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. IRS allows tax-free transfer of cash values between 2 LIKE policies (i.e. Life to Life - Annuity to Annuity - or Life to Annuity).






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






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






4. Privately-sold policies to provide benefits not covered by Medicare; divided into 12 plans listed alphabetically A - L; 30-day free look; guaranteed renewable.






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






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






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






8. Premiums determined by target cash values or death benefit; partial cash value w/drawals allowed; transparent policy w/ unbundled premium.






9. Same as Comprehensive Major Medical but w/ integrated deductible; much more expensive.






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






11. Treating or mitigating loss exposures through 1: avoidance; 2: retention (deductibles); 3: sharing; 4: reduction; or 5: transfer.






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






13. 1: Fixed - guaranteed fixed monthly income & fixed interest rate; 2: Variable - unguaranteed; monthly income varies based on stocks/bond returns.






14. 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.






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






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






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






18. Basic Medical; Major Medical; Comprehensive Major Medical






19. Intentional deception; grounds for rescission.






20. Grows @ fixed min. interest rate but w/ possible higher rate tied to equity index (i.e S&P Equity Index) appreciation; gains shared w/ Insurer.






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






22. A&H - A&S - Sickness only; Medical; Disability; Accident only; Travel accident; LTC; Medicare supplement; AD&D; Dental/Vision/Prescription; Limited.






23. 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.






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






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






26. Price of insurance per exposure unit.






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






28. Govt. organization providing health care benefits for dependents of military personnel.






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






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






31. 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.






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






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






34. Allows for Term policy renewal @ higher premium w/out medical exam; guarantees insurability; based on actual/attained age.






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






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






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






38. 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.






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






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






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






43. Upon notice - Insurer must provide Claim Form (Proof of Loss Form) to Insured w/in 15 days.






44. 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.






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






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






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






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






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






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







Sorry!:) No result found.

Can you answer 50 questions in 15 minutes?


Let me suggest you:

Browse all subjects

Browse all tests

Most popular tests



Major Subjects

Tests & Exams


AP
CLEP
DSST
GRE
SAT
GMAT

Browse all subjects

Browse all tests

Most popular tests