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






2. Agreement - Offer & acceptance; Consideration - application + premium; Legal capacity - licensed &/or competent; Legal purpose - public good.






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






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






5. Prepaid med. benefits for "subscribers" @ approved facilities; many non-profit; Blue Cross - Hospital stays; Blue Shield - M.D. costs.






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






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






8. Annuity distributions prior to age 59 1/2 incur a 10% IRS penalty EXCEPT for death - disability - immediate annuity - or rollover.






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






10. 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.






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






12. 'The inability to perform ANY gainful occupation'.






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






14. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.






15. Intentional deception; grounds for rescission.






16. Same as WL but premium low for set # yrs. - THEN premiums vary (+ or -) based on Insurer's investment returns - w/ Gmax.






17. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.






18. Federal law allows employees/their dependents to continue group benefits w/in 60 days after termination (if employer has 20+ employees); Insured pays premium @ 102% of group cost.






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






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






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






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






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






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






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






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






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






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






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






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






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






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






33. Experience - rates impacted by actual prior claim experience of actual group; Community - identical rates used for entire community - regardless of experience.






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






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






36. Responsible adult trustee designated to manage death benefits for minor child beneficiary until adulthood.






37. Policy owner has right to determine mode of premium payment but Insurer can charge admin. fee if not annual.






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






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






40. 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.






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






42. Qualified Annuity - Tax-deductible contributions & tax-deferred growth but fully taxable w/drawals.






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






44. A&H - A&S - Sickness only; Medical; Disability; Accident only; Travel accident; LTC; Medicare supplement; AD&D; Dental/Vision/Prescription; Limited.






45. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






46. Disability policy rider covering "the inability to perform some - but not all of your duties"; pays max. 50% of disability benefit for up to 6 mths.






47. 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.






48. Monthly; Quarterly; Semi-annually; Annually (cheapest due to less admin cost).






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






50. 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.






Can you answer 50 questions in 15 minutes?



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