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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 - 2 types; Suicide (1st 2 yrs.); Aviation (non-commercial); Hazardous hobbies; Criminal acts; Alcohol/Drug influenced.
Common Life Exclusions
Renewability provision
Reinsurance
Levels of Long Term Care provided
2. 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.
Incontestability clause/provision
Variable Universal Life policy
Small Employer Medical Expense plan
Renewability provision
3. Permanent - not recoverable (spinal cord injury); Temporary - recoverable (temp. illness/injury - broken limb).
Common Disability Exclusions
Human Life Value approach
Permanent vs. Temporary disability
Medicare Part A (aka Hospital Insurance or HI)
4. If Insured changes to: more hazardous job - benefits reduced; less hazardous job - premiums reduce.
Change of Occupation provision
Needs approach (most common)
Variable Life policy (2 of 2)
Modified Premium Whole Life policy
5. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.
Types of Renewability provisions
Survivorship (aka "Last to die") policy
Errors & Omissions (E&O)
Medicare Part B (aka Supplemental Medical Insurance or SMI)
6. No coverage for injuries while: 1: @ voluntary social event; 2: self-inflicted (intentional); 3: under alcohol/drug influence; 4: committing criminal act; 5: aggressor in workplace fight; 6: participating in athletic event (non-pro. athletes) 7: par
Exclusions to Work. Comp.
Common Disaster (Simultaneous Death Act) clause/provision
Common Accident provision
Elimination (aka Waiting) period
7. Dependent children are covered until 19 or 23 (full-time student only) or until self-sufficient (if handicapped).
Variable Universal Life policy
Dependent coverage
Settlement options for Life policy (1 of 2)
Total disability (more restrictive definition)
8. Tendency of poorer risks to seek insurance.
Types of Medical Plans
Adverse selection
Workers' Compensation insurance
Needs approach (most common)
9. Same as WL but premium low for 1st 5 yrs. - THEN has annual premium increases for set # yrs. - THEN level premium.
Family policy
Graded Premium Whole Life policy
Binding receipt (aka Temporary Insurance Agreement)
Annuity
10. Insurer has right to rescind policy & return premium if material misrepresentation in application is found w/in 1st 2 yrs.
Incontestability clause/provision
Applicant Representations vs. Warranties
Accelerated Benefits (aka Terminal Illness or Living Benefits) rider
Tax implications of an Annuity (1 of 2)
11. Insurer has right to adjust (+ or -) death benefit if age or sex is misstated but normally doesn't void policy.
Primary Insurance Amount (PIA)
Medicare Part A (aka Hospital Insurance or HI)
Misstatement of Age/Sex provision
Penalties for violating AIDS/HIV privacy laws
12. Policy covering minor child; premium fixed but death benefit increases by 5 times @ age 18 or 21.
Conformity with State Statute provision
Requirements to sell variable life products
Juvenile Life (aka Jumping Juvenile) policy
Tax implications of an Estate
13. Period of time following any children's survivor benefit & before benefits are provided to employee's widow/widower.
Mortality vs. Morbidity tables
Universal (aka Flexible Premium Adjustable) Life policy (4 of 4)
Blackout Period
Medi-Cal Share Cost plan
14. Part of IRS Section 125 cafeteria plan - which allows pre-tax payroll deductions for qualified medical expenses or child/dependent care.
Family or Dependents rider
Social Security (aka Old Age Survivors Disability Health Insurance or OASDHI)
Preferred Provider Organization (PPO)
Flexible Spending Account (FSA)
15. Federal law which prohibits companies w/ 15+ employees from decreasing coverage benefits for women affected by pregnancy or childbirth.
Term Life policy
Return of Premium rider
Annuity surrender charges
Civil Rights/Pregnancy Discrimination Act
16. Earned premium is $ paid for coverage to date. Unearned premium is $ paid & returnable due to coverage not provided.
Levels of Long Term Care provided
Earned vs. Unearned premium
Disability Income policy
Cash value
17. Plan A is the CORE benefit & is least expensive; All other plans include Plan A + additional benefits. Plans F & J are high deductible. K & L are both deductible & co-pay plans.
