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






2. Non-qualified Annuity - Non-deductible contributions & tax-deferred growth. At pay-out - tax-free principal but taxable growth.






3. Provides usual & customary business expenses (rent - utilities - salaries - mortgage) if owner becomes disabled; premiums deductible - benefits taxable.






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






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






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






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






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






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






10. 1: Individual; 2: Joint - multiple annuitants paid until 1st dies; 3: Joint & Survivor - multiple annuitants paid until 1st dies THEN survivors paid but @ reduced $.






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






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






13. 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.






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






15. 1: Fixed - guaranteed fixed monthly income & fixed interest rate; 2: Variable - unguaranteed; monthly income varies based on stocks/bond returns.






16. Coverage remains in effect for 31 days past premium due date; benefits paid during grace period would be deducted from sum.






17. Provides hospital insurance automatically @ age 65 (if FICA qualified) @ no fee but may have deductible & co-pay.






18. Type of partial disability rider - which pays fluctuating % of lost income w/out time limit.






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






20. Waives premium upon disability of Insured until return to work; disability must persist for 6 mths. or longer. Cash value & dividends not affected.






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






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






23. Fraternal - non-profit - members only; Reciprocal - unincorp'd org. - members insure each other; Lloyd's Assoc. - groups sharing risks; Surplus lines - special market risks.






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






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






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






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






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






29. Mandatory 100% employer-funded coverage for injuries/illnesses occurring "on" job; full-time employees only; exclusive remedy. Provides: 1: unlimited medical benefit; 2: survivor income replacement & funeral ($5 -000 max.); 3: disability benefit @ 66

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






31. 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.






32. An unintentional mistake committed by an insurance representative; may be covered by E&O insurance.






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






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






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






36. Death benefit is NOT taxable. Cash value grows tax-deferred but cost basis (base premium) is not taxable - only interest is.






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






38. 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.






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






40. Receipt whereby coverage incepts ONLY after underwriting approval.






41. Group plan initially self-funded by employer (like SIR); after which - group plan Insurer covers (up to policy limit); requires TPA.






42. Allows policy owner to w/draw set % of death benefit upon verification of terminal illness w/ expectancy 12-24 mths.; generally tax-free.






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






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






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






46. 'The inability to perform ANY reasonable occupation based on education - training or experience'.






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






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






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






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