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. Intentional deception; grounds for rescission.
Types of Insurers (miscellaneous)
Accidental Death & Dismemberment (AD&D) Life policy
Fraud
Variable Universal Life policy
2. Upon death - death benefit is paid + the aggregate of premiums paid to date; add-on to Term policy ONLY.
Transplant/Cosmetic Surgery rider
Return of Premium rider
Consolidated Omnibus Budget Reconciliation Act (COBRA)
Indeterminate Premium Whole Life policy
3. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.
Enhanced Ordinary (aka Extraordinary) Whole Life policy
Levels of Long Term Care provided
Trusts
Supplemental Major Medical plan
4. Federal law which prohibits companies w/ 20+ employees from denying work & medical benefits to employees due to age.
Needs approach (most common)
Types of Accident & Health insurance
Long Term Care (LTC) policy
Age Discrimination in Employment Act (ADEA)
5. Must be delivered in person or by certified - registered or 1st-class mail w/ signature - unless waived by Insurance Commissioner.
Health Reimbursement Account (HRA)
Universal (aka Flexible Premium Adjustable) Life policy (1 of 4)
Policy delivery
Employee Retirement Income Security Act (ERISA)
6. Actual/Expressed - written powers; Implied - unwritten but customary practices; Apparent - perceived powers.
Elimination (aka Waiting) period
Estoppel
Types of Agency Authority
CHAMPUS (aka TriCare)
7. Insurer has right to rescind policy & return premium if material misrepresentation in application is found w/in 1st 2 yrs.
Market Value Adjusted (aka Modified Guaranteed) annuity
Types of Medical Plans
Current Assumption (aka Interest-Sensitive) Whole Life policy
Incontestability clause/provision
8. Representation - oral or written statement made to best of knowledge or belief; Warranty - statement guaranteed/presumed/understood to be true.
Applicant Representations vs. Warranties
Annuity surrender charges
Misstatement of Age/Sex provision
Variable Life policy (2 of 2)
9. 1: Immediate benefits rec'd w/in 30 days but premium must be paid by lump sum; 2: Deferred - usually until retirement.
Types of Term Life policies
Annuity Classifications (2 of 5): When benefits begin
Universal (aka Flexible Premium Adjustable) Life policy (4 of 4)
Time Limit on Certain Defenses provision
10. Savings account for medical expenses; Tax-deductible contributions; tax-deferred growth; tax-free for qualified use; taxable for non-qualified use.
Common Accident provision
Medical Savings Account (MSA) & Health Savings Account (HSA)
CA Work. Comp. Statutes
Annuity Classifications (3 of 5): Source of income
11. If Insured changes to: more hazardous job - benefits reduced; less hazardous job - premiums reduce.
Survivorship (aka "Last to die") policy
Change of Occupation provision
Total disability (as commonly defined)
Claim Form (aka Proof of Loss Form) provision
12. Coverage for catastrophic loss w/ high limits - front end deductible; co-insurance (80/20%); blanket coverage; stop loss max.
Loss exposure
Major Medical plan
Human Life Value approach
Medi-Cal Share Cost plan
13. Federal law which prohibits companies w/ 15+ employees from decreasing coverage benefits for women affected by pregnancy or childbirth.
Insuring clause/provision (aka Insuring Agreement)
Equity Indexed annuity
Civil Rights/Pregnancy Discrimination Act
Modified Premium Whole Life policy
14. Same as WL but cash value put in investment vehicles chosen by policy owner (stocks - bonds - munis.); cash value NOT guaranteed.
Types of Accident & Health insurance
Accidental Death (aka Multiple Indemnity) rider
Variable Life policy (1 of 2)
Penalties for violating AIDS/HIV privacy laws
15. An attempt to contain costs by employing various strategies - including wellness programs - preventative testing - outpatient & alternative procedures.