Plans A-L of Medical Supplement or Medigap
Common Disaster (Simultaneous Death Act) clause/provision
Types of reinsurance
Key Employee Disability policy
18. Treating or mitigating loss exposures through 1: avoidance; 2: retention (deductibles); 3: sharing; 4: reduction; or 5: transfer.
Health Reimbursement Account (HRA)
Penalties for violating AIDS/HIV privacy laws
Risk management
Departments of an Insurer
19. Process which prevents claim denial as a result of false statement or promise (made by Insurer) - which was relied upon by Insured.
Annuity Classifications (5 of 5): # of lives
Cash value
Estoppel
Medicaid/Medi-Cal
20. Fixed premium w/ guaranteed min. death benefit that may increase due to higher than expected investment returns.
Variable Life policy (2 of 2)
Medicare Part A (aka Hospital Insurance or HI)
Term Life policy
Types of Insurers (miscellaneous)
21. Generally 10 days after policy delivery to cancel policy w/ full refund - except 30 days for seniors or for replacement policies.
Tax implications of medical plans
Spendthrift provision
Free Look provision
Indeterminate Premium Whole Life policy
22. Provides disability income during surgery recovery from life-threatening condition (& sometimes cosmetic surgery).
Transplant/Cosmetic Surgery rider
Life insurance policy
Estoppel
Palliative vs. Curative care
23. Part A - Inpatient hospital deductibles vary on # of days; limited reserve days; finite benefit; 1st 3 pints blood; Part B - 20% co-payment.
Types of hazards
Workers' Compensation insurance
Small Employer Medical Expense plan
Medicare Part A & B "Gaps"
24. Reappearance of disability w/in 6 mth. period after "recovery" from same disability is considered recurrence - not new disability.
Medicare Part D
1035 Exchange
Partial disability rider
Recurrent disability clause/provision
25. Summary of coverage including premium & mode of payment - death benefit - beneficiary(ies) - exclusions - & promise to pay.
Elimination (aka Waiting) period
Insuring clause/provision (aka Insuring Agreement)
Annuity Classifications (2 of 5): When benefits begin
Waiver of Premium (Waiver of Cost of Insurance) rider
26. Life license + NASD (FINRA) Series 6 or 7.
Requirements to sell variable life products
Presumptive disability
Consolidated Omnibus Budget Reconciliation Act (COBRA)
Annuity Classifications (2 of 5): When benefits begin
27. Upon death - death benefit is paid + the aggregate of cash value accumulated to date; add-on to WL policy ONLY.
Settlement options for Life policy (1 of 2)
Return of Cash Value rider
Reinsurance
Group Disability plan
28. 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
Multiple Employer Trust (MET) aka Multiple Employer Welfare Association (MEWA)
Return of Premium rider
Beneficiary provisions
29. Representation - oral or written statement made to best of knowledge or belief; Warranty - statement guaranteed/presumed/understood to be true.
Employer-Administered plan
Applicant Representations vs. Warranties
Business Continuation (aka Buy-Sell) policy
Law of Large Numbers
30. Periodic return of premium to policy owners from Mutual (Par) Companies; not guaranteed & not taxable as income; may be used in 6 ways.
Types of Agency Authority
Major Medical plan
Time Limit on Certain Defenses provision
Dividends
31. Same as WL but w/ Level Term rider; upon death - pays monthly income for FULL term AFTER which pays full death benefit.
Incontestability clause/provision
Limited Pay Whole Life policy
Family Maintenance policy
Major Medical plan
32. Responsible adult trustee designated to manage death benefits for minor child beneficiary until adulthood.
Family or Dependents rider
Applicant Representations vs. Warranties
Adverse selection
Trusts
33. Excludes coverage for suicide during 1st 2 yrs. ONLY but - if it does - all premiums must be returned to beneficiary.
