SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
Test your basic knowledge |
CA Life Agent Exam
Start Test
Study First
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. Experience - rates impacted by actual prior claim experience of actual group; Community - identical rates used for entire community - regardless of experience.
7 Pay Test
Experience vs. Community rating in Group Health plan
Parole Pardon Rule
Tax implications of Death Benefit & Cash Value
2. If 2 or more family members are injured in the same accident - only payment of a single deductible is required.
Medicare Supplement or Medigap policy
Common Accident provision
Common Life Exclusions
Life insurance policy
3. Policy covering minor child; premium fixed but death benefit increases by 5 times @ age 18 or 21.
Medicare Supplement or Medigap policy
Tax implications of Dividends - Loans & Interest
Juvenile Life (aka Jumping Juvenile) policy
Workers' Compensation insurance
4. Same as WL but w/ Decreasing Term rider; upon death - pays monthly income for REMAINING term AFTER which pays full death benefit.
Medicare Part D
Proof of Loss provision
Binding receipt (aka Temporary Insurance Agreement)
Family Income policy
5. Receipt whereby coverage incepts conditionally upon submission of full consideration and that all underwriting reqs. are met.
Parole Pardon Rule
Insurability Type Conditional receipt
Beneficiary provisions
Time Limit on Certain Defenses provision
6. Upon notice - Insurer must provide Claim Form (Proof of Loss Form) to Insured w/in 15 days.
Phases of an annuity
Survivorship (aka "Last to die") policy
1035 Exchange
Claim Form (aka Proof of Loss Form) provision
7. Identical to Incontestable Clause in Life policy.
Considerations in replacing Health insurance
Plans A-L of Medical Supplement or Medigap
Types of Insurers (miscellaneous)
Time Limit on Certain Defenses provision
8. Temp. coverage for set duration w/ death benefit ONLY (no cash value) - offers largest $ for lowest premium; renewable; convertible.
Presumptive disability
Spendthrift provision
Common Disability Exclusions
Term Life policy
9. War; elective cosmetic surgery; routine dental; work. comp.-covered claims; self-inflicted (intentional); gov't. facility treatment; LTC; private nursing.
Doctrine of Comity
Dependent coverage
Exclusions for Major Medical plan
Universal (aka Flexible Premium Adjustable) Life policy (3 of 4)
10. Two death benefit options - Option A: death benefit ONLY; Option B: death benefit + cash value; death benefit NOT guaranteed.
Non-forfeiture options for WL policy
Occupational Disability policy
Universal (aka Flexible Premium Adjustable) Life policy (4 of 4)
Common Accident provision
11. Death benefit is NOT taxable. Cash value grows tax-deferred but cost basis (base premium) is not taxable - only interest is.
Common Life Exclusions
IRS Penalties for Annuities
Insuring clause/provision (aka Insuring Agreement)
Tax implications of Death Benefit & Cash Value
12. Receipt whereby coverage incepts immediately upon submission of full consideration - unless declined & premium refunded.
Policy loans
Binding receipt (aka Temporary Insurance Agreement)
Types of Insurers (miscellaneous)
Split Dollar Plan
13. Type of partial disability rider - which pays fluctuating % of lost income w/out time limit.
Types of Insurers (miscellaneous)
Residual disability rider
Requirements to sell variable life products
Doctrine of Comity
14. Benefits automatically increase annually based on inflationary index (i.e. Consumer Price Index) OR flat rate (5% max.).
Graded Premium Whole Life policy
Types of Accident & Health insurance
Endowment Life policy
Cost of Living Adjustment (COLA) Disability rider
15. The state in which the contract is accepted or delivered is the state that possesses regulatory jurisdiction over Group plan.
Exclusions to Work. Comp.
Tax implications of an Estate
Doctrine of Comity
Requirements to sell variable life products
16. 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.
