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






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






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






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






5. No-charge annuity w/drawals allowed up to 10% of total - THEN penalized on sliding scale based on # policy yrs.; conditionally waived.






6. Tendency of poorer risks to seek insurance.






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






8. 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.






9. Financial interest in insured party that must exist @ time of application OR policy issuance. Requires consent (except minors).






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






11. Primary - if 2 or more - equally shared; Contingent (Secondary) - only if primary dead; Tertiary - only if both primary & secondary dead. If none listed - goes to estate.






12. Agents - represent Insurer; Brokers - represent themselves & Insured; Solicitors - represent one agent to solicit leads.






13. 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






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






15. Temp. coverage for set duration w/ death benefit ONLY (no cash value) - offers largest $ for lowest premium; renewable; convertible.






16. Same as WL but policy owner can adjust death benefit w/ corresponding premium adjustments; mostly obsolete.






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






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






19. Periodic return of premium to policy owners from Mutual (Par) Companies; not guaranteed & not taxable as income; may be used in 6 ways.






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






21. 1: Immediate benefits rec'd w/in 30 days but premium must be paid by lump sum; 2: Deferred - usually until retirement.






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






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






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






25. Provides accidental death benefit @ full $ of "principal sum". Dismemberment is paid only @ 50% principal sum ("capital sum").






26. Potential circumstance that could cause a loss; measured in dollars.






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






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






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






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






31. 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.






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






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






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






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






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






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






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






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






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






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






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






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






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






45. 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.






46. Provides disability income during surgery recovery from life-threatening condition (& sometimes cosmetic surgery).






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






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






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






50. Policy owner has right to determine mode of premium payment but Insurer can charge admin. fee if not annual.







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