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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. Process which prevents claim denial as a result of false statement or promise (made by Insurer) - which was relied upon by Insured.
Transplant/Cosmetic Surgery rider
Insurability Type Conditional receipt
Estoppel
Common Accident provision
2. Provides supplemental coverage for physician/surgeon fees if enrolled (during enrollment period ONLY) & pay monthly premium w/ deductible and co-insurance.
Medicare Part B (aka Supplemental Medical Insurance or SMI)
Human Life Value approach
Relation of Earnings to Insurance provision
AIDS/HIV discrimination
3. Preferred or Preferred Smoker; Standard or Standard Smoker; Substandard; Denied.
Underwriting risk categories
Cash value
Plans A-L of Medical Supplement or Medigap
Fraud
4. Allows policy owner to w/draw set % of death benefit upon verification of terminal illness w/ expectancy 12-24 mths.; generally tax-free.
Medicare
Civil Rights/Pregnancy Discrimination Act
Accelerated Benefits (aka Terminal Illness or Living Benefits) rider
Rate (as defined by CIC)
5. Excludes coverage for suicide during 1st 2 yrs. ONLY but - if it does - all premiums must be returned to beneficiary.
Suicide clause/provision
Applicant Representations vs. Warranties
Indemnify
Medicaid/Medi-Cal
6. Monthly; Quarterly; Semi-annually; Annually (cheapest due to less admin cost).
Variable Universal Life policy
Reinsurance
Premium modes
Joint Life (aka "First to die") policy
7. 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
Types of Insurers (by ownership)
Requirements to sell variable life products
Automatic Premium Loan (APL) provision
8. Same as WL but premium low for 1st 3-5 yrs. - THEN has one-time premium increase.
Types of Medical Plans
Modified Premium Whole Life policy
Conformity with State Statute provision
Revocable vs. Irrevocable beneficiary
9. Same as WL but w/ adjustable death benefit (& corresponding premium) & over-fund option but w/ annually renewable term (ART).
Key Employee Disability policy
Universal (aka Flexible Premium Adjustable) Life policy (1 of 4)
Tax implications of an Annuity (1 of 2)
Types of Term Life policies
10. Provides coverage for specific disease(s) - such as cancer or leukemia.
Medicare Part C (aka Medicare Advantage)
Rate (as defined by CIC)
Insurability Type Conditional receipt
Dread Disease policy
11. Intentional OR unintentional failure to disclose material underwriting facts that should have been disclosed; grounds for policy rescission.
Equity Index Whole Life policy
Family or Dependents rider
Concealment
Settlement options for Life policy (1 of 2)
12. Insurer has right to adjust (+ or -) death benefit if age or sex is misstated but normally doesn't void policy.
Group Disability plan
Renewability provision
Health Maintenance Organization (HMO)
Misstatement of Age/Sex provision
13. 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.
Medicaid/Medi-Cal
Transplant/Cosmetic Surgery rider
Employer Liability
Legal Action provision
14. Mathematical calculation based on overall FICA contributions used to determine retirement/disability/survivorship benefit.
Tax implications of medical plans
Levels of Long Term Care provided
Partial disability rider
Primary Insurance Amount (PIA)
15. 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.
Small Employer Medical Expense plan
Waiver of Premium (Waiver of Cost of Insurance) rider
Market Value Adjusted (aka Modified Guaranteed) annuity
Insurable interest
16. 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
Insurable interest
Dividend options
Types of Accident & Health insurance
17. An unintentional mistake committed by an insurance representative; may be covered by E&O insurance.
Family policy
AIDS/HIV discrimination
Errors & Omissions (E&O)
Automatic Premium Loan (APL) provision
18. Same as WL but policy owner can adjust death benefit w/ corresponding premium adjustments; mostly obsolete.
Estoppel
Adjustable Whole Life policy
Insurance contract characteristics (1 of 2)
Partial disability rider
19. Underwriting - determines insurability; Marketing/Sales - determines products; Actuarial - determines rates; Claims - investigates/pays claims.
Trial Application (aka Request for Offer)
Waiver of Premium provision
Cash value
Departments of an Insurer
20. Insurance purchased by other Insurer(s) to spread or diversify risk; promotes industry stability.
Reinsurance
Change of Occupation provision
1035 Exchange
Recurrent disability clause/provision
21. Any person - assoc. - org. - partnership - business trust - LLC - or corp. capable of making an insurance contract.
Types of Insurers (miscellaneous)
Retrocession
Annuity Classifications (5 of 5): # of lives
Insurer (as defined by CIC)
22. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.
Recurrent disability clause/provision
Major Medical plan
Levels of Long Term Care provided
Approval Type Conditional receipt
23. Allows Insured to increase benefit w/out medical exam (subject to age max.) w/ additional premium rate determined @ attained age; must prove income increase.
Viatical Settlement Provider (VSP)
Non-Occupational Disability policy
Age Discrimination in Employment Act (ADEA)
Guaranteed Insurability (aka Additional Purchase or Future Increase) Disability rider
24. 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
Indeterminate Premium Whole Life policy
Family or Dependents rider
Trial Application (aka Request for Offer)
25. 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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26. 1: Individual; 2: Joint - multiple annuitants paid until 1st dies; 3: Joint & Survivor - multiple annuitants paid until 1st dies THEN survivors paid but @ reduced $.
