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






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






3. Waives premium on Life policy for minor child until age 21 in event premium payor dies or becomes disabled.


4. Death benefit determined by Insured's financial goals & needs (minus assets).






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






6. 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.






7. 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.






8. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.






9. Specialized policy covering diagnostic & preventative dental care; often no deductible; co-insurance; expensive; may be included w/ medical plan.






10. Policy must be delivered w/ original (or copy of same) application attached.






11. Same as WL but can be "paid-up" early by paying larger premium for shorter payment period (i.e. 10 Pay Life - 20 Pay Life).






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






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






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






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






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






17. Beneficiary has right to leave death benefits / Insurer to protect $ from creditors; interest (taxable) paid on retained funds.






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






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






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






21. Partially state-funded benefits for low-income people whereby cost of care is shared between state & recipient - based on income.






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






23. Prepaid med. benefits for members w/ approved primary care M.D. (independent); low co-pay; non-PPO M.D. can be used at higher cost.






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






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






26. Savings account for medical expenses; Tax-deductible contributions; tax-deferred growth; tax-free for qualified use; taxable for non-qualified use.






27. Info already known; Info that should have been known; Waived info; Irrelevant info.






28. Provides % of monthly income benefit if Insured becomes disabled due to illness or accident.






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






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






31. 4: Funds retained by Insurer until w/drawn - interest ONLY paid monthly (taxable); 5: Paid-up immediate annuity.






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






33. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






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






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






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






37. 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.






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






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






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






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






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






43. Same as WL but w/ Level Term rider; upon death - pays monthly income for FULL term AFTER which pays full death benefit.






44. 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


45. Receipt whereby coverage incepts ONLY after underwriting approval.






46. Same as WL but premium low for 1st 5 yrs. - THEN has annual premium increases for set # yrs. - THEN level premium.






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






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






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






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