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. Time extension of benefits based on "qualifying" event. 18 mth. extension if laid off or fired; 36 mth. extension if death - divorce or child leaves home.






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






3. Process whereby a reinsurer reinsures w/ another reinsurer.






4. 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.






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






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






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






8. Must be delivered in person or by certified - registered or 1st-class mail w/ signature - unless waived by Insurance Commissioner.






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






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






11. Annuity distributions prior to age 59 1/2 incur a 10% IRS penalty EXCEPT for death - disability - immediate annuity - or rollover.






12. Part A - Inpatient hospital deductibles vary on # of days; limited reserve days; finite benefit; 1st 3 pints blood; Part B - 20% co-payment.






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






14. 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.






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






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






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






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






19. 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.






20. Same as WL but death benefit increases annually - linked to Consumer Price Index; premium increases annually OR is set high from start.






21. No deductible coverage for: daily room/board; ancillary costs; surgeon &/or physician expense (for added premium).






22. Federal program financed by payroll taxes provided equally by both employer & employee OR entirely by individual (if self-employed). Provides benefits for: Medicare @ age 65+; retirement; $255 lump sum death benefit; (limited) disability; survivors;






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






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






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






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






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






28. Reappearance of disability w/in 6 mth. period after "recovery" from same disability is considered recurrence - not new disability.






29. 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.






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






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






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






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






34. Upon death - death benefit is paid + the aggregate of premiums paid to date; add-on to Term policy ONLY.






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






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






37. Funding mechanism whereby employer & employee share cost of premium. Upon death - benefit is shared between employer & beneficiary.






38. Expands individual WL policy to include Term Life for dependents (spouse - children - etc.).






39. Benefits automatically increase annually based on inflationary index (i.e. Consumer Price Index) OR flat rate (5% max.).






40. Coverage for catastrophic loss w/ high limits - front end deductible; co-insurance (80/20%); blanket coverage; stop loss max.






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






42. 1: Straight aka Pure Life - lifetime income but no survivorship refund; 2: Life w/ Period Certain - lifetime income w/ death benefit of monthly annuity for remaining predetermined term. 3: Annuity Certain - monthly income paid for predetermined term






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






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






45. Written policy terms supersede oral statements made prior to policy issue.






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






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






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






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






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