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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. War; elective cosmetic surgery; routine dental; work. comp.-covered claims; self-inflicted (intentional); gov't. facility treatment; LTC; private nursing.
Types of Licensed Producers
Exclusions for Major Medical plan
Dental Plan
Accidental Death & Dismemberment (AD&D) Disability rider
2. Excludes coverage for specific injury/illness either temporarily or permanently in order to eliminate pre-existing condition.
Dread Disease policy
Impairment (Exclusion) rider
Family Maintenance policy
Tax implications of medical plans
3. 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
Proof of Loss provision
Types of Insurers (by authorization)
Types of Term Life policies
4. Policy owner has 90 days from date of loss to submit proof of loss to Insurer; valid claim must be paid immediately upon receipt.
Cost of Living Adjustment (COLA) Disability rider
Proof of Loss provision
Accelerated Benefits (aka Terminal Illness or Living Benefits) rider
Common Accident provision
5. Revocable - changeable anytime w/ Change of Beneficiary Form; Irrevocable - not changeable w/out beneficiary permission.
Revocable vs. Irrevocable beneficiary
Small Employer Medical Expense plan
Premium modes
Annuity Classifications (1 of 5): How premium is paid
6. War/Military; Intentional self-inflicted; Aviation (non-commercial); Foreign country; Loss of professional license; Illegal activity; Mental disorders (after 1-2 yrs.).
Medical Savings Account (MSA) & Health Savings Account (HSA)
Annuity Classifications (3 of 5): Source of income
Common Disability Exclusions
Cross Purchase Plan
7. Potential circumstance that could cause a loss; measured in dollars.
Loss exposure
Long Term Care (LTC) policy
Retrocession
Partial disability rider
8. 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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9. No-cost provision that authorizes Insurer to borrow from cash value to pay unpaid premiums after grace period; must ask for @ app. time.
Automatic Premium Loan (APL) provision
Tax implications of an Annuity (1 of 2)
Enhanced Ordinary (aka Extraordinary) Whole Life policy
Common Life Exclusions
10. Mathematical calculation based on overall FICA contributions used to determine retirement/disability/survivorship benefit.
CHAMPUS (aka TriCare)
Primary Insurance Amount (PIA)
Business Continuation (aka Buy-Sell) policy
Dividends
11. Group plan initially self-funded by employer (like SIR); after which - group plan Insurer covers (up to policy limit); requires TPA.
Renewability provision
Whole (aka Permanent or Straight) Life policy
Automatic Premium Loan (APL) provision
Employer-Administered plan
12. Same as Comprehensive Major Medical but w/ integrated deductible; much more expensive.
Elimination (aka Waiting) period
Supplemental Major Medical plan
Trial Application (aka Request for Offer)
Dependent coverage
13. Same as WL but death benefit decreases each yr. w/ dividends paid annually to offset decrease.
Medicare Part A & B "Gaps"
Presumptive disability
Enhanced Ordinary (aka Extraordinary) Whole Life policy
Return of Cash Value rider
14. Fixed premium w/ guaranteed min. death benefit that may increase due to higher than expected investment returns.
Medicare
Return of Cash Value rider
Annuity
Variable Life policy (2 of 2)
15. Dependent children are covered until 19 or 23 (full-time student only) or until self-sufficient (if handicapped).
Return of Premium rider
Insurer (as defined by CIC)
Reinsurance
Dependent coverage
16. 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.
Approval Type Conditional receipt
Tax implications of an Annuity (1 of 2)
Conformity with State Statute provision
Medicare
17. Hybrid of HMO & PPO w/ greater flexibility on choosing specialists outside network w/ benefits still provided but @ higher co-pay.
Levels of Long Term Care provided
Rehabilitation rider
Medi-Cal Share Cost plan
Point of Service plan
18. Provides coverage for specific disease(s) - such as cancer or leukemia.
Annuity Classifications (3 of 5): Source of income
Dread Disease policy
Payment of Premium provision
COBRA Time Limitations
19. Business continuation funding plan whereby each partner agrees to buy Life policies on each other - but not themselves.
