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. Refund of 50-80% of premium (minus claims paid) every 5-10 yrs. OR age 65; expensive!
Rescission
Proof of Loss provision
Policy delivery
Return of Premium rider
2. Monthly; Quarterly; Semi-annually; Annually (cheapest due to less admin cost).
Reinsurance
Family policy
Premium modes
Policy delivery
3. Fraternal - non-profit - members only; Reciprocal - unincorp'd org. - members insure each other; Lloyd's Assoc. - groups sharing risks; Surplus lines - special market risks.
Types of Insurers (by ownership)
Cross Purchase Plan
Rate (as defined by CIC)
Types of Insurers (miscellaneous)
4. Voiding an insurance contract based on fraud - concealment or material misrepresentation; premiums returned; policy treated as never existing.
Life insurance policy
Dividends
Indeterminate Premium Whole Life policy
Rescission
5. 1: Straight aka Pure Life - lifetime income but no survivorship refund; 2: Life w/ Period Certain - lifetime income w/ death benefit of monthly annuity for remaining predetermined term. 3: Annuity Certain - monthly income paid for predetermined term
Levels of Long Term Care provided
Annuity Classifications (4 of 5): Disposition "pay-out" of proceeds
Total disability (more restrictive definition)
Penalties for violating AIDS/HIV privacy laws
6. 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)
Universal (aka Flexible Premium Adjustable) Life policy (3 of 4)
Dread Disease policy
Concealment
7. Periodic return of premium to policy owners from Mutual (Par) Companies; not guaranteed & not taxable as income; may be used in 6 ways.
Survivorship (aka "Last to die") policy
Viatical Settlement Provider (VSP)
Employer-Administered plan
Dividends
8. Same as WL but death benefit increases annually - linked to Consumer Price Index; premium increases annually OR is set high from start.
Equity Index Whole Life policy
Graded Premium Whole Life policy
CHAMPUS (aka TriCare)
Modified Endowment Contract (MEC)
9. 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
Equity Indexed annuity
Return of Premium rider
Total disability (as commonly defined)
10. 'The inability to perform your OWN normal occupation or daily duties'.
Parole Pardon Rule
Small Employer Medical Expense plan
Total disability (as commonly defined)
Medicare Part A & B "Gaps"
11. Reappearance of disability w/in 6 mth. period after "recovery" from same disability is considered recurrence - not new disability.
Impairment (Exclusion) rider
Recurrent disability clause/provision
Policy loans
Indeterminate Premium Whole Life policy
12. Coverage remains in effect for 31 days past premium due date; benefits paid during grace period would be deducted from sum.
Primary Insurance Amount (PIA)
Types of Term Life policies
Grace Period provision
Revocable vs. Irrevocable beneficiary
13. Privately-provided or Medicare-provided (if no private carrier) prescription drug plans for qualified individuals but w/ premium - deductible & co-pay.
Credit Life policy
Medicare Part D
Types of Insurers (by ownership)
CHAMPUS (aka TriCare)
14. Identical to Incontestable Clause in Life policy.
Time Limit on Certain Defenses provision
Payment of Premium provision
Accidental Death & Dismemberment (AD&D) Life policy
Non-forfeiture options for WL policy
15. 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
Modified Endowment Contract (MEC)
Exclusions to Work. Comp.
Errors & Omissions (E&O)
Accidental Death & Dismemberment (AD&D) Disability rider
16. Unilateral - Insurer provides contract; Adhesion - parties must adhere to terms; Aleatory - benefits may not inure equally.
Approval Type Conditional receipt
Levels of Long Term Care provided
Insurance contract characteristics (1 of 2)
Types of Insurers (by authorization)
17. Preferred or Preferred Smoker; Standard or Standard Smoker; Substandard; Denied.
Underwriting risk categories
Viatical Settlement Provider (VSP)
Annuity Classifications (4 of 5): Disposition "pay-out" of proceeds
Employee Retirement Income Security Act (ERISA)
18. 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.
