (i.e. Consumer Price Index).






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






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






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






28. 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.






29. An irrevocable IRS classification of a policy (determined by the 7 Pay Test) whereby tax advantages are lost for all distributions ONLY.






30. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)






31. Unilateral - Insurer provides contract; Adhesion - parties must adhere to terms; Aleatory - benefits may not inure equally.






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






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






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






35. Combination of Basic Medical & Major Medical in one policy; Basic pays 1st - then Major Medical w/ corridor deductible.






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






37. 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.






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






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






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






41. 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.






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






43. Palliative - treatment to manage pain; Curative - treatment to cure illness/condition.






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






45. 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.






46. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






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






48. 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.






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






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







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