1035 Exchange
Cross Purchase Plan
Graded Premium Whole Life policy
Occupational Disability policy
20. No deductible coverage for: daily room/board; ancillary costs; surgeon &/or physician expense (for added premium).
Total disability (as commonly defined)
Basic Medical plan
Annuity Classifications (1 of 5): How premium is paid
Elimination (aka Waiting) period
21. Provides 24 hr. health coverage both "on" & "off" job - but may cause coverage duplication & coordination challenges.
Non-Occupational Disability policy
Valid life insurance contracts must identify...
24 Hour Coverage (CA)
Errors & Omissions (E&O)
22. Tendency of poorer risks to seek insurance.
Entire Contract provision
Adverse selection
Requirements to sell variable life products
Non-forfeiture options for WL policy
23. Two death benefit options - Option A: death benefit ONLY; Option B: death benefit + cash value; death benefit NOT guaranteed.
Recurrent disability clause/provision
Universal (aka Flexible Premium Adjustable) Life policy (4 of 4)
Cost of Living Adjustment (COLA) Disability rider
Human Life Value approach
24. Federally-funded but state-run program for truly indigent individuals & families providing medical care at Federal clinic.
Automatic Premium Loan (APL) provision
Equity Index Whole Life policy
Life insurance policy
Medicaid/Medi-Cal
25. If total premiums paid w/in 1st 7 yrs. exceed net level premium that should have been paid - policy is an MEC.
Social Security Benefit (Supplement) rider
Split Dollar Plan
Cost of Living Adjustment (COLA) Life rider
7 Pay Test
26. To "make whole again" w/out benefit or detriment; neither monetary profit nor loss.
Indemnify
24 Hour Coverage (CA)
Major Medical plan
Concealment exceptions
27. Receipt whereby coverage incepts ONLY after underwriting approval.
Group Disability plan
Considerations in replacing Health insurance
Approval Type Conditional receipt
Mortality vs. Morbidity tables
28. Same as WL but premium low for set # yrs. - THEN premiums vary (+ or -) based on Insurer's investment returns - w/ Gmax.
Peril vs. Hazard
Change of Occupation provision
Indeterminate Premium Whole Life policy
Settlement options for Life policy (2 of 2)
29. Representation - oral or written statement made to best of knowledge or belief; Warranty - statement guaranteed/presumed/understood to be true.
Rate (as defined by CIC)
Revocable vs. Irrevocable beneficiary
Applicant Representations vs. Warranties
Annuity surrender charges
30. Peril is the CAUSE of loss. Hazard is a condition that increases LIKELIHOOD of loss.
Civil Rights/Pregnancy Discrimination Act
Medical cost containment (aka Managed care)
Annuity Classifications (2 of 5): When benefits begin
Peril vs. Hazard
31. Death benefit is NOT taxable. Cash value grows tax-deferred but cost basis (base premium) is not taxable - only interest is.
Employer-Administered plan
Tax implications of Death Benefit & Cash Value
IRS Penalties for Annuities
Rescission
32. Time extension of benefits based on "qualifying" event. 18 mth. extension if laid off or fired; 36 mth. extension if death - divorce or child leaves home.
COBRA Time Limitations
Single Pay Whole Life policy
Approval Type Conditional receipt
Equity Index Whole Life policy
33. 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;
Social Security (aka Old Age Survivors Disability Health Insurance or OASDHI)
Concealment
Annuity Classifications (5 of 5): # of lives
Presumptive disability
34. Taxable income (unlike individual plans); can be either short-term - 13-52 wks. max. or long-term - longer than 52 wks.
Departments of an Insurer
Convertibility provision
Group Disability plan
Applicant Representations vs. Warranties
35. The state in which the contract is accepted or delivered is the state that possesses regulatory jurisdiction over Group plan.