Single Pay Whole Life policy
Consolidated Omnibus Budget Reconciliation Act (COBRA)
Common Disaster (Simultaneous Death Act) clause/provision
Dividend options
19. Compensates business for loss due to death or disability of key employee; premiums not deductible but benefits tax-free.
Types of Accident & Health (A&H) providers
Rehabilitation rider
Accidental Death & Dismemberment (AD&D) Life policy
Key Employee policy
20. Same as WL but cash value put in investment vehicles chosen by policy owner (stocks - bonds - munis.); cash value NOT guaranteed.
Types of Insurers (miscellaneous)
Pure risk vs. Speculative risk
Variable Life policy (1 of 2)
Annuity surrender charges
21. Expands individual WL policy to include Term Life for dependents (spouse - children - etc.).
Equity Index Whole Life policy
Family or Dependents rider
Common Disaster (Simultaneous Death Act) clause/provision
Cross Purchase Plan
22. Same as WL but premium low for 1st 3-5 yrs. - THEN has one-time premium increase.
Cost of Living Adjustment (COLA) Disability rider
Modified Premium Whole Life policy
Policy delivery
Annuity Classifications (5 of 5): # of lives
23. 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
Flexible Spending Account (FSA)
Common Accident provision
Non-forfeiture options for WL policy
24. Same as WL but death benefit decreases each yr. w/ dividends paid annually to offset decrease.
Enhanced Ordinary (aka Extraordinary) Whole Life policy
Human Life Value approach
Indemnify
Conformity with State Statute provision
25. Grows @ fixed interest rate for set term but cash value may adjust to prevailing rate (+ or -) if fully surrendered before term ends; % w/drawal ok.
Health Insurance Portability and Accountability Act (HIPAA)
Elements to contract
Plans A-L of Medical Supplement or Medigap
Market Value Adjusted (aka Modified Guaranteed) annuity
26. Same as WL but premium low for set # yrs. - THEN premiums vary (+ or -) based on Insurer's investment returns - w/ Gmax.
Supplemental Major Medical plan
Return of Premium rider
Time Limit on Certain Defenses provision
Indeterminate Premium Whole Life policy
27. Same as WL but can be "paid-up" early by paying larger premium for shorter payment period (i.e. 10 Pay Life - 20 Pay Life).
Limited Pay Whole Life policy
Multiple Employer Trust (MET) aka Multiple Employer Welfare Association (MEWA)
Change of Occupation provision
Reinstatement provision
28. 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.
Health Insurance Portability and Accountability Act (HIPAA)
Term Life policy
COBRA Time Limitations
Medical Savings Account (MSA) & Health Savings Account (HSA)
29. 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.
Business Overhead Expense (BOE) Disability policy
Types of Accident & Health (A&H) providers
Flexible Spending Account (FSA)
Tax implications of medical plans
30. Policyholders - Mutual (participating) co. - may pay dividends; Stockholders - Stock (non-participating) co. - no dividends.
Types of Renewability provisions
Needs approach (most common)
Types of Insurers (by ownership)
Cross Purchase Plan
31. Waives premium on Life policy for minor child until age 21 in event premium payor dies or becomes disabled.
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
32. Underwriting - determines insurability; Marketing/Sales - determines products; Actuarial - determines rates; Claims - investigates/pays claims.
Indemnify
Primary Insurance Amount (PIA)
Departments of an Insurer
Return of Premium rider
33. Pure risk involves chance of loss ONLY (accident or misfortune). Speculative risk involves chance of loss OR gain (gambling - stock investment).
Types of Licensed Producers
Annuity Classifications (5 of 5): # of lives
Life insurance policy
Pure risk vs. Speculative risk
34. Process whereby a reinsurer reinsures w/ another reinsurer.
Types of Term Life policies
Retrocession
Graded Premium Whole Life policy
Types of Insurers (miscellaneous)
35. Must be delivered in person or by certified - registered or 1st-class mail w/ signature - unless waived by Insurance Commissioner.
