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






2. An unintentional mistake committed by an insurance representative; may be covered by E&O insurance.






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






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






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






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






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






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






9. Same as WL but cash value increases @ current interest rates (not set); premium can start low or high & may change.






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






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






12. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.






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






14. 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.






15. Excludes coverage for specific injury/illness either temporarily or permanently in order to eliminate pre-existing condition.






16. Prohibited w/ regard to testing for people of same class; test results must remain confidential; coverage may be declined (once discovered).






17. Price of insurance per exposure unit.






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






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






20. Allows Term policy conversion to Permanent policy w/out medical exam; must be identical or lower death benefit; based on either attained OR original age.






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






22. Permanent disability due to total loss of sight - hearing - speech or use of 2 + limbs; benefits paid even while continuing to work.






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






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






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






26. 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.






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






28. Agents - represent Insurer; Brokers - represent themselves & Insured; Solicitors - represent one agent to solicit leads.






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






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






31. 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.






32. 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.






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






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






35. Written contract that provides INCOME @ high interest rate for fixed period OR for annuitant's lifetime w/ possible death benefit.






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






37. 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.






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






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






40. Pure risk involves chance of loss ONLY (accident or misfortune). Speculative risk involves chance of loss OR gain (gambling - stock investment).






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






42. Authorized (admitted) - can conduct business in state; Unauthorized (non-admitted) - cannot conduct business in state (w/ one exception).






43. No coverage for injuries while: 1: @ voluntary social event; 2: self-inflicted (intentional); 3: under alcohol/drug influence; 4: committing criminal act; 5: aggressor in workplace fight; 6: participating in athletic event (non-pro. athletes) 7: par






44. Treating or mitigating loss exposures through 1: avoidance; 2: retention (deductibles); 3: sharing; 4: reduction; or 5: transfer.






45. Upon notice - Insurer must provide Claim Form (Proof of Loss Form) to Insured w/in 15 days.






46. Covers disabilities occurring both "on" AND "off" job; "on" job benefits paid in addition to work. comp. - if applicable (i.e. individual plan).






47. 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.






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






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






50. IRS allows tax-free transfer of cash values between 2 LIKE policies (i.e. Life to Life - Annuity to Annuity - or Life to Annuity).