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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).
COBRA Time Limitations
Major Medical plan
Annuity
Family policy
2. Preferred or Preferred Smoker; Standard or Standard Smoker; Substandard; Denied.
Family or Dependents rider
Binding receipt (aka Temporary Insurance Agreement)
Considerations in replacing Health insurance
Underwriting risk categories
3. Excludes coverage for specific injury/illness either temporarily or permanently in order to eliminate pre-existing condition.
Supplemental Major Medical plan
Loss exposure
Dividend options
Impairment (Exclusion) rider
4. Written policy terms supersede oral statements made prior to policy issue.
Variable Life policy (2 of 2)
Non-Occupational Disability policy
Parole Pardon Rule
Small Employer Medical Expense plan
5. Federal law which prohibits companies w/ 15+ employees from decreasing coverage benefits for women affected by pregnancy or childbirth.
Concealment
Employee Retirement Income Security Act (ERISA)
Insurer (as defined by CIC)
Civil Rights/Pregnancy Discrimination Act
6. Upon notice - Insurer must provide Claim Form (Proof of Loss Form) to Insured w/in 15 days.
Claim Form (aka Proof of Loss Form) provision
Impairment (Exclusion) rider
Long Term Care (LTC) policy
Graded Premium Whole Life policy
7. Unintentional - up to $1 -000 + legal $; Intentional - $1 -000-5 -000 + legal $; If harmful - misdemeanor + up to 1 yr. prison + up to $10 -000.
Annuity Classifications (4 of 5): Disposition "pay-out" of proceeds
Penalties for violating AIDS/HIV privacy laws
Supplemental Major Medical plan
COBRA Time Limitations
8. Policy must be delivered w/ original (or copy of same) application attached.
Survivorship (aka "Last to die") policy
Entire Contract provision
Estoppel
Term Life policy
9. Agents - represent Insurer; Brokers - represent themselves & Insured; Solicitors - represent one agent to solicit leads.
Types of Licensed Producers
Indeterminate Premium Whole Life policy
Annuity
Employer Liability
10. WL policy covering 2 or more Insureds but payable upon death of FIRST Insured - after which policy ends.
Joint Life (aka "First to die") policy
Return of Premium rider
Misstatement of Age/Sex provision
Reinsurance
11. Same as WL but premium low for 1st 3-5 yrs. - THEN has one-time premium increase.
Family policy
Grace Period provision
Current Assumption (aka Interest-Sensitive) Whole Life policy
Modified Premium Whole Life policy
12. Info already known; Info that should have been known; Waived info; Irrelevant info.
Health Insurance Portability and Accountability Act (HIPAA)
Occupational Disability policy
Concealment exceptions
Payor (aka Waiver of Payor's Premium) rider
13. 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.
Human Life Value approach
Medicare
Types of Insurers (by authorization)
Revocable vs. Irrevocable beneficiary
14. Potential circumstance that could cause a loss; measured in dollars.
Civil Rights/Pregnancy Discrimination Act
Loss exposure
Blackout Period
Indemnify
15. 'The inability to perform ANY reasonable occupation based on education - training or experience'.
Market Value Adjusted (aka Modified Guaranteed) annuity
Notice of Claim provision
Incontestability clause/provision
Total disability (more restrictive definition)
16. Permanent - not recoverable (spinal cord injury); Temporary - recoverable (temp. illness/injury - broken limb).
Dividend options
Employer Liability
Permanent vs. Temporary disability
Settlement options for Life policy (1 of 2)
17. Reappearance of disability w/in 6 mth. period after "recovery" from same disability is considered recurrence - not new disability.
Workers' Compensation insurance
Return of Premium rider
Civil Rights/Pregnancy Discrimination Act
Recurrent disability clause/provision
18. PURELY employer-funded account to reimburse employees for qualified medical expenses not covered by group health plan.
Reinsurance
Employer Liability
Health Reimbursement Account (HRA)
Modified Endowment Contract (MEC)
19. Group plan initially self-funded by employer (like SIR); after which - group plan Insurer covers (up to policy limit); requires TPA.