Departments of an Insurer
Convertibility provision
Revocable vs. Irrevocable beneficiary
Errors & Omissions (E&O)
17. An unintentional mistake committed by an insurance representative; may be covered by E&O insurance.
Cost of Living Adjustment (COLA) Life rider
Departments of an Insurer
Medicare Part B (aka Supplemental Medical Insurance or SMI)
Errors & Omissions (E&O)
18. War - 2 types; Suicide (1st 2 yrs.); Aviation (non-commercial); Hazardous hobbies; Criminal acts; Alcohol/Drug influenced.
Experience vs. Community rating in Group Health plan
Free Look provision
Entire Contract provision
Common Life Exclusions
19. Provides disability income during surgery recovery from life-threatening condition (& sometimes cosmetic surgery).
Common Disability Exclusions
Spendthrift provision
Transplant/Cosmetic Surgery rider
Palliative vs. Curative care
20. Same as Term Life but provides living benefit (endowment) to policy owner if Insured survives entire term.
Guaranteed Insurability Life rider
Endowment Life policy
Types of Insurers (by ownership)
Annuity Classifications (5 of 5): # of lives
21. Provides accidental death benefit @ full $ of "principal sum". Dismemberment is paid only @ 50% principal sum ("capital sum").
Entire Contract provision
Return of Premium rider
Parole Pardon Rule
Accidental Death & Dismemberment (AD&D) Life policy
22. Hybrid of HMO & PPO w/ greater flexibility on choosing specialists outside network w/ benefits still provided but @ higher co-pay.
Underwriting risk categories
Variable Life policy (1 of 2)
Types of Medical Plans
Point of Service plan
23. Allows for Term policy renewal @ higher premium w/out medical exam; guarantees insurability; based on actual/attained age.
Return of Premium rider
7 Pay Test
Renewability provision
Endowment Life policy
24. Mathematical law stating the larger # of occurrences - the more predictable the losses; used to calculate premiums.
Reinstatement provision
Comprehensive Major Medical plan
Law of Large Numbers
AIDS/HIV discrimination
25. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)
Common Accident provision
Business Overhead Expense (BOE) Disability policy
Graded Premium Whole Life policy
Annuity Classifications (1 of 5): How premium is paid
26. 4: Funds retained by Insurer until w/drawn - interest ONLY paid monthly (taxable); 5: Paid-up immediate annuity.
Dependent coverage
Reinstatement provision
Settlement options for Life policy (2 of 2)
Key Employee policy
27. Pays death benefit until age 100 or death; builds equity (cash value); may be transferred or sold; generally level premium.
24 Hour Coverage (CA)
Whole (aka Permanent or Straight) Life policy
Accidental Death (aka Multiple Indemnity) rider
Juvenile Life (aka Jumping Juvenile) policy
28. Extreme form of Limited Pay Whole Life whereby entire premium is paid in a single payment.
Single Pay Whole Life policy
Tax implications of an Annuity (1 of 2)
Legal Action provision
Loss of Earnings Test
29. Prohibited w/ regard to testing for people of same class; test results must remain confidential; coverage may be declined (once discovered).
Types of Licensed Producers
AIDS/HIV discrimination
Tax implications of Disability policy
Waiver of Premium provision
30. 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.
Doctrine of Comity
Renewability provision
Valid life insurance contracts must identify...
Limited Pay Whole Life policy
31. Mathematical calculation based on overall FICA contributions used to determine retirement/disability/survivorship benefit.
1035 Exchange
Non-Occupational Disability policy
Primary Insurance Amount (PIA)
Modified Premium Whole Life policy
32. Same as WL but w/ Level Term rider; upon death - pays monthly income for FULL term AFTER which pays full death benefit.
Whole (aka Permanent or Straight) Life policy
Family Maintenance policy
Factors that determine premium
Change of Occupation provision
33. Peril is the CAUSE of loss. Hazard is a condition that increases LIKELIHOOD of loss.
Peril vs. Hazard
Social Security (aka Old Age Survivors Disability Health Insurance or OASDHI)
Medicare Part A & B "Gaps"
Convertibility provision
34. 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.