Types of Accident & Health (A&H) providers
CA Work. Comp. Statutes
Medical cost containment (aka Managed care)
Insurance contract characteristics (2 of 2)
16. Same as Comprehensive Major Medical but w/ integrated deductible; much more expensive.
Supplemental Major Medical plan
Policy loans
Medicare Supplement or Medigap policy
Enhanced Ordinary (aka Extraordinary) Whole Life policy
17. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.
Rehabilitation rider
Variable Universal Life policy
7 Pay Test
Settlement options for Life policy (1 of 2)
18. 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.
Survivorship (aka "Last to die") policy
Incontestability clause/provision
Market Value Adjusted (aka Modified Guaranteed) annuity
Rescission
19. Provides for continued operation of business if partner becomes disabled - by allowing other partner(s) to buy disabled partner's interest in business.
Current Assumption (aka Interest-Sensitive) Whole Life policy
Business Continuation (aka Buy-Sell) Disability policy
Types of reinsurance
Types of Renewability provisions
20. Although death benefit is tax-free - it is included in gross estate value so federal &/or state taxes may apply to a portion in excess of fixed federal limit.
Occupational Disability policy
Waiver of Premium provision
Group Disability plan
Tax implications of an Estate
21. 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.
Supplemental Major Medical plan
Current Assumption (aka Interest-Sensitive) Whole Life policy
Valid life insurance contracts must identify...
Non-Occupational Disability policy
22. Hybrid of HMO & PPO w/ greater flexibility on choosing specialists outside network w/ benefits still provided but @ higher co-pay.
Comprehensive Major Medical plan
Point of Service plan
Multiple Employer Trust (MET) aka Multiple Employer Welfare Association (MEWA)
Underwriting risk categories
23. Physical - slippery floor; Moral - dishonest acts; Morale - carelessness or recklessness.
Elements to contract
Types of hazards
Concealment exceptions
Single Pay Whole Life policy
24. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)
Partial disability rider
Annuity Classifications (1 of 5): How premium is paid
Spendthrift provision
Rescission
25. Time period preceding each disability during which benefits are not paid; longer elimination periods = cheaper premium.
Rehabilitation rider
Dependent coverage
Elimination (aka Waiting) period
Tax implications of Death Benefit & Cash Value
26. Policy owner has 90 days from date of loss to submit proof of loss to Insurer; valid claim must be paid immediately upon receipt.
Recurrent disability clause/provision
Indeterminate Premium Whole Life policy
Primary Insurance Amount (PIA)
Proof of Loss provision
27. War/Military; Intentional self-inflicted; Aviation (non-commercial); Foreign country; Loss of professional license; Illegal activity; Mental disorders (after 1-2 yrs.).
Approval Type Conditional receipt
Cost of Living Adjustment (COLA) Disability rider
Universal (aka Flexible Premium Adjustable) Life policy (4 of 4)
Common Disability Exclusions
28. Waives premium on Life policy for minor child until age 21 in event premium payor dies or becomes disabled.
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
29. Conditional - coverage is conditional; Personal - parties are people; Good faith - honesty/integrity; Fiduciary - req's financial trust.
Types of Medical Plans
Premium modes
Palliative vs. Curative care
Insurance contract characteristics (2 of 2)
30. Process whereby a reinsurer reinsures w/ another reinsurer.
Types of Accident & Health insurance
Tax implications of Death Benefit & Cash Value
Retrocession
Family Maintenance policy
31. 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.
Legal Action provision
Grace Period provision
Blue Cross/Blue Shield
AIDS/HIV discrimination
32. The state in which the contract is accepted or delivered is the state that possesses regulatory jurisdiction over Group plan.
Estoppel
Doctrine of Comity
Family policy
Accidental Death (aka Multiple Indemnity) rider
33. Privately-sold policies to provide benefits not covered by Medicare; divided into 12 plans listed alphabetically A - L; 30-day free look; guaranteed renewable.
