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






2. 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.






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






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






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






6. Req. by CA statute & may provide workers coverage for action-over claims.






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






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






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






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






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






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






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






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






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






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






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






18. Plan A is the CORE benefit & is least expensive; All other plans include Plan A + additional benefits. Plans F & J are high deductible. K & L are both deductible & co-pay plans.






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






20. Allows Insured to increase death benefit w/out medical exam (subject to age max.) w/ additional premium rate determined @ attained age.






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






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






23. Provides benefit during Social Security "black-out" period - up to 1 yr.






24. Prepaid med. benefits for "subscribers" @ approved facilities; many non-profit; Blue Cross - Hospital stays; Blue Shield - M.D. costs.






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






26. Policy must be delivered w/ original (or copy of same) application attached.






27. After 2-3 yrs. - Whole Life policy equity builds tax-deferred @ fixed interest rate until it equals death benefit; borrowable but taxable.






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






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






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






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






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






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






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






35. Allows for use of HMO/PPO or other private carrier to provide expanded benefits @ additional premium & if enrolled in BOTH Parts A & B.






36. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.






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






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






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






40. 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.






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






42. 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.






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






44. Taxable income (unlike individual plans); can be either short-term - 13-52 wks. max. or long-term - longer than 52 wks.






45. 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.






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






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






48. 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.






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






50. An unintentional mistake committed by an insurance representative; may be covered by E&O insurance.