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. Allows for Term policy renewal @ higher premium w/out medical exam; guarantees insurability; based on actual/attained age.






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






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






4. Peril is the CAUSE of loss. Hazard is a condition that increases LIKELIHOOD of loss.






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






6. Guaranteed min. interest rate on cash value buildup but possible higher rate if short-term investment returns higher than expected.






7. Upon death - death benefit is paid + the aggregate of cash value accumulated to date; add-on to WL policy ONLY.






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






9. Palliative - treatment to manage pain; Curative - treatment to cure illness/condition.






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






11. Policy owner must notify Insurer of loss either in writing - in person or by phone w/in 20 days.






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






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






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






15. 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.






16. Accumulation or "pay-in" - contributions & interest earned are tax-deferred; Annuity or "pay-out" - monthly annuity (taxable) paid.






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






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






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






20. Revocable - changeable anytime w/ Change of Beneficiary Form; Irrevocable - not changeable w/out beneficiary permission.






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






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






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






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






25. Application submitted w/out premium; no coverage until submission of full consideration & completed Statement of Continued Good Health.






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






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






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






29. Level - fixed death benefit - premium fixed until renewal; Decreasing - death benefit decreases over term - premium fixed until renewal; Increasing - death benefit increases over term - premium fixed until renewal.






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






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






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






33. Provides 24 hr. health coverage both "on" & "off" job - but may cause coverage duplication & coordination challenges.






34. 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.






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






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






37. 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.






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






40. Mathematical law stating the larger # of occurrences - the more predictable the losses; used to calculate premiums.






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






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






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






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






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






46. Refund of 50-80% of premium (minus claims paid) every 5-10 yrs. OR age 65; expensive!






47. 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.






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






49. 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.






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