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. Part A - Inpatient hospital deductibles vary on # of days; limited reserve days; finite benefit; 1st 3 pints blood; Part B - 20% co-payment.
Common Life Exclusions
Medicare Part A & B "Gaps"
Point of Service plan
Non-Occupational Disability policy
2. Any person - assoc. - org. - partnership - business trust - LLC - or corp. capable of making an insurance contract.
Policy loans
Civil Rights/Pregnancy Discrimination Act
Considerations in replacing Health insurance
Insurer (as defined by CIC)
3. Prepaid med. benefits for "subscribers" @ approved facilities; many non-profit; Blue Cross - Hospital stays; Blue Shield - M.D. costs.
Blue Cross/Blue Shield
Medi-Cal Share Cost plan
Waiver of Premium (Waiver of Cost of Insurance) rider
Considerations in replacing Health insurance
4. 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.
Tax implications of Disability policy
Workers' Compensation insurance
Presumptive disability
Market Value Adjusted (aka Modified Guaranteed) annuity
5. Receipt whereby coverage incepts ONLY after underwriting approval.
AIDS/HIV discrimination
Insurable interest
Errors & Omissions (E&O)
Approval Type Conditional receipt
6. Process which prevents claim denial as a result of false statement or promise (made by Insurer) - which was relied upon by Insured.
Spendthrift provision
Family Maintenance policy
Insurable interest
Estoppel
7. Term Life policy w/ decreasing death benefit; usually used to secure credit (loan) w/ lender as beneficiary & borrower as Insured.
Multiple Employer Trust (MET) aka Multiple Employer Welfare Association (MEWA)
Medicare
Credit Life policy
Non-Occupational Disability policy
8. Upon death - death benefit is paid + the aggregate of cash value accumulated to date; add-on to WL policy ONLY.
Return of Cash Value rider
Cross Purchase Plan
Viatical Settlement Provider (VSP)
Levels of Long Term Care provided
9. No-charge annuity w/drawals allowed up to 10% of total - THEN penalized on sliding scale based on # policy yrs.; conditionally waived.
Types of Licensed Producers
Credit Life policy
Concealment
Annuity surrender charges
10. Process whereby a reinsurer reinsures w/ another reinsurer.
Retrocession
Medicare
Settlement options for Life policy (1 of 2)
Employee Retirement Income Security Act (ERISA)
11. Policy owner has 90 days from date of loss to submit proof of loss to Insurer; valid claim must be paid immediately upon receipt.
Proof of Loss provision
Policy delivery
Graded Premium Whole Life policy
Spendthrift provision
12. Hybrid of HMO & PPO w/ greater flexibility on choosing specialists outside network w/ benefits still provided but @ higher co-pay.
Law of Large Numbers
Convertibility provision
Social Security Benefit (Supplement) rider
Point of Service plan
13. Experience - rates impacted by actual prior claim experience of actual group; Community - identical rates used for entire community - regardless of experience.
Life insurance policy
Experience vs. Community rating in Group Health plan
Annuity Classifications (4 of 5): Disposition "pay-out" of proceeds
Approval Type Conditional receipt
14. Multiple small employers w/ common affiliation (trade assoc. OR Chamber of Commerce) band together to purchase group plan.
Annuity Classifications (1 of 5): How premium is paid
Guaranteed Insurability (aka Additional Purchase or Future Increase) Disability rider
Multiple Employer Trust (MET) aka Multiple Employer Welfare Association (MEWA)
Dental Plan
15. Same as WL but death benefit increases annually - linked to Consumer Price Index; premium increases annually OR is set high from start.
Accidental Death (aka Multiple Indemnity) rider
Equity Index Whole Life policy
Employer Liability
Waiver of Premium provision
16. An irrevocable IRS classification of a policy (determined by the 7 Pay Test) whereby tax advantages are lost for all distributions ONLY.
Modified Endowment Contract (MEC)
Key Employee Disability policy
Reinstatement provision
Common Accident provision
17. Mortality is the statistical possibility of death @ each age. Morbidity is the statistical possibility & extent of disability @ each age.
Payment of Premium provision
Policy loans
CHAMPUS (aka TriCare)
Mortality vs. Morbidity tables
18. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.
Social Security Benefit (Supplement) rider
Survivorship (aka "Last to die") policy
Tax implications of an Estate
Settlement options for Life policy (1 of 2)
19. Potential circumstance that could cause a loss; measured in dollars.
Business Overhead Expense (BOE) Disability policy
Split Dollar Plan
Loss exposure
Common Life Exclusions
20. Same as WL but premium low for 1st 5 yrs. - THEN has annual premium increases for set # yrs. - THEN level premium.
Conformity with State Statute provision
Residual disability rider
Disability Income policy
Graded Premium Whole Life policy
21. Conditional - coverage is conditional; Personal - parties are people; Good faith - honesty/integrity; Fiduciary - req's financial trust.
Settlement options for Life policy (2 of 2)
Types of Renewability provisions
Spendthrift provision
Insurance contract characteristics (2 of 2)
22. 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
Key Employee Disability policy
Medicare
Medicare Part C (aka Medicare Advantage)
23. Policy covering minor child; premium fixed but death benefit increases by 5 times @ age 18 or 21.
Social Security Benefit (Supplement) rider
Misstatement of Age/Sex provision
Claim Form (aka Proof of Loss Form) provision
Juvenile Life (aka Jumping Juvenile) policy
24. War/Military; Intentional self-inflicted; Aviation (non-commercial); Foreign country; Loss of professional license; Illegal activity; Mental disorders (after 1-2 yrs.).
Experience vs. Community rating in Group Health plan
Types of Medical Plans
Reinstatement provision
Common Disability Exclusions
25. Treating or mitigating loss exposures through 1: avoidance; 2: retention (deductibles); 3: sharing; 4: reduction; or 5: transfer.
