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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. Dependent children are covered until 19 or 23 (full-time student only) or until self-sufficient (if handicapped).
Permanent vs. Temporary disability
Dependent coverage
Cost of Living Adjustment (COLA) Disability rider
Business Continuation (aka Buy-Sell) Disability policy
2. 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
Experience vs. Community rating in Group Health plan
Return of Premium rider
Types of Term Life policies
3. Govt. organization providing health care benefits for dependents of military personnel.
Pure risk vs. Speculative risk
Annuity surrender charges
CHAMPUS (aka TriCare)
Graded Premium Whole Life policy
4. A&H - A&S - Sickness only; Medical; Disability; Accident only; Travel accident; LTC; Medicare supplement; AD&D; Dental/Vision/Prescription; Limited.
Types of Accident & Health insurance
Life insurance policy
Approval Type Conditional receipt
Family Income policy
5. Same as WL but w/ Decreasing Term rider; upon death - pays monthly income for REMAINING term AFTER which pays full death benefit.
Underwriting risk categories
Waiver of Premium provision
Family Maintenance policy
Family Income policy
6. Provides professional services - rehabilitation - training/re-training & related costs to assist Insured in returning to work.
Rehabilitation rider
Types of Insurers (by domicile)
Conformity with State Statute provision
Entire Contract provision
7. Private sector (Commercial) - provides LA&H - P&C - & LTC; Public sector (Gov't) - provides flood - work. comp. - Medicare/Medicaid - Group Life (SGLI/FEGLI).
Types of Insurers (by sector)
Relation of Earnings to Insurance provision
Earned vs. Unearned premium
Transplant/Cosmetic Surgery rider
8. Monthly; Quarterly; Semi-annually; Annually (cheapest due to less admin cost).
Premium modes
Spendthrift provision
Universal (aka Flexible Premium Adjustable) Life policy (4 of 4)
Elimination (aka Waiting) period
9. Mortality is the statistical possibility of death @ each age. Morbidity is the statistical possibility & extent of disability @ each age.
Mortality vs. Morbidity tables
Indeterminate Premium Whole Life policy
Annuity Classifications (3 of 5): Source of income
Dividend options
10. Allows Insured to increase death benefit w/out medical exam (subject to age max.) w/ additional premium rate determined @ attained age.
Legal Action provision
Guaranteed Insurability Life rider
Joint Life (aka "First to die") policy
Multiple Employer Trust (MET) aka Multiple Employer Welfare Association (MEWA)
11. Refund of 50-80% of premium (minus claims paid) every 5-10 yrs. OR age 65; expensive!
Non-Occupational Disability policy
Return of Premium rider
Automatic Premium Loan (APL) provision
Spendthrift provision
12. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.
Social Security (aka Old Age Survivors Disability Health Insurance or OASDHI)
Insurance contract characteristics (2 of 2)
Employer Liability
Levels of Long Term Care provided
13. 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
Dependent coverage
Long Term Care (LTC) policy
Automatic Premium Loan (APL) provision
14. Provides coverage for specific disease(s) - such as cancer or leukemia.
CA Work. Comp. Statutes
Single Pay Whole Life policy
Dread Disease policy
Annuity Classifications (1 of 5): How premium is paid
15. Provides usual & customary business expenses (rent - utilities - salaries - mortgage) if owner becomes disabled; premiums deductible - benefits taxable.
Partial disability rider
Major Medical plan
Premium modes
Business Overhead Expense (BOE) Disability policy
16. Policy covering minor child; premium fixed but death benefit increases by 5 times @ age 18 or 21.
Phases of an annuity
Primary Insurance Amount (PIA)
24 Hour Coverage (CA)
Juvenile Life (aka Jumping Juvenile) policy
17. War; elective cosmetic surgery; routine dental; work. comp.-covered claims; self-inflicted (intentional); gov't. facility treatment; LTC; private nursing.
