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CA Life Agent Exam
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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. Coverage for catastrophic loss w/ high limits - front end deductible; co-insurance (80/20%); blanket coverage; stop loss max.
Major Medical plan
Accelerated Benefits (aka Terminal Illness or Living Benefits) rider
CHAMPUS (aka TriCare)
Survivorship (aka "Last to die") policy
2. Savings account for medical expenses; Tax-deductible contributions; tax-deferred growth; tax-free for qualified use; taxable for non-qualified use.
Family Maintenance policy
Single Pay Whole Life policy
Small Employer Medical Expense plan
Medical Savings Account (MSA) & Health Savings Account (HSA)
3. Written contract to transfer risk of premature death from one party to another; pays stated sum upon death; creates instant estate.
Permanent vs. Temporary disability
Partial disability rider
Life insurance policy
Residual disability rider
4. Allows Insured to increase benefit w/out medical exam (subject to age max.) w/ additional premium rate determined @ attained age; must prove income increase.
Pure risk vs. Speculative risk
Tax implications of an Annuity (1 of 2)
Guaranteed Insurability (aka Additional Purchase or Future Increase) Disability rider
Market Value Adjusted (aka Modified Guaranteed) annuity
5. Unilateral - Insurer provides contract; Adhesion - parties must adhere to terms; Aleatory - benefits may not inure equally.
Reinsurance
Insurance contract characteristics (1 of 2)
Dividends
IRS Penalties for Annuities
6. Monthly; Quarterly; Semi-annually; Annually (cheapest due to less admin cost).
Health Insurance Portability and Accountability Act (HIPAA)
Survivorship (aka "Last to die") policy
Key Employee policy
Premium modes
7. Preferred or Preferred Smoker; Standard or Standard Smoker; Substandard; Denied.
Types of Term Life policies
Underwriting risk categories
Partial disability rider
Health Insurance Portability and Accountability Act (HIPAA)
8. Same as Comprehensive Major Medical but w/ integrated deductible; much more expensive.
Supplemental Major Medical plan
Relation of Earnings to Insurance provision
Equity Indexed annuity
Universal (aka Flexible Premium Adjustable) Life policy (3 of 4)
9. Prepaid med. benefits for "subscribers" @ approved facilities; many non-profit; Blue Cross - Hospital stays; Blue Shield - M.D. costs.
Non-Occupational Disability policy
Civil Rights/Pregnancy Discrimination Act
Blue Cross/Blue Shield
Guaranteed Insurability (aka Additional Purchase or Future Increase) Disability rider
10. 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.
Time Limit on Certain Defenses provision
Parole Pardon Rule
Cash value
Medicare
11. 'The inability to perform ANY gainful occupation'.
Grace Period provision
Waiver of Premium provision
Total disability (any-occupational definition)
Life insurance policy
12. Info already known; Info that should have been known; Waived info; Irrelevant info.
Partial disability rider
Insurable interest
Annuity Classifications (4 of 5): Disposition "pay-out" of proceeds
Concealment exceptions
13. 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.
Settlement options for Life policy (2 of 2)
Renewability provision
Beneficiary provisions
14. Insurer has right to adjust (+ or -) death benefit if age or sex is misstated but normally doesn't void policy.
Types of hazards
Exclusions for Major Medical plan
Enhanced Ordinary (aka Extraordinary) Whole Life policy
Misstatement of Age/Sex provision
15. Pre-existing illness/injury; Waiting period; Elimination period; Probationary period; Benefits - Exclusions - Limitations; Underwriting reqs.
AIDS/HIV discrimination
Considerations in replacing Health insurance
Primary Insurance Amount (PIA)
Palliative vs. Curative care
16. PURELY employer-funded account to reimburse employees for qualified medical expenses not covered by group health plan.
Experience vs. Community rating in Group Health plan
Medicare Supplement or Medigap policy
Considerations in replacing Health insurance
Health Reimbursement Account (HRA)
17. Compensates business for loss due to death or disability of key employee; premiums not deductible but benefits tax-free.
