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






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






3. 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.






4. 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.






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






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






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






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






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






10. Receipt whereby coverage incepts ONLY after underwriting approval.






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






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






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






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






15. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.






16. Disability income is based on "earned income" (salary - bonus - commission) - not unearned income (interest - investment - rents).






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






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






19. Insured can seek legal action against Insurer for denial of claim only after 60 days and up to 3 yrs. after providing proof of loss.






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






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






22. Life license + NASD (FINRA) Series 6 or 7.






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






24. PURELY employer-funded account to reimburse employees for qualified medical expenses not covered by group health plan.






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






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






27. Insurance purchased by other Insurer(s) to spread or diversify risk; promotes industry stability.






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






29. Provides professional services - rehabilitation - training/re-training & related costs to assist Insured in returning to work.






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






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






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






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






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






35. Same as Term Life but provides living benefit (endowment) to policy owner if Insured survives entire term.






36. Provides for continued operation of business if partner dies - by allowing surviving partner(s) to buy deceased partner's interest in business.






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






38. 1: Cash (tax-free); 2: Apply to future premiums; 3: Retained by Insurer @ interest; 4: Buy Paid-up WL policy add-ons; 5: Pay-up existing policy; 6: Buy 1-yr. Term policy.






39. 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.






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






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






42. 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.






43. Summary of coverage including premium & mode of payment - death benefit - beneficiary(ies) - exclusions - & promise to pay.






44. Generally 10 days after policy delivery to cancel policy w/ full refund - except 30 days for seniors or for replacement policies.






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






46. Representation - oral or written statement made to best of knowledge or belief; Warranty - statement guaranteed/presumed/understood to be true.






47. Allows Insured to increase death benefit w/out medical exam (subject to age max.) w/ additional premium rate determined @ attained age.






48. Basic Medical; Major Medical; Comprehensive Major Medical






49. An irrevocable IRS classification of a policy (determined by the 7 Pay Test) whereby tax advantages are lost for all distributions ONLY.






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