Employer-Administered plan
Medicare
Modified Premium Whole Life policy
Permanent vs. Temporary disability
20. Identical to Incontestable Clause in Life policy.
Single Pay Whole Life policy
CA Work. Comp. Statutes
Time Limit on Certain Defenses provision
Long Term Care (LTC) policy
21. Insurer has right to adjust (+ or -) death benefit if age or sex is misstated but normally doesn't void policy.
Permanent vs. Temporary disability
Annuity Classifications (4 of 5): Disposition "pay-out" of proceeds
Proof of Loss provision
Misstatement of Age/Sex provision
22. To "make whole again" w/out benefit or detriment; neither monetary profit nor loss.
Medicare Part D
Social Security Benefit (Supplement) rider
Types of Renewability provisions
Indemnify
23. 1: mortality probability charge; 2: Insurer's investment return; 3: expenses (admin costs - commissions). 1 - 2 = net; 1 - 2 + 3 = gross.
Errors & Omissions (E&O)
Factors that determine premium
Loss exposure
Elements to contract
24. Provides usual & customary business expenses (rent - utilities - salaries - mortgage) if owner becomes disabled; premiums deductible - benefits taxable.
Business Overhead Expense (BOE) Disability policy
Medicaid/Medi-Cal
Payment of Premium provision
COBRA Time Limitations
25. War - 2 types; Suicide (1st 2 yrs.); Aviation (non-commercial); Hazardous hobbies; Criminal acts; Alcohol/Drug influenced.
Spendthrift provision
Time Limit on Certain Defenses provision
Common Life Exclusions
Types of hazards
26. Federally-funded but state-run program for truly indigent individuals & families providing medical care at Federal clinic.
Types of Medical Plans
Medicaid/Medi-Cal
Loss of Earnings Test
Variable Life policy (2 of 2)
27. Annuity distributions prior to age 59 1/2 incur a 10% IRS penalty EXCEPT for death - disability - immediate annuity - or rollover.
Approval Type Conditional receipt
Reinsurance
IRS Penalties for Annuities
Insurance contract characteristics (1 of 2)
28. Provides supplemental coverage for physician/surgeon fees if enrolled (during enrollment period ONLY) & pay monthly premium w/ deductible and co-insurance.
Annuity Classifications (1 of 5): How premium is paid
7 Pay Test
Transplant/Cosmetic Surgery rider
Medicare Part B (aka Supplemental Medical Insurance or SMI)
29. Prevents overinsuring in order to profit from disability by coordinating benefits between Insurers.
Entire Contract provision
Types of Insurers (by ownership)
Relation of Earnings to Insurance provision
Medicare Part A & B "Gaps"
30. Revocable - changeable anytime w/ Change of Beneficiary Form; Irrevocable - not changeable w/out beneficiary permission.
Suicide clause/provision
Automatic Premium Loan (APL) provision
Health Insurance Portability and Accountability Act (HIPAA)
Revocable vs. Irrevocable beneficiary
31. Palliative - treatment to manage pain; Curative - treatment to cure illness/condition.
Annuity surrender charges
Palliative vs. Curative care
Social Security Benefit (Supplement) rider
Disability Income policy
32. Allows Insured to increase benefit w/out medical exam (subject to age max.) w/ additional premium rate determined @ attained age; must prove income increase.
Loss of Earnings Test
Guaranteed Insurability (aka Additional Purchase or Future Increase) Disability rider
Residual disability rider
Exclusions for Major Medical plan
33. Same as WL but cash value increases @ current interest rates (not set); premium can start low or high & may change.
Workers' Compensation insurance
Phases of an annuity
Current Assumption (aka Interest-Sensitive) Whole Life policy
Incontestability clause/provision
34. Experience - rates impacted by actual prior claim experience of actual group; Community - identical rates used for entire community - regardless of experience.