Accidental Death (aka Multiple Indemnity) rider
1035 Exchange
Incontestability clause/provision
Exclusions for Major Medical plan
18. Temp. coverage for set duration w/ death benefit ONLY (no cash value) - offers largest $ for lowest premium; renewable; convertible.
Types of Licensed Producers
Grace Period provision
Variable Life policy (2 of 2)
Term Life policy
19. 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
Conformity with State Statute provision
Reinstatement provision
Indemnify
20. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.
Types of Insurers (by sector)
Tax implications of medical plans
Types of Term Life policies
Types of Renewability provisions
21. The state in which the contract is accepted or delivered is the state that possesses regulatory jurisdiction over Group plan.
Doctrine of Comity
Indeterminate Premium Whole Life policy
Blackout Period
Reinsurance
22. Receipt whereby coverage incepts conditionally upon submission of full consideration and that all underwriting reqs. are met.
Social Security Benefit (Supplement) rider
Types of reinsurance
Presumptive disability
Insurability Type Conditional receipt
23. Combination of Basic Medical & Major Medical in one policy; Basic pays 1st - then Major Medical w/ corridor deductible.
Payor (aka Waiver of Payor's Premium) rider
Juvenile Life (aka Jumping Juvenile) policy
Comprehensive Major Medical plan
Universal (aka Flexible Premium Adjustable) Life policy (3 of 4)
24. Provides for continued operation of business if partner becomes disabled - by allowing other partner(s) to buy disabled partner's interest in business.
Occupational Disability policy
Business Continuation (aka Buy-Sell) Disability policy
Types of Insurers (by ownership)
Concealment exceptions
25. Voiding an insurance contract based on fraud - concealment or material misrepresentation; premiums returned; policy treated as never existing.
Common Disaster (Simultaneous Death Act) clause/provision
Rescission
Cost of Living Adjustment (COLA) Disability rider
Medicare Part B (aka Supplemental Medical Insurance or SMI)
26. Provides disability income during surgery recovery from life-threatening condition (& sometimes cosmetic surgery).
Employee Retirement Income Security Act (ERISA)
Transplant/Cosmetic Surgery rider
Settlement options for Life policy (1 of 2)
Revocable vs. Irrevocable beneficiary
27. Insurance purchased by other Insurer(s) to spread or diversify risk; promotes industry stability.
Accidental Death & Dismemberment (AD&D) Disability rider
Reinsurance
Major Medical plan
Insurer (as defined by CIC)
28. Commercial (private) companies; HMOs; PPOs; Blue Cross/Blue Shield; Employer-sponsored plans; Government.
Types of Accident & Health (A&H) providers
Medicaid/Medi-Cal
Types of Insurers (by domicile)
Key Employee policy
29. 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.
Reinsurance
Dividend options
Return of Cash Value rider
Permanent vs. Temporary disability
30. 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.
Medicare Part A & B "Gaps"
Rescission
Valid life insurance contracts must identify...
Waiver of Premium (Waiver of Cost of Insurance) rider
31. Treating or mitigating loss exposures through 1: avoidance; 2: retention (deductibles); 3: sharing; 4: reduction; or 5: transfer.
Risk management
Types of Insurers (miscellaneous)
Health Reimbursement Account (HRA)
Waiver of Premium provision
32. Part of IRS Section 125 cafeteria plan - which allows pre-tax payroll deductions for qualified medical expenses or child/dependent care.
Medicare Part A (aka Hospital Insurance or HI)
Waiver of Premium provision
Flexible Spending Account (FSA)
Types of Insurers (by authorization)
33. Responsible adult trustee designated to manage death benefits for minor child beneficiary until adulthood.
Trusts
Annuity Classifications (5 of 5): # of lives
Relation of Earnings to Insurance provision
Business Continuation (aka Buy-Sell) Disability policy
34. Prepaid med. benefits for members ONLY w/ approved primary care M.D. (HMO employee); focus on preventative care; low co-pay.
