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






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






3. 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.






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






5. 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.






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






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






8. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)






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






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






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






12. Privately-provided or Medicare-provided (if no private carrier) prescription drug plans for qualified individuals but w/ premium - deductible & co-pay.






13. Allows Insured to increase benefit w/out medical exam (subject to age max.) w/ additional premium rate determined @ attained age; must prove income increase.






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






15. A company providing lump sum buyout (50-90% of total) of Life policy; becomes owner & beneficiary & assumes premium payments; usually terminally ill viator.






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






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






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






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






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






21. 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.






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






23. Mortality is the statistical possibility of death @ each age. Morbidity is the statistical possibility & extent of disability @ each age.






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






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






26. Same as WL but premium low for 1st 3-5 yrs. - THEN has one-time premium increase.






27. 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.






28. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.






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






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






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






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






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






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






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






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






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






38. Receipt whereby coverage incepts immediately upon submission of full consideration - unless declined & premium refunded.






39. Pre-existing illness/injury; Waiting period; Elimination period; Probationary period; Benefits - Exclusions - Limitations; Underwriting reqs.






40. Same as WL but w/ adjustable death benefit (& corresponding premium) & over-fund option but w/ annually renewable term (ART).






41. Facultative - case by case agreements; Automatic/Treaty - automatic acceptance of risk percentage per previous agreement.






42. Dependent children are covered until 19 or 23 (full-time student only) or until self-sufficient (if handicapped).






43. Both Contributory & Non-contributory Group policies are deductible to employer (not employee) but benefits are taxable. Individual policy premium is NOT deductible but benefit is received tax-free.






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






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






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






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






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






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






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