Risk management
Law of Large Numbers
Multiple Employer Trust (MET) aka Multiple Employer Welfare Association (MEWA)
Retrocession
26. Same as WL but death benefit decreases each yr. w/ dividends paid annually to offset decrease.
Enhanced Ordinary (aka Extraordinary) Whole Life policy
Term Life policy
Variable Universal Life policy
Supplemental Major Medical plan
27. 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.
Rescission
Palliative vs. Curative care
Long Term Care (LTC) policy
Loss exposure
28. Domestic - within home state; Foreign - outside home state; Alien - outside home country.
COBRA Time Limitations
Parole Pardon Rule
AIDS/HIV discrimination
Types of Insurers (by domicile)
29. Death benefit determined by Insured's projected lost earnings potential.
Loss exposure
Human Life Value approach
Waiver of Premium (Waiver of Cost of Insurance) rider
Current Assumption (aka Interest-Sensitive) Whole Life policy
30. 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)
Trusts
Settlement options for Life policy (1 of 2)
Exclusions for Major Medical plan
31. 'The inability to perform your OWN normal occupation or daily duties'.
Total disability (as commonly defined)
Single Pay Whole Life policy
Medical Savings Account (MSA) & Health Savings Account (HSA)
Insurable interest
32. Employer w/ 25 or less employees must offer all eligible employees @ least 2 medical plan options where pre-existing conditions can't be excluded more than 1 yr.
Medicare
Relation of Earnings to Insurance provision
Small Employer Medical Expense plan
Loss of Earnings Test
33. Tendency of poorer risks to seek insurance.
Medicare Part D
Departments of an Insurer
Adverse selection
Exclusions to Work. Comp.
34. Provides increased death benefit if death occurs w/in 90 days & as result of accident; relatively INexpensive add-on.
Incontestability clause/provision
Accidental Death (aka Multiple Indemnity) rider
Dependent coverage
Applicant Representations vs. Warranties
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
Life insurance policy
Needs approach (most common)
Insurer (as defined by CIC)
36. After 2-3 yrs. - Whole Life policy equity builds tax-deferred @ fixed interest rate until it equals death benefit; borrowable but taxable.
Types of Insurers (by ownership)
Elements to contract
Cash value
Errors & Omissions (E&O)
37. Federal law to protect Federal employees' (& their beneficiaries') pension - group insurance - & welfare benefits.
Employee Retirement Income Security Act (ERISA)
Annuity Classifications (3 of 5): Source of income
Applicant Representations vs. Warranties
Medicare Part B (aka Supplemental Medical Insurance or SMI)
38. Actual/Expressed - written powers; Implied - unwritten but customary practices; Apparent - perceived powers.
Types of Agency Authority
Guaranteed Insurability Life rider
Types of Medical Plans
Long Term Care (LTC) policy
39. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.
Cost of Living Adjustment (COLA) Life rider
Non-forfeiture options for WL policy
Presumptive disability
Spendthrift provision
40. Allows for use of HMO/PPO or other private carrier to provide expanded benefits @ additional premium & if enrolled in BOTH Parts A & B.
Family or Dependents rider
Retrocession
Health Maintenance Organization (HMO)
Medicare Part C (aka Medicare Advantage)
41. Provides professional services - rehabilitation - training/re-training & related costs to assist Insured in returning to work.
Pure risk vs. Speculative risk
Point of Service plan
Indeterminate Premium Whole Life policy
Rehabilitation rider
42. Unilateral - Insurer provides contract; Adhesion - parties must adhere to terms; Aleatory - benefits may not inure equally.
Types of Renewability provisions
Parole Pardon Rule
Insurance contract characteristics (1 of 2)
Dread Disease policy
43. Available for any reason up to full cash value @ fixed (max 8%) OR variable interest rate; loan $ + interest deducted from benefit @ death.
Non-Occupational Disability policy
Estoppel
Types of Insurers (by authorization)
Policy loans
44. Accumulation or "pay-in" - contributions & interest earned are tax-deferred; Annuity or "pay-out" - monthly annuity (taxable) paid.
Phases of an annuity
Universal (aka Flexible Premium Adjustable) Life policy (2 of 4)
Loss exposure
Payment of Premium provision
45. Specialized policy covering diagnostic & preventative dental care; often no deductible; co-insurance; expensive; may be included w/ medical plan.
Types of Insurers (by ownership)
Types of Medical Plans
Pure risk vs. Speculative risk
Dental Plan
46. Mathematical law stating the larger # of occurrences - the more predictable the losses; used to calculate premiums.
Medicare Part A & B "Gaps"
Premium modes
Law of Large Numbers
Risk management
47. Same as WL but cash value increases @ current interest rates (not set); premium can start low or high & may change.
Long Term Care (LTC) policy
Cash value
Current Assumption (aka Interest-Sensitive) Whole Life policy
Civil Rights/Pregnancy Discrimination Act
48. Death benefit determined by Insured's financial goals & needs (minus assets).
Needs approach (most common)
Claim Form (aka Proof of Loss Form) provision
Insuring clause/provision (aka Insuring Agreement)
Pure risk vs. Speculative risk
49. Prepaid med. benefits for members ONLY w/ approved primary care M.D. (HMO employee); focus on preventative care; low co-pay.
Flexible Spending Account (FSA)
Health Maintenance Organization (HMO)
Types of Accident & Health (A&H) providers
Insurer (as defined by CIC)
50. Insurance purchased by other Insurer(s) to spread or diversify risk; promotes industry stability.
Key Employee Disability policy
Law of Large Numbers
Reinsurance
Annuity surrender charges