Endowment Life policy
Accidental Death (aka Multiple Indemnity) rider
Health Maintenance Organization (HMO)
Types of Insurers (by authorization)
35. Specialized policy covering diagnostic & preventative dental care; often no deductible; co-insurance; expensive; may be included w/ medical plan.
Employer Liability
Dental Plan
Proof of Loss provision
Life insurance policy
36. Domestic - within home state; Foreign - outside home state; Alien - outside home country.
Endowment Life policy
Parole Pardon Rule
Types of Insurers (by domicile)
Rehabilitation rider
37. Savings account for medical expenses; Tax-deductible contributions; tax-deferred growth; tax-free for qualified use; taxable for non-qualified use.
Reinsurance
Medical Savings Account (MSA) & Health Savings Account (HSA)
Civil Rights/Pregnancy Discrimination Act
Common Disability Exclusions
38. Covers disabilities occurring both "on" AND "off" job; "on" job benefits paid in addition to work. comp. - if applicable (i.e. individual plan).
Occupational Disability policy
Annuity Classifications (1 of 5): How premium is paid
Permanent vs. Temporary disability
24 Hour Coverage (CA)
39. Partially state-funded benefits for low-income people whereby cost of care is shared between state & recipient - based on income.
Insurable interest
Types of Insurers (miscellaneous)
Medi-Cal Share Cost plan
Dividends
40. 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.
Convertibility provision
Preferred Provider Organization (PPO)
Family policy
Settlement options for Life policy (1 of 2)
41. Fixed premium w/ guaranteed min. death benefit that may increase due to higher than expected investment returns.
IRS Penalties for Annuities
Variable Life policy (2 of 2)
Accidental Death & Dismemberment (AD&D) Disability rider
Common Disaster (Simultaneous Death Act) clause/provision
42. 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.
Needs approach (most common)
Free Look provision
Long Term Care (LTC) policy
Types of Accident & Health insurance
43. No-charge annuity w/drawals allowed up to 10% of total - THEN penalized on sliding scale based on # policy yrs.; conditionally waived.
Approval Type Conditional receipt
Survivorship (aka "Last to die") policy
Point of Service plan
Annuity surrender charges
44. Allows for use of HMO/PPO or other private carrier to provide expanded benefits @ additional premium & if enrolled in BOTH Parts A & B.
Universal (aka Flexible Premium Adjustable) Life policy (4 of 4)
Annuity Classifications (4 of 5): Disposition "pay-out" of proceeds
Medicare Part C (aka Medicare Advantage)
Guaranteed Insurability (aka Additional Purchase or Future Increase) Disability rider
45. Same as WL but policy owner can adjust death benefit w/ corresponding premium adjustments; mostly obsolete.
Indemnify
Dividend options
Common Disaster (Simultaneous Death Act) clause/provision
Adjustable Whole Life policy
46. Same as Term Life but provides living benefit (endowment) to policy owner if Insured survives entire term.
Return of Premium rider
Employer-Administered plan
Endowment Life policy
Elimination (aka Waiting) period
47. PURELY employer-funded account to reimburse employees for qualified medical expenses not covered by group health plan.
Health Reimbursement Account (HRA)
Retrocession
Law of Large Numbers
Key Employee policy
48. Upon death - death benefit is paid + the aggregate of premiums paid to date; add-on to Term policy ONLY.
CHAMPUS (aka TriCare)
Elements to contract
Primary Insurance Amount (PIA)
Return of Premium rider
49. Pure risk involves chance of loss ONLY (accident or misfortune). Speculative risk involves chance of loss OR gain (gambling - stock investment).
Non-forfeiture options for WL policy
Pure risk vs. Speculative risk
Revocable vs. Irrevocable beneficiary
Variable Life policy (1 of 2)
50. Written contract that provides INCOME @ high interest rate for fixed period OR for annuitant's lifetime w/ possible death benefit.
Reinsurance
Social Security (aka Old Age Survivors Disability Health Insurance or OASDHI)
Annuity
Loss of Earnings Test