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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. Covers entire family w/ WL for breadwinner & (convertible) Level Term for spouse & children (until certain age).
Blue Cross/Blue Shield
Medicare Part C (aka Medicare Advantage)
Partial disability rider
Family policy
2. Prevents overinsuring in order to profit from disability by coordinating benefits between Insurers.
Market Value Adjusted (aka Modified Guaranteed) annuity
Relation of Earnings to Insurance provision
Insurance contract characteristics (2 of 2)
Graded Premium Whole Life policy
3. Period of time following any children's survivor benefit & before benefits are provided to employee's widow/widower.
Cost of Living Adjustment (COLA) Disability rider
Medicare Part C (aka Medicare Advantage)
Residual disability rider
Blackout Period
4. WL policy covering 2 or more Insureds but ONLY payable upon death of LAST Insured - generally low premium but high death benefit.
Loss exposure
Legal Action provision
Survivorship (aka "Last to die") policy
Waiver of Premium (Waiver of Cost of Insurance) rider
5. Hybrid of HMO & PPO w/ greater flexibility on choosing specialists outside network w/ benefits still provided but @ higher co-pay.
Insurability Type Conditional receipt
Point of Service plan
Supplemental Major Medical plan
Dependent coverage
6. Privately-provided or Medicare-provided (if no private carrier) prescription drug plans for qualified individuals but w/ premium - deductible & co-pay.
Medicare Part A (aka Hospital Insurance or HI)
Needs approach (most common)
Dread Disease policy
Medicare Part D
7. Specialized policy covering diagnostic & preventative dental care; often no deductible; co-insurance; expensive; may be included w/ medical plan.
Binding receipt (aka Temporary Insurance Agreement)
Multiple Employer Trust (MET) aka Multiple Employer Welfare Association (MEWA)
Equity Index Whole Life policy
Dental Plan
8. Application submitted w/out premium; no coverage until submission of full consideration & completed Statement of Continued Good Health.
Total disability (as commonly defined)
Medicare Supplement or Medigap policy
Trial Application (aka Request for Offer)
Medicaid/Medi-Cal
9. 4: Funds retained by Insurer until w/drawn - interest ONLY paid monthly (taxable); 5: Paid-up immediate annuity.
Endowment Life policy
Departments of an Insurer
Settlement options for Life policy (2 of 2)
Small Employer Medical Expense plan
10. Expands individual WL policy to include Term Life for dependents (spouse - children - etc.).
Family or Dependents rider
Needs approach (most common)
Misstatement of Age/Sex provision
Settlement options for Life policy (2 of 2)
11. 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.
Waiver of Premium provision
Payor (aka Waiver of Payor's Premium) rider
Modified Premium Whole Life policy
Small Employer Medical Expense plan
12. Experience - rates impacted by actual prior claim experience of actual group; Community - identical rates used for entire community - regardless of experience.
Experience vs. Community rating in Group Health plan
Exclusions to Work. Comp.
Cross Purchase Plan
CA Work. Comp. Statutes
13. Info already known; Info that should have been known; Waived info; Irrelevant info.
Family Maintenance policy
Penalties for violating AIDS/HIV privacy laws
Concealment exceptions
Long Term Care (LTC) policy
14. Must be delivered in person or by certified - registered or 1st-class mail w/ signature - unless waived by Insurance Commissioner.
Policy delivery
Tax implications of Death Benefit & Cash Value
IRS Penalties for Annuities
Business Continuation (aka Buy-Sell) Disability policy
15. Written contract that provides INCOME @ high interest rate for fixed period OR for annuitant's lifetime w/ possible death benefit.
Levels of Long Term Care provided
Enhanced Ordinary (aka Extraordinary) Whole Life policy
Family Maintenance policy
Annuity
16. Covers disabilities occurring ONLY "off" job; benefits do not overlap work. comp. (i.e. Group plan).
Variable Life policy (2 of 2)
Peril vs. Hazard
Non-Occupational Disability policy
Types of Insurers (by authorization)
17. Provides 24 hr. health coverage both "on" & "off" job - but may cause coverage duplication & coordination challenges.
