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






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






3. 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.






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






5. Federal program financed by payroll taxes provided equally by both employer & employee OR entirely by individual (if self-employed). Provides benefits for: Medicare @ age 65+; retirement; $255 lump sum death benefit; (limited) disability; survivors;






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






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






8. Policyholders - Mutual (participating) co. - may pay dividends; Stockholders - Stock (non-participating) co. - no dividends.






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






10. Provides supplemental coverage for physician/surgeon fees if enrolled (during enrollment period ONLY) & pay monthly premium w/ deductible and co-insurance.






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






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






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






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






15. Multiple small employers w/ common affiliation (trade assoc. OR Chamber of Commerce) band together to purchase group plan.






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






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






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






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






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






21. No-cost provision that authorizes Insurer to borrow from cash value to pay unpaid premiums after grace period; must ask for @ app. time.






22. 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.






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






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






25. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.






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






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






28. Provides increased death benefit if death occurs w/in 90 days & as result of accident; relatively INexpensive add-on.






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






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






31. Tendency of poorer risks to seek insurance.






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






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






34. Process whereby a reinsurer reinsures w/ another reinsurer.






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






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






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






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






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






40. WL policy covering 2 or more Insureds but ONLY payable upon death of LAST Insured - generally low premium but high death benefit.






41. 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.






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






43. Waives premium on Life policy for minor child until age 21 in event premium payor dies or becomes disabled.

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






45. Financial interest in insured party that must exist @ time of application OR policy issuance. Requires consent (except minors).






46. 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.






47. Group plan initially self-funded by employer (like SIR); after which - group plan Insurer covers (up to policy limit); requires TPA.






48. 1: Fixed - guaranteed fixed monthly income & fixed interest rate; 2: Variable - unguaranteed; monthly income varies based on stocks/bond returns.






49. Insurer has right to rescind policy & return premium if material misrepresentation in application is found w/in 1st 2 yrs.






50. Expands individual WL policy to include Term Life for dependents (spouse - children - etc.).






Can you answer 50 questions in 15 minutes?



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