Medicare Supplement or Medigap policy
Applicant Representations vs. Warranties
Health Reimbursement Account (HRA)
24 Hour Coverage (CA)
34. Life license + NASD (FINRA) Series 6 or 7.
Requirements to sell variable life products
Credit Life policy
Disability Income policy
Single Pay Whole Life policy
35. Insurer has right to adjust (+ or -) death benefit if age or sex is misstated but normally doesn't void policy.
Misstatement of Age/Sex provision
Proof of Loss provision
Partial disability rider
Free Look provision
36. Allows for use of HMO/PPO or other private carrier to provide expanded benefits @ additional premium & if enrolled in BOTH Parts A & B.
Annuity Classifications (4 of 5): Disposition "pay-out" of proceeds
Types of Licensed Producers
Medicare Part C (aka Medicare Advantage)
Time Limit on Certain Defenses provision
37. Accumulation or "pay-in" - contributions & interest earned are tax-deferred; Annuity or "pay-out" - monthly annuity (taxable) paid.
Phases of an annuity
Social Security (aka Old Age Survivors Disability Health Insurance or OASDHI)
Types of Insurers (by ownership)
Beneficiary provisions
38. 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.
Consolidated Omnibus Budget Reconciliation Act (COBRA)
Parole Pardon Rule
Enhanced Ordinary (aka Extraordinary) Whole Life policy
Proof of Loss provision
39. 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.
Types of Term Life policies
Non-forfeiture options for WL policy
Beneficiary provisions
Renewability provision
40. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.
Non-forfeiture options for WL policy
Tax implications of an Annuity (1 of 2)
Plans A-L of Medical Supplement or Medigap
Factors that determine premium
41. Unilateral - Insurer provides contract; Adhesion - parties must adhere to terms; Aleatory - benefits may not inure equally.
Juvenile Life (aka Jumping Juvenile) policy
Fraud
Insurance contract characteristics (1 of 2)
Proof of Loss provision
42. Privately-provided or Medicare-provided (if no private carrier) prescription drug plans for qualified individuals but w/ premium - deductible & co-pay.
Family Income policy
Enhanced Ordinary (aka Extraordinary) Whole Life policy
Types of Insurers (by ownership)
Medicare Part D
43. Peril is the CAUSE of loss. Hazard is a condition that increases LIKELIHOOD of loss.
Peril vs. Hazard
Dental Plan
Business Continuation (aka Buy-Sell) policy
Family Income policy
44. Tendency of poorer risks to seek insurance.
Claim Form (aka Proof of Loss Form) provision
Palliative vs. Curative care
Settlement options for Life policy (2 of 2)
Adverse selection
45. 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.
Rehabilitation rider
Medical cost containment (aka Managed care)
Tax implications of Disability policy
Retrocession
46. Allows policy owner to w/draw set % of death benefit upon verification of terminal illness w/ expectancy 12-24 mths.; generally tax-free.
Annuity Classifications (5 of 5): # of lives
Accelerated Benefits (aka Terminal Illness or Living Benefits) rider
Pure risk vs. Speculative risk
Medicare Part A & B "Gaps"
47. Receipt whereby coverage incepts conditionally upon submission of full consideration and that all underwriting reqs. are met.
Free Look provision
Primary Insurance Amount (PIA)
Health Insurance Portability and Accountability Act (HIPAA)
Insurability Type Conditional receipt
48. Provides benefit during Social Security "black-out" period - up to 1 yr.
Viatical Settlement Provider (VSP)
Time Limit on Certain Defenses provision
Social Security Benefit (Supplement) rider
Variable Life policy (1 of 2)
49. Refund of 50-80% of premium (minus claims paid) every 5-10 yrs. OR age 65; expensive!
Incontestability clause/provision
Flexible Spending Account (FSA)
Phases of an annuity
Return of Premium rider
50. Expands individual WL policy to include Term Life for dependents (spouse - children - etc.).
Supplemental Major Medical plan
Family or Dependents rider
Suicide clause/provision
Earned vs. Unearned premium