Market Value Adjusted (aka Modified Guaranteed) annuity
Loss exposure
Grace Period provision
24 Hour Coverage (CA)
18. Pre-existing illness/injury; Waiting period; Elimination period; Probationary period; Benefits - Exclusions - Limitations; Underwriting reqs.
Beneficiary provisions
Guaranteed Insurability (aka Additional Purchase or Future Increase) Disability rider
Considerations in replacing Health insurance
Dividend options
19. Allows Insured to increase death benefit w/out medical exam (subject to age max.) w/ additional premium rate determined @ attained age.
Split Dollar Plan
Guaranteed Insurability Life rider
Tax implications of Disability policy
Peril vs. Hazard
20. Receipt whereby coverage incepts conditionally upon submission of full consideration and that all underwriting reqs. are met.
Medicare
Non-forfeiture options for WL policy
Medicare Part B (aka Supplemental Medical Insurance or SMI)
Insurability Type Conditional receipt
21. Responsible adult trustee designated to manage death benefits for minor child beneficiary until adulthood.
Trusts
Life insurance policy
Presumptive disability
Experience vs. Community rating in Group Health plan
22. Provides disability income during surgery recovery from life-threatening condition (& sometimes cosmetic surgery).
Transplant/Cosmetic Surgery rider
Exclusions for Major Medical plan
Market Value Adjusted (aka Modified Guaranteed) annuity
Reinsurance
23. Upon notice - Insurer must provide Claim Form (Proof of Loss Form) to Insured w/in 15 days.
1035 Exchange
Departments of an Insurer
Key Employee Disability policy
Claim Form (aka Proof of Loss Form) provision
24. Process which prevents claim denial as a result of false statement or promise (made by Insurer) - which was relied upon by Insured.
Legal Action provision
Parole Pardon Rule
Automatic Premium Loan (APL) provision
Estoppel
25. Prepaid med. benefits for members ONLY w/ approved primary care M.D. (HMO employee); focus on preventative care; low co-pay.
Health Maintenance Organization (HMO)
Blackout Period
Key Employee policy
Variable Universal Life policy
26. 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.
Primary Insurance Amount (PIA)
Employer Liability
AIDS/HIV discrimination
Types of Term Life policies
27. 1: mortality probability charge; 2: Insurer's investment return; 3: expenses (admin costs - commissions). 1 - 2 = net; 1 - 2 + 3 = gross.
Credit Life policy
Residual disability rider
Exclusions to Work. Comp.
Factors that determine premium
28. Multiple small employers w/ common affiliation (trade assoc. OR Chamber of Commerce) band together to purchase group plan.
Multiple Employer Trust (MET) aka Multiple Employer Welfare Association (MEWA)
Whole (aka Permanent or Straight) Life policy
Insurance contract characteristics (1 of 2)
Incontestability clause/provision
29. 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
Elements to contract
Payor (aka Waiver of Payor's Premium) rider
Cross Purchase Plan
30. 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.
Beneficiary provisions
Consolidated Omnibus Budget Reconciliation Act (COBRA)
Errors & Omissions (E&O)
Underwriting risk categories
31. Underwriting - determines insurability; Marketing/Sales - determines products; Actuarial - determines rates; Claims - investigates/pays claims.
Approval Type Conditional receipt
Applicant Representations vs. Warranties
Departments of an Insurer
Free Look provision
32. Privately-sold policies to provide benefits not covered by Medicare; divided into 12 plans listed alphabetically A - L; 30-day free look; guaranteed renewable.
Insurability Type Conditional receipt
Types of Term Life policies
Human Life Value approach
Medicare Supplement or Medigap policy
33. 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.
Equity Index Whole Life policy
Trial Application (aka Request for Offer)
Long Term Care (LTC) policy
Annuity Classifications (2 of 5): When benefits begin
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.