Reinstatement provision
Types of Insurers (by ownership)
Consolidated Omnibus Budget Reconciliation Act (COBRA)
Phases of an annuity
35. Provides for continued operation of business if partner becomes disabled - by allowing other partner(s) to buy disabled partner's interest in business.
Business Continuation (aka Buy-Sell) Disability policy
Types of Medical Plans
Occupational Disability policy
Medicaid/Medi-Cal
36. 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.
Insurability Type Conditional receipt
Reinsurance
Dividend options
Health Insurance Portability and Accountability Act (HIPAA)
37. Written policy terms supersede oral statements made prior to policy issue.
Business Continuation (aka Buy-Sell) policy
Long Term Care (LTC) policy
Parole Pardon Rule
Suicide clause/provision
38. 'The inability to perform ANY gainful occupation'.
Non-Occupational Disability policy
Annuity Classifications (5 of 5): # of lives
Types of Insurers (by authorization)
Total disability (any-occupational definition)
39. Policy owner must notify Insurer of loss either in writing - in person or by phone w/in 20 days.
Notice of Claim provision
Adjustable Whole Life policy
Relation of Earnings to Insurance provision
Peril vs. Hazard
40. Privately-provided or Medicare-provided (if no private carrier) prescription drug plans for qualified individuals but w/ premium - deductible & co-pay.
Return of Premium rider
Types of Insurers (by ownership)
Medicare Part D
Universal (aka Flexible Premium Adjustable) Life policy (2 of 4)
41. 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.
Annuity surrender charges
Health Insurance Portability and Accountability Act (HIPAA)
Tax implications of an Annuity (1 of 2)
Dividends
42. Compensates business for loss due to disability of key employee; premiums not deductible but benefits tax-free.
Business Continuation (aka Buy-Sell) Disability policy
Valid life insurance contracts must identify...
Key Employee Disability policy
Relation of Earnings to Insurance provision
43. Time period preceding each disability during which benefits are not paid; longer elimination periods = cheaper premium.
Elimination (aka Waiting) period
24 Hour Coverage (CA)
Primary Insurance Amount (PIA)
Loss exposure
44. Summary of coverage including premium & mode of payment - death benefit - beneficiary(ies) - exclusions - & promise to pay.
Viatical Settlement Provider (VSP)
Insuring clause/provision (aka Insuring Agreement)
Whole (aka Permanent or Straight) Life policy
Medical cost containment (aka Managed care)
45. Prepaid med. benefits for "subscribers" @ approved facilities; many non-profit; Blue Cross - Hospital stays; Blue Shield - M.D. costs.
Considerations in replacing Health insurance
Medical cost containment (aka Managed care)
Blue Cross/Blue Shield
Blackout Period
46. Actual/Expressed - written powers; Implied - unwritten but customary practices; Apparent - perceived powers.
Annuity Classifications (5 of 5): # of lives
Variable Life policy (1 of 2)
Modified Premium Whole Life policy
Types of Agency Authority
47. Waives premium upon disability of Insured until return to work; disability must persist for 90 days or longer; 1st 90 day premiums refunded after 90 days.
Split Dollar Plan
Employer-Administered plan
Law of Large Numbers
Waiver of Premium provision
48. Any person - assoc. - org. - partnership - business trust - LLC - or corp. capable of making an insurance contract.
Loss exposure
Common Disaster (Simultaneous Death Act) clause/provision
Key Employee policy
Insurer (as defined by CIC)
49. Provides increased death benefit if death occurs w/in 90 days & as result of accident; relatively INexpensive add-on.
Annuity Classifications (3 of 5): Source of income
Modified Endowment Contract (MEC)
Partial disability rider
Accidental Death (aka Multiple Indemnity) rider
50. Excludes coverage for suicide during 1st 2 yrs. ONLY but - if it does - all premiums must be returned to beneficiary.
Valid life insurance contracts must identify...
Types of Licensed Producers
Total disability (any-occupational definition)
Suicide clause/provision