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






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






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






4. Tendency of poorer risks to seek insurance.






5. 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.






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






7. Federally-sponsored health care for individuals 65+ &/or w/ certain disabilities; may run concurrent w/ group plan but group plan would act primary - THEN Medicare.






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






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






10. Authorized (admitted) - can conduct business in state; Unauthorized (non-admitted) - cannot conduct business in state (w/ one exception).






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






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






13. Federal law which allows health coverage portability when changing jobs - so long as previous coverage was in effect 63+ days; allows some tax deductibility for LTC.






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






15. Federal law allows employees/their dependents to continue group benefits w/in 60 days after termination (if employer has 20+ employees); Insured pays premium @ 102% of group cost.






16. 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.






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






18. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






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






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






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






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






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






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






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






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






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






28. Process which prevents claim denial as a result of false statement or promise (made by Insurer) - which was relied upon by Insured.






29. Two death benefit options - Option A: death benefit ONLY; Option B: death benefit + cash value; death benefit NOT guaranteed.






30. No-cost provision that authorizes Insurer to borrow from cash value to pay unpaid premiums after grace period; must ask for @ app. time.






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






32. Grows @ fixed interest rate for set term but cash value may adjust to prevailing rate (+ or -) if fully surrendered before term ends; % w/drawal ok.






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






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






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






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






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






38. 1: Fixed - guaranteed fixed monthly income & fixed interest rate; 2: Variable - unguaranteed; monthly income varies based on stocks/bond returns.






39. Receipt whereby coverage incepts ONLY after underwriting approval.






40. Receipt whereby coverage incepts conditionally upon submission of full consideration and that all underwriting reqs. are met.






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






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






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






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






45. Preferred or Preferred Smoker; Standard or Standard Smoker; Substandard; Denied.






46. 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






47. 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.






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






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






50. 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.







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