Civil Rights/Pregnancy Discrimination Act
Consolidated Omnibus Budget Reconciliation Act (COBRA)
Guaranteed Insurability (aka Additional Purchase or Future Increase) Disability rider
Business Overhead Expense (BOE) Disability policy
35. Federally-sponsored health care for individuals 65+ &/or w/ certain disabilities; may run concurrent w/ group plan but group plan would act primary - THEN Medicare.
Medicare
Long Term Care (LTC) policy
Conformity with State Statute provision
Health Insurance Portability and Accountability Act (HIPAA)
36. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.
Guaranteed Insurability (aka Additional Purchase or Future Increase) Disability rider
Types of Renewability provisions
Doctrine of Comity
Tax implications of an Annuity (1 of 2)
37. Insurer has right to rescind policy & return premium if material misrepresentation in application is found w/in 1st 2 yrs.
Free Look provision
Workers' Compensation insurance
Incontestability clause/provision
Settlement options for Life policy (2 of 2)
38. Life license + NASD (FINRA) Series 6 or 7.
Dividend options
Requirements to sell variable life products
Return of Premium rider
Endowment Life policy
39. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)
Whole (aka Permanent or Straight) Life policy
Multiple Employer Trust (MET) aka Multiple Employer Welfare Association (MEWA)
Common Accident provision
Annuity Classifications (1 of 5): How premium is paid
40. Pure risk involves chance of loss ONLY (accident or misfortune). Speculative risk involves chance of loss OR gain (gambling - stock investment).
Cross Purchase Plan
Pure risk vs. Speculative risk
Premium modes
Grace Period provision
41. An unintentional mistake committed by an insurance representative; may be covered by E&O insurance.
Errors & Omissions (E&O)
Entire Contract provision
Tax implications of an Annuity (1 of 2)
Return of Premium rider
42. Peril is the CAUSE of loss. Hazard is a condition that increases LIKELIHOOD of loss.
Peril vs. Hazard
Types of Insurers (by domicile)
Health Maintenance Organization (HMO)
Credit Life policy
43. Term Life policy w/ decreasing death benefit; usually used to secure credit (loan) w/ lender as beneficiary & borrower as Insured.
Types of Licensed Producers
Credit Life policy
Insurable interest
Current Assumption (aka Interest-Sensitive) Whole Life policy
44. A&H - A&S - Sickness only; Medical; Disability; Accident only; Travel accident; LTC; Medicare supplement; AD&D; Dental/Vision/Prescription; Limited.
Types of Accident & Health insurance
Employee Retirement Income Security Act (ERISA)
Small Employer Medical Expense plan
Consolidated Omnibus Budget Reconciliation Act (COBRA)
45. If Insured changes to: more hazardous job - benefits reduced; less hazardous job - premiums reduce.
Rate (as defined by CIC)
Experience vs. Community rating in Group Health plan
Annuity surrender charges
Change of Occupation provision
46. Receipt whereby coverage incepts immediately upon submission of full consideration - unless declined & premium refunded.
Accidental Death (aka Multiple Indemnity) rider
Insurance contract characteristics (1 of 2)
Binding receipt (aka Temporary Insurance Agreement)
Universal (aka Flexible Premium Adjustable) Life policy (2 of 4)
47. Death benefit determined by Insured's projected lost earnings potential.
Reinstatement provision
Types of Accident & Health insurance
Human Life Value approach
Dividend options
48. Policy owner must notify Insurer of loss either in writing - in person or by phone w/in 20 days.
Notice of Claim provision
Settlement options for Life policy (2 of 2)
Group Disability plan
Annuity Classifications (2 of 5): When benefits begin
49. Pays death benefit until age 100 or death; builds equity (cash value); may be transferred or sold; generally level premium.
Whole (aka Permanent or Straight) Life policy
Adverse selection
Reinstatement provision
Viatical Settlement Provider (VSP)
50. 1: Straight aka Pure Life - lifetime income but no survivorship refund; 2: Life w/ Period Certain - lifetime income w/ death benefit of monthly annuity for remaining predetermined term. 3: Annuity Certain - monthly income paid for predetermined term
Family or Dependents rider
Family policy
Annuity Classifications (4 of 5): Disposition "pay-out" of proceeds
Notice of Claim provision