Consolidated Omnibus Budget Reconciliation Act (COBRA)
Notice of Claim provision
Experience vs. Community rating in Group Health plan
Premium modes
35. 1: Individual; 2: Joint - multiple annuitants paid until 1st dies; 3: Joint & Survivor - multiple annuitants paid until 1st dies THEN survivors paid but @ reduced $.
Cross Purchase Plan
Social Security (aka Old Age Survivors Disability Health Insurance or OASDHI)
Annuity Classifications (5 of 5): # of lives
Plans A-L of Medical Supplement or Medigap
36. 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.
Tax implications of an Estate
Business Continuation (aka Buy-Sell) Disability policy
Blue Cross/Blue Shield
Consolidated Omnibus Budget Reconciliation Act (COBRA)
37. Same as WL but premium low for set # yrs. - THEN premiums vary (+ or -) based on Insurer's investment returns - w/ Gmax.
Indeterminate Premium Whole Life policy
Payor (aka Waiver of Payor's Premium) rider
Doctrine of Comity
Medi-Cal Share Cost plan
38. Voiding an insurance contract based on fraud - concealment or material misrepresentation; premiums returned; policy treated as never existing.
Return of Premium rider
Rescission
Reinstatement provision
Plans A-L of Medical Supplement or Medigap
39. Death benefits & premium automatically increase annually based on inflationary index (i.e. Consumer Price Index).
Types of Accident & Health (A&H) providers
Graded Premium Whole Life policy
Equity Indexed annuity
Cost of Living Adjustment (COLA) Life rider
40. Extreme form of Limited Pay Whole Life whereby entire premium is paid in a single payment.
Incontestability clause/provision
Disability Income policy
Dependent coverage
Single Pay Whole Life policy
41. WL policy covering 2 or more Insureds but ONLY payable upon death of LAST Insured - generally low premium but high death benefit.
Survivorship (aka "Last to die") policy
Renewability provision
Insuring clause/provision (aka Insuring Agreement)
Cash value
42. Conditional - coverage is conditional; Personal - parties are people; Good faith - honesty/integrity; Fiduciary - req's financial trust.
Dividend options
Insurance contract characteristics (2 of 2)
Insurability Type Conditional receipt
Premium modes
43. Privately-sold policies to provide benefits not covered by Medicare; divided into 12 plans listed alphabetically A - L; 30-day free look; guaranteed renewable.
Tax implications of medical plans
Payment of Premium provision
Medicare Supplement or Medigap policy
Requirements to sell variable life products
44. Mandatory 100% employer-funded coverage for injuries/illnesses occurring "on" job; full-time employees only; exclusive remedy. Provides: 1: unlimited medical benefit; 2: survivor income replacement & funeral ($5 -000 max.); 3: disability benefit @ 66
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45. Same as Comprehensive Major Medical but w/ integrated deductible; much more expensive.
Time Limit on Certain Defenses provision
Medicare
Modified Premium Whole Life policy
Supplemental Major Medical plan
46. Time period preceding each disability during which benefits are not paid; longer elimination periods = cheaper premium.
Annuity Classifications (1 of 5): How premium is paid
Transplant/Cosmetic Surgery rider
Multiple Employer Trust (MET) aka Multiple Employer Welfare Association (MEWA)
Elimination (aka Waiting) period
47. If total premiums paid w/in 1st 7 yrs. exceed net level premium that should have been paid - policy is an MEC.
Trusts
Equity Index Whole Life policy
7 Pay Test
Health Maintenance Organization (HMO)
48. An attempt to contain costs by employing various strategies - including wellness programs - preventative testing - outpatient & alternative procedures.
Revocable vs. Irrevocable beneficiary
7 Pay Test
Medical cost containment (aka Managed care)
Indeterminate Premium Whole Life policy
49. Basic Medical; Major Medical; Comprehensive Major Medical
Experience vs. Community rating in Group Health plan
Types of Renewability provisions
Equity Indexed annuity
Types of Medical Plans
50. 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.
Whole (aka Permanent or Straight) Life policy
Needs approach (most common)
Family or Dependents rider
Consolidated Omnibus Budget Reconciliation Act (COBRA)