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






2. Same as WL but w/ Decreasing Term rider; upon death - pays monthly income for REMAINING term AFTER which pays full death benefit.






3. Compensates business for loss due to death or disability of key employee; premiums not deductible but benefits tax-free.






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






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






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






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






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






9. Responsible adult trustee designated to manage death benefits for minor child beneficiary until adulthood.






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






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






12. Summary of coverage including premium & mode of payment - death benefit - beneficiary(ies) - exclusions - & promise to pay.






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






14. Disability income is based on "earned income" (salary - bonus - commission) - not unearned income (interest - investment - rents).






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






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






17. Federal law which prohibits companies w/ 20+ employees from denying work & medical benefits to employees due to age.






18. Employer w/ 25 or less employees must offer all eligible employees @ least 2 medical plan options where pre-existing conditions can't be excluded more than 1 yr.






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






20. Upon death - death benefit is paid + the aggregate of cash value accumulated to date; add-on to WL policy ONLY.






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






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






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






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






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






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






27. 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.






28. Tendency of poorer risks to seek insurance.






29. Same as WL but premium low for set # yrs. - THEN premiums vary (+ or -) based on Insurer's investment returns - w/ Gmax.






30. 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.






31. Commercial (private) companies; HMOs; PPOs; Blue Cross/Blue Shield; Employer-sponsored plans; Government.






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






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






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






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






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






37. Provides increased death benefit if death occurs w/in 90 days & as result of accident; relatively INexpensive add-on.






38. If Insured & primary beneficiary die due to same act (w/in 14 days) - primary assumed 1st to die & contingent beneficiary paid death benefit.






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






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






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






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






43. Prepaid med. benefits for members w/ approved primary care M.D. (independent); low co-pay; non-PPO M.D. can be used at higher cost.






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






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






46. Conditional - coverage is conditional; Personal - parties are people; Good faith - honesty/integrity; Fiduciary - req's financial trust.






47. Provides medical & personal services for people needing extended assistance w/ Activities of Daily Living (ADL). Other benefits include: assisted living care; respite care; hospice care; adult day care.






48. If Insured changes to: more hazardous job - benefits reduced; less hazardous job - premiums reduce.






49. Dividends are NOT taxable but interest is. Loan interest is NOT tax-deductible. Interest paid by Insurer on retained funds is taxable.






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