Indeterminate Premium Whole Life policy
Doctrine of Comity
Graded Premium Whole Life policy
Settlement options for Life policy (2 of 2)
36. Receipt whereby coverage incepts immediately upon submission of full consideration - unless declined & premium refunded.
Cross Purchase Plan
Key Employee policy
Reinstatement provision
Binding receipt (aka Temporary Insurance Agreement)
37. Price of insurance per exposure unit.
Waiver of Premium (Waiver of Cost of Insurance) rider
Notice of Claim provision
Rate (as defined by CIC)
Universal (aka Flexible Premium Adjustable) Life policy (3 of 4)
38. Authorized (admitted) - can conduct business in state; Unauthorized (non-admitted) - cannot conduct business in state (w/ one exception).
Earned vs. Unearned premium
Types of Insurers (by authorization)
Revocable vs. Irrevocable beneficiary
Dental Plan
39. Federal law to protect Federal employees' (& their beneficiaries') pension - group insurance - & welfare benefits.
Single Pay Whole Life policy
Free Look provision
Employee Retirement Income Security Act (ERISA)
Waiver of Premium (Waiver of Cost of Insurance) rider
40. Federal law which prohibits companies w/ 15+ employees from decreasing coverage benefits for women affected by pregnancy or childbirth.
Cash value
Common Accident provision
Total disability (more restrictive definition)
Civil Rights/Pregnancy Discrimination Act
41. Policy owner must notify Insurer of loss either in writing - in person or by phone w/in 20 days.
Time Limit on Certain Defenses provision
Types of hazards
Notice of Claim provision
Claim Form (aka Proof of Loss Form) provision
42. Death benefit determined by Insured's financial goals & needs (minus assets).
Insurance contract characteristics (1 of 2)
Health Reimbursement Account (HRA)
Cross Purchase Plan
Needs approach (most common)
43. 'The inability to perform your OWN normal occupation or daily duties'.
Total disability (as commonly defined)
Long Term Care (LTC) policy
Types of Accident & Health (A&H) providers
Medicare
44. Savings account for medical expenses; Tax-deductible contributions; tax-deferred growth; tax-free for qualified use; taxable for non-qualified use.
Health Reimbursement Account (HRA)
Types of Accident & Health insurance
Medical Savings Account (MSA) & Health Savings Account (HSA)
Tax implications of an Annuity (1 of 2)
45. If 2 or more family members are injured in the same accident - only payment of a single deductible is required.
Human Life Value approach
Family Maintenance policy
Common Accident provision
Health Maintenance Organization (HMO)
46. Privately-provided or Medicare-provided (if no private carrier) prescription drug plans for qualified individuals but w/ premium - deductible & co-pay.
Family policy
Non-forfeiture options for WL policy
Long Term Care (LTC) policy
Medicare Part D
47. Benefits NOT taxable; employer-paid premiums deductible to employer; individual plans not deductible unless over 7 1/2% of adjusted gross income - then excess deductible.
Life insurance policy
Tax implications of medical plans
Social Security (aka Old Age Survivors Disability Health Insurance or OASDHI)
Universal (aka Flexible Premium Adjustable) Life policy (3 of 4)
48. Unilateral - Insurer provides contract; Adhesion - parties must adhere to terms; Aleatory - benefits may not inure equally.
Insurance contract characteristics (1 of 2)
Payor (aka Waiver of Payor's Premium) rider
Cost of Living Adjustment (COLA) Disability rider
Loss of Earnings Test
49. 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
Loss of Earnings Test
Loss exposure
Transplant/Cosmetic Surgery rider
50. Provides supplemental coverage for physician/surgeon fees if enrolled (during enrollment period ONLY) & pay monthly premium w/ deductible and co-insurance.
Renewability provision
Medicare Part B (aka Supplemental Medical Insurance or SMI)
Survivorship (aka "Last to die") policy
Disability Income policy