Policy delivery
Tax implications of an Annuity (1 of 2)
CHAMPUS (aka TriCare)
Key Employee policy
18. No-charge annuity w/drawals allowed up to 10% of total - THEN penalized on sliding scale based on # policy yrs.; conditionally waived.
Requirements to sell variable life products
Annuity surrender charges
Premium modes
Rehabilitation rider
19. Domestic - within home state; Foreign - outside home state; Alien - outside home country.
Types of Insurers (by domicile)
Types of Renewability provisions
Departments of an Insurer
Types of Accident & Health insurance
20. Waives premium upon disability of Insured until return to work; disability must persist for 6 mths. or longer. Cash value & dividends not affected.
Whole (aka Permanent or Straight) Life policy
Recurrent disability clause/provision
Waiver of Premium (Waiver of Cost of Insurance) rider
Annuity Classifications (2 of 5): When benefits begin
21. Tendency of poorer risks to seek insurance.
Adverse selection
Rate (as defined by CIC)
Annuity surrender charges
Types of Insurers (by authorization)
22. Facultative - case by case agreements; Automatic/Treaty - automatic acceptance of risk percentage per previous agreement.
Types of reinsurance
Types of Insurers (by ownership)
Earned vs. Unearned premium
Convertibility provision
23. Death benefit determined by Insured's financial goals & needs (minus assets).
Accidental Death & Dismemberment (AD&D) Life policy
Medicare Part A (aka Hospital Insurance or HI)
Needs approach (most common)
Types of Insurers (by sector)
24. Excludes coverage for suicide during 1st 2 yrs. ONLY but - if it does - all premiums must be returned to beneficiary.
Claim Form (aka Proof of Loss Form) provision
Basic Medical plan
Suicide clause/provision
Medicare Part B (aka Supplemental Medical Insurance or SMI)
25. Provides for continued operation of business if partner becomes disabled - by allowing other partner(s) to buy disabled partner's interest in business.
Blackout Period
Business Continuation (aka Buy-Sell) Disability policy
Limited Pay Whole Life policy
Key Employee Disability policy
26. Coverage remains in effect for 31 days past premium due date; benefits paid during grace period would be deducted from sum.
Grace Period provision
Universal (aka Flexible Premium Adjustable) Life policy (2 of 4)
Rehabilitation rider
Applicant Representations vs. Warranties
27. 1: Fixed - guaranteed fixed monthly income & fixed interest rate; 2: Variable - unguaranteed; monthly income varies based on stocks/bond returns.
Transplant/Cosmetic Surgery rider
Annuity Classifications (3 of 5): Source of income
Universal (aka Flexible Premium Adjustable) Life policy (2 of 4)
Medical cost containment (aka Managed care)
28. Covers entire family w/ WL for breadwinner & (convertible) Level Term for spouse & children (until certain age).
Medicare
Palliative vs. Curative care
Types of hazards
Family policy
29. Application submitted w/out premium; no coverage until submission of full consideration & completed Statement of Continued Good Health.
Misstatement of Age/Sex provision
Trial Application (aka Request for Offer)
Medicare Part B (aka Supplemental Medical Insurance or SMI)
Types of Renewability provisions
30. 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
Annuity
Law of Large Numbers
Key Employee policy
31. 1: parties to contract; 2: insured party or life; 3: insurable interest - if 3rd party; 4: risks insured against; 5: policy period (term); 6: premium & mode.
Valid life insurance contracts must identify...
Phases of an annuity
Market Value Adjusted (aka Modified Guaranteed) annuity
Reinsurance
32. War/Military; Intentional self-inflicted; Aviation (non-commercial); Foreign country; Loss of professional license; Illegal activity; Mental disorders (after 1-2 yrs.).
Common Disability Exclusions
Annuity
Key Employee Disability policy
Approval Type Conditional receipt
33. Responsible adult trustee designated to manage death benefits for minor child beneficiary until adulthood.
Rescission
Single Pay Whole Life policy
CHAMPUS (aka TriCare)
Trusts
34. Private sector (Commercial) - provides LA&H - P&C - & LTC; Public sector (Gov't) - provides flood - work. comp. - Medicare/Medicaid - Group Life (SGLI/FEGLI).