Modified Premium Whole Life policy
Disability Income policy
Annuity Classifications (5 of 5): # of lives
Total disability (any-occupational definition)
27. Federal law which prohibits companies w/ 20+ employees from denying work & medical benefits to employees due to age.
Penalties for violating AIDS/HIV privacy laws
Age Discrimination in Employment Act (ADEA)
Medicaid/Medi-Cal
Errors & Omissions (E&O)
28. Provides accidental death benefit @ full $ of "principal sum". Dismemberment is paid only @ 50% principal sum ("capital sum").
Tax implications of Death Benefit & Cash Value
Health Maintenance Organization (HMO)
Accidental Death & Dismemberment (AD&D) Disability rider
Errors & Omissions (E&O)
29. 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
Universal (aka Flexible Premium Adjustable) Life policy (1 of 4)
COBRA Time Limitations
Legal Action provision
30. Domestic - within home state; Foreign - outside home state; Alien - outside home country.
Valid life insurance contracts must identify...
Point of Service plan
Tax implications of Death Benefit & Cash Value
Types of Insurers (by domicile)
31. 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.
Consolidated Omnibus Budget Reconciliation Act (COBRA)
Endowment Life policy
Indeterminate Premium Whole Life policy
1035 Exchange
32. Same as Universal Life but cash value put in investment vehicles chosen by policy owner (stocks - bonds - munis.); cash value NOT guaranteed.
Modified Premium Whole Life policy
Variable Universal Life policy
Juvenile Life (aka Jumping Juvenile) policy
Tax implications of Death Benefit & Cash Value
33. Waives premium upon disability of Insured until return to work; disability must persist for 90 days or longer; 1st 90 day premiums refunded after 90 days.
Family or Dependents rider
Annuity
Waiver of Premium provision
AIDS/HIV discrimination
34. If 2 or more family members are injured in the same accident - only payment of a single deductible is required.
Requirements to sell variable life products
Common Accident provision
Universal (aka Flexible Premium Adjustable) Life policy (3 of 4)
Supplemental Major Medical plan
35. Application submitted w/out premium; no coverage until submission of full consideration & completed Statement of Continued Good Health.
Trial Application (aka Request for Offer)
Rehabilitation rider
Concealment
Medical Savings Account (MSA) & Health Savings Account (HSA)
36. Upon notice - Insurer must provide Claim Form (Proof of Loss Form) to Insured w/in 15 days.
Indeterminate Premium Whole Life policy
Claim Form (aka Proof of Loss Form) provision
Medicare Part A (aka Hospital Insurance or HI)
Payment of Premium provision
37. Federal law which prohibits companies w/ 15+ employees from decreasing coverage benefits for women affected by pregnancy or childbirth.
Medicare Part C (aka Medicare Advantage)
Civil Rights/Pregnancy Discrimination Act
Settlement options for Life policy (2 of 2)
Modified Endowment Contract (MEC)
38. Allows Insured to increase death benefit w/out medical exam (subject to age max.) w/ additional premium rate determined @ attained age.
Medicare
Guaranteed Insurability Life rider
Equity Indexed annuity
Whole (aka Permanent or Straight) Life 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.
Dividend options
COBRA Time Limitations
Health Maintenance Organization (HMO)
1035 Exchange
40. 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
Primary Insurance Amount (PIA)
Cash value
Automatic Premium Loan (APL) provision
41. Commercial (private) companies; HMOs; PPOs; Blue Cross/Blue Shield; Employer-sponsored plans; Government.
Partial disability rider
Factors that determine premium
Key Employee policy
Types of Accident & Health (A&H) providers
42. Process whereby a reinsurer reinsures w/ another reinsurer.
Parole Pardon Rule
Return of Premium rider
Retrocession
Supplemental Major Medical plan
43. If total premiums paid w/in 1st 7 yrs. exceed net level premium that should have been paid - policy is an MEC.
Types of Term Life policies
7 Pay Test
Residual disability rider
Social Security (aka Old Age Survivors Disability Health Insurance or OASDHI)
44. Primary - if 2 or more - equally shared; Contingent (Secondary) - only if primary dead; Tertiary - only if both primary & secondary dead. If none listed - goes to estate.
7 Pay Test
Rehabilitation rider
Consolidated Omnibus Budget Reconciliation Act (COBRA)
Beneficiary provisions
45. Receipt whereby coverage incepts conditionally upon submission of full consideration and that all underwriting reqs. are met.
Spendthrift provision
Insurability Type Conditional receipt
Annuity surrender charges
Juvenile Life (aka Jumping Juvenile) policy
46. Govt. organization providing health care benefits for dependents of military personnel.
CHAMPUS (aka TriCare)
Comprehensive Major Medical plan
Medi-Cal Share Cost plan
Medicare Part A (aka Hospital Insurance or HI)
47. Provides 24 hr. health coverage both "on" & "off" job - but may cause coverage duplication & coordination challenges.
24 Hour Coverage (CA)
Phases of an annuity
Trusts
Requirements to sell variable life products
48. Same as WL but w/ Decreasing Term rider; upon death - pays monthly income for REMAINING term AFTER which pays full death benefit.
Considerations in replacing Health insurance
Medical Savings Account (MSA) & Health Savings Account (HSA)
Employer-Administered plan
Family Income policy
49. Same as WL but w/ Level Term rider; upon death - pays monthly income for FULL term AFTER which pays full death benefit.
Family Maintenance policy
Types of Accident & Health insurance
Experience vs. Community rating in Group Health plan
Credit Life policy
50. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.
Revocable vs. Irrevocable beneficiary
Reinstatement provision
Accelerated Benefits (aka Terminal Illness or Living Benefits) rider
Settlement options for Life policy (1 of 2)