Policy delivery
Indeterminate Premium Whole Life policy
Errors & Omissions (E&O)
Types of Insurers (miscellaneous)
36. Covers entire family w/ WL for breadwinner & (convertible) Level Term for spouse & children (until certain age).
Factors that determine premium
Family policy
Employee Retirement Income Security Act (ERISA)
Juvenile Life (aka Jumping Juvenile) policy
37. War/Military; Intentional self-inflicted; Aviation (non-commercial); Foreign country; Loss of professional license; Illegal activity; Mental disorders (after 1-2 yrs.).
Policy loans
Dental Plan
Common Disability Exclusions
Types of Accident & Health insurance
38. Same as Universal Life but cash value put in investment vehicles chosen by policy owner (stocks - bonds - munis.); cash value NOT guaranteed.
Tax implications of an Estate
Variable Universal Life policy
Partial disability rider
Business Overhead Expense (BOE) Disability policy
39. 1: Cash (tax-free); 2: Apply to future premiums; 3: Retained by Insurer @ interest; 4: Buy Paid-up WL policy add-ons; 5: Pay-up existing policy; 6: Buy 1-yr. Term policy.
COBRA Time Limitations
Dividend options
Guaranteed Insurability Life rider
Experience vs. Community rating in Group Health plan
40. Death benefit is NOT taxable. Cash value grows tax-deferred but cost basis (base premium) is not taxable - only interest is.
Types of Insurers (by domicile)
Tax implications of Death Benefit & Cash Value
Universal (aka Flexible Premium Adjustable) Life policy (1 of 4)
Split Dollar Plan
41. Earned premium is $ paid for coverage to date. Unearned premium is $ paid & returnable due to coverage not provided.
Earned vs. Unearned premium
Insurance contract characteristics (1 of 2)
Limited Pay Whole Life policy
Dependent coverage
42. Allows Insured to increase death benefit w/out medical exam (subject to age max.) w/ additional premium rate determined @ attained age.
Return of Premium rider
Guaranteed Insurability Life rider
Fraud
Insurer (as defined by CIC)
43. Compensates business for loss due to disability of key employee; premiums not deductible but benefits tax-free.
Dividends
Key Employee Disability policy
Grace Period provision
Premium modes
44. IRS allows tax-free transfer of cash values between 2 LIKE policies (i.e. Life to Life - Annuity to Annuity - or Life to Annuity).
Current Assumption (aka Interest-Sensitive) Whole Life policy
Loss exposure
1035 Exchange
Common Disability Exclusions
45. Same as WL but w/ Decreasing Term rider; upon death - pays monthly income for REMAINING term AFTER which pays full death benefit.
Types of Insurers (by domicile)
Pure risk vs. Speculative risk
Family Income policy
Types of Term Life policies
46. 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.
Medicare Part A & B "Gaps"
Annuity Classifications (4 of 5): Disposition "pay-out" of proceeds
Multiple Employer Trust (MET) aka Multiple Employer Welfare Association (MEWA)
Tax implications of Disability policy
47. Insurer has right to adjust (+ or -) death benefit if age or sex is misstated but normally doesn't void policy.
Entire Contract provision
Business Continuation (aka Buy-Sell) Disability policy
Misstatement of Age/Sex provision
Business Overhead Expense (BOE) Disability policy
48. Receipt whereby coverage incepts conditionally upon submission of full consideration and that all underwriting reqs. are met.
Departments of an Insurer
Employer Liability
Tax implications of Disability policy
Insurability Type Conditional receipt
49. Conditional - coverage is conditional; Personal - parties are people; Good faith - honesty/integrity; Fiduciary - req's financial trust.
Insurance contract characteristics (2 of 2)
Insurance contract characteristics (1 of 2)
Total disability (any-occupational definition)
Consolidated Omnibus Budget Reconciliation Act (COBRA)
50. Physical - slippery floor; Moral - dishonest acts; Morale - carelessness or recklessness.
Modified Premium Whole Life policy
Health Reimbursement Account (HRA)
Types of hazards
Tax implications of Dividends - Loans & Interest