Suicide clause/provision
Grace Period provision
Non-forfeiture options for WL policy
Group Disability plan
34. Palliative - treatment to manage pain; Curative - treatment to cure illness/condition.
Health Maintenance Organization (HMO)
Medical Savings Account (MSA) & Health Savings Account (HSA)
Palliative vs. Curative care
Tax implications of an Estate
35. Business continuation funding plan whereby each partner agrees to buy Life policies on each other - but not themselves.
Relation of Earnings to Insurance provision
Cross Purchase Plan
Business Continuation (aka Buy-Sell) Disability policy
Types of Accident & Health insurance
36. To "make whole again" w/out benefit or detriment; neither monetary profit nor loss.
Health Maintenance Organization (HMO)
Equity Index Whole Life policy
Indemnify
Medical Savings Account (MSA) & Health Savings Account (HSA)
37. Funding mechanism whereby employer & employee share cost of premium. Upon death - benefit is shared between employer & beneficiary.
Split Dollar Plan
Dependent coverage
Impairment (Exclusion) rider
Cost of Living Adjustment (COLA) Life rider
38. Experience - rates impacted by actual prior claim experience of actual group; Community - identical rates used for entire community - regardless of experience.
Key Employee policy
Convertibility provision
Renewability provision
Experience vs. Community rating in Group Health plan
39. Domestic - within home state; Foreign - outside home state; Alien - outside home country.
Types of Insurers (by domicile)
Types of hazards
Point of Service plan
Grace Period provision
40. Combination of Basic Medical & Major Medical in one policy; Basic pays 1st - then Major Medical w/ corridor deductible.
Applicant Representations vs. Warranties
Employer Liability
Family policy
Comprehensive Major Medical plan
41. Allows Term policy conversion to Permanent policy w/out medical exam; must be identical or lower death benefit; based on either attained OR original age.
Loss of Earnings Test
Beneficiary provisions
Convertibility provision
Valid life insurance contracts must identify...
42. Temp. coverage for set duration w/ death benefit ONLY (no cash value) - offers largest $ for lowest premium; renewable; convertible.
Claim Form (aka Proof of Loss Form) provision
Return of Premium rider
Term Life policy
Exclusions to Work. Comp.
43. Available for any reason up to full cash value @ fixed (max 8%) OR variable interest rate; loan $ + interest deducted from benefit @ death.
Policy loans
Group Disability plan
Dental Plan
Departments of an Insurer
44. Receipt whereby coverage incepts ONLY after underwriting approval.
Approval Type Conditional receipt
Convertibility provision
Return of Premium rider
Guaranteed Insurability Life rider
45. Provides hospital insurance automatically @ age 65 (if FICA qualified) @ no fee but may have deductible & co-pay.
Workers' Compensation insurance
Cross Purchase Plan
Palliative vs. Curative care
Medicare Part A (aka Hospital Insurance or HI)
46. Covers disabilities occurring ONLY "off" job; benefits do not overlap work. comp. (i.e. Group plan).
Point of Service plan
Non-Occupational Disability policy
Single Pay Whole Life policy
Annuity surrender charges
47. Policy owner must notify Insurer of loss either in writing - in person or by phone w/in 20 days.
Notice of Claim provision
Supplemental Major Medical plan
Suicide clause/provision
Types of reinsurance
48. Federal law to protect Federal employees' (& their beneficiaries') pension - group insurance - & welfare benefits.
Notice of Claim provision
Employee Retirement Income Security Act (ERISA)
Family or Dependents rider
Medical cost containment (aka Managed care)
49. Intentional OR unintentional failure to disclose material underwriting facts that should have been disclosed; grounds for policy rescission.
Reinsurance
Concealment
Types of Accident & Health insurance
Non-Occupational Disability policy
50. After 2-3 yrs. - Whole Life policy equity builds tax-deferred @ fixed interest rate until it equals death benefit; borrowable but taxable.
Medical Savings Account (MSA) & Health Savings Account (HSA)
Cash value
Common Life Exclusions
Split Dollar Plan