Insurer (as defined by CIC)
Types of Insurers (by sector)
Payment of Premium provision
Blackout Period
35. Permanent - not recoverable (spinal cord injury); Temporary - recoverable (temp. illness/injury - broken limb).
Permanent vs. Temporary disability
Reinsurance
Guaranteed Insurability Life rider
Peril vs. Hazard
36. Type of partial disability rider - which pays fluctuating % of lost income w/out time limit.
Residual disability rider
Key Employee policy
Concealment exceptions
Notice of Claim provision
37. Provides supplemental coverage for physician/surgeon fees if enrolled (during enrollment period ONLY) & pay monthly premium w/ deductible and co-insurance.
Incontestability clause/provision
Types of Accident & Health (A&H) providers
Long Term Care (LTC) policy
Medicare Part B (aka Supplemental Medical Insurance or SMI)
38. 1: Req. - unless self-employed; 2: 7-day wait for disability benefits; 3: Premium based on ex-mod; 4: Rates approved by CDI; 5: to sell - must satisfy education reqs.
Supplemental Major Medical plan
Health Insurance Portability and Accountability Act (HIPAA)
Types of Licensed Producers
CA Work. Comp. Statutes
39. Authorized (admitted) - can conduct business in state; Unauthorized (non-admitted) - cannot conduct business in state (w/ one exception).
Convertibility provision
Medi-Cal Share Cost plan
Types of Insurers (by authorization)
24 Hour Coverage (CA)
40. Life license + NASD (FINRA) Series 6 or 7.
Flexible Spending Account (FSA)
Requirements to sell variable life products
Age Discrimination in Employment Act (ADEA)
Fraud
41. Annuity distributions prior to age 59 1/2 incur a 10% IRS penalty EXCEPT for death - disability - immediate annuity - or rollover.
IRS Penalties for Annuities
Grace Period provision
Medicare Part C (aka Medicare Advantage)
Dread Disease policy
42. Business continuation funding plan whereby each partner agrees to buy Life policies on each other - but not themselves.
Equity Index Whole Life policy
Whole (aka Permanent or Straight) Life policy
Cross Purchase Plan
Insurable interest
43. Qualified Annuity - Tax-deductible contributions & tax-deferred growth but fully taxable w/drawals.
Tax implications of an Annuity (1 of 2)
Loss exposure
Health Reimbursement Account (HRA)
Law of Large Numbers
44. Fraternal - non-profit - members only; Reciprocal - unincorp'd org. - members insure each other; Lloyd's Assoc. - groups sharing risks; Surplus lines - special market risks.
Insuring clause/provision (aka Insuring Agreement)
Types of Insurers (miscellaneous)
Cost of Living Adjustment (COLA) Disability rider
Return of Premium rider
45. Allows for Term policy renewal @ higher premium w/out medical exam; guarantees insurability; based on actual/attained age.
Endowment Life policy
Free Look provision
Renewability provision
Trial Application (aka Request for Offer)
46. Disability policy rider covering "the inability to perform some - but not all of your duties"; pays max. 50% of disability benefit for up to 6 mths.
Revocable vs. Irrevocable beneficiary
Partial disability rider
Indeterminate Premium Whole Life policy
Accidental Death (aka Multiple Indemnity) rider
47. Potential circumstance that could cause a loss; measured in dollars.
Beneficiary provisions
Juvenile Life (aka Jumping Juvenile) policy
Errors & Omissions (E&O)
Loss exposure
48. Receipt whereby coverage incepts conditionally upon submission of full consideration and that all underwriting reqs. are met.
Insurability Type Conditional receipt
Exclusions to Work. Comp.
Doctrine of Comity
Accidental Death (aka Multiple Indemnity) rider
49. Taxable income (unlike individual plans); can be either short-term - 13-52 wks. max. or long-term - longer than 52 wks.
Annuity surrender charges
Pure risk vs. Speculative risk
Group Disability plan
Types of Insurers (by authorization)
50. Period of time following any children's survivor benefit & before benefits are provided to employee's widow/widower.
Blackout Period
Graded Premium Whole Life policy
Rate (as defined by CIC)
Endowment Life policy
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