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






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






3. After 2-3 yrs. - Whole Life policy equity builds tax-deferred @ fixed interest rate until it equals death benefit; borrowable but taxable.






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






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






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






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






8. Unintentional - up to $1 -000 + legal $; Intentional - $1 -000-5 -000 + legal $; If harmful - misdemeanor + up to 1 yr. prison + up to $10 -000.






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






10. Receipt whereby coverage incepts ONLY after underwriting approval.






11. 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.






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






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. 1: Req. - unless self-employed; 2: 7-day wait for disability benefits; 3: Premium based on ex-mod; 4: Rates approved by CDI; 5: to sell - must satisfy education reqs.






15. Federally-funded but state-run program for truly indigent individuals & families providing medical care at Federal clinic.






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






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






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






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






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






21. Temp. coverage for set duration w/ death benefit ONLY (no cash value) - offers largest $ for lowest premium; renewable; convertible.






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






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






24. Benefits automatically increase annually based on inflationary index (i.e. Consumer Price Index) OR flat rate (5% max.).






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






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






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






28. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






29. Provides for continued operation of business if partner becomes disabled - by allowing other partner(s) to buy disabled partner's interest in business.






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






31. To "make whole again" w/out benefit or detriment; neither monetary profit nor loss.






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






33. Same as WL but death benefit increases annually - linked to Consumer Price Index; premium increases annually OR is set high from start.






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






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






36. 1: parties to contract; 2: insured party or life; 3: insurable interest - if 3rd party; 4: risks insured against; 5: policy period (term); 6: premium & mode.






37. War - 2 types; Suicide (1st 2 yrs.); Aviation (non-commercial); Hazardous hobbies; Criminal acts; Alcohol/Drug influenced.






38. Commercial (private) companies; HMOs; PPOs; Blue Cross/Blue Shield; Employer-sponsored plans; Government.






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






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






41. 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.






42. 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.






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






44. Extreme form of Limited Pay Whole Life whereby entire premium is paid in a single payment.






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






46. Basic Medical; Major Medical; Comprehensive Major Medical






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






48. Same as WL but death benefit decreases each yr. w/ dividends paid annually to offset decrease.






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






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