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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. Provides accidental death benefit @ full $ of "principal sum". Dismemberment is paid only @ 50% principal sum ("capital sum").
Multiple Employer Trust (MET) aka Multiple Employer Welfare Association (MEWA)
Accidental Death & Dismemberment (AD&D) Disability rider
Medicare Part D
Insurable interest
2. No-charge annuity w/drawals allowed up to 10% of total - THEN penalized on sliding scale based on # policy yrs.; conditionally waived.
Dividends
Guaranteed Insurability Life rider
Annuity surrender charges
Insurance contract characteristics (2 of 2)
3. Provides disability income during surgery recovery from life-threatening condition (& sometimes cosmetic surgery).
Transplant/Cosmetic Surgery rider
Concealment exceptions
Presumptive disability
Free Look provision
4. Fraternal - non-profit - members only; Reciprocal - unincorp'd org. - members insure each other; Lloyd's Assoc. - groups sharing risks; Surplus lines - special market risks.
Common Disaster (Simultaneous Death Act) clause/provision
Types of Insurers (miscellaneous)
Types of Licensed Producers
Life insurance policy
5. Refund of 50-80% of premium (minus claims paid) every 5-10 yrs. OR age 65; expensive!
Types of Insurers (by domicile)
Juvenile Life (aka Jumping Juvenile) policy
Rate (as defined by CIC)
Return of Premium rider
6. Provides professional services - rehabilitation - training/re-training & related costs to assist Insured in returning to work.
Rehabilitation rider
Reinstatement provision
Preferred Provider Organization (PPO)
Estoppel
7. Facultative - case by case agreements; Automatic/Treaty - automatic acceptance of risk percentage per previous agreement.
COBRA Time Limitations
Types of reinsurance
CHAMPUS (aka TriCare)
Term Life policy
8. 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
Types of Insurers (by authorization)
Concealment
Policy loans
Exclusions to Work. Comp.
9. Conditional - coverage is conditional; Personal - parties are people; Good faith - honesty/integrity; Fiduciary - req's financial trust.
Phases of an annuity
Tax implications of an Annuity (1 of 2)
Insurance contract characteristics (2 of 2)
Types of Insurers (by domicile)
10. Same as WL but premium low for 1st 5 yrs. - THEN has annual premium increases for set # yrs. - THEN level premium.
Term Life policy
AIDS/HIV discrimination
Phases of an annuity
Graded Premium Whole Life policy
11. Waives premium on Life policy for minor child until age 21 in event premium payor dies or becomes disabled.
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12. Representation - oral or written statement made to best of knowledge or belief; Warranty - statement guaranteed/presumed/understood to be true.
Annuity Classifications (1 of 5): How premium is paid
Applicant Representations vs. Warranties
Employee Retirement Income Security Act (ERISA)
Annuity Classifications (2 of 5): When benefits begin
13. Authorized (admitted) - can conduct business in state; Unauthorized (non-admitted) - cannot conduct business in state (w/ one exception).
Annuity Classifications (1 of 5): How premium is paid
Civil Rights/Pregnancy Discrimination Act
Departments of an Insurer
Types of Insurers (by authorization)
14. Physical - slippery floor; Moral - dishonest acts; Morale - carelessness or recklessness.
Types of Insurers (by ownership)
Comprehensive Major Medical plan
Types of hazards
Universal (aka Flexible Premium Adjustable) Life policy (2 of 4)
15. 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
Time Limit on Certain Defenses provision
Insurance contract characteristics (2 of 2)
Considerations in replacing Health insurance
16. 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.
Total disability (any-occupational definition)
Suicide clause/provision
Adjustable Whole Life policy
CA Work. Comp. Statutes
17. 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.
Small Employer Medical Expense plan
Errors & Omissions (E&O)
Factors that determine premium
Tax implications of medical plans
18. Allows for use of HMO/PPO or other private carrier to provide expanded benefits @ additional premium & if enrolled in BOTH Parts A & B.
Viatical Settlement Provider (VSP)
Medicare Part C (aka Medicare Advantage)
Parole Pardon Rule
Rescission
19. Upon notice - Insurer must provide Claim Form (Proof of Loss Form) to Insured w/in 15 days.
Graded Premium Whole Life policy
Claim Form (aka Proof of Loss Form) provision
Exclusions for Major Medical plan
Return of Premium rider
20. Non-qualified Annuity - Non-deductible contributions & tax-deferred growth. At pay-out - tax-free principal but taxable growth.
Life insurance policy
Tax implications of an Annuity (1 of 2)
Annuity surrender charges
Social Security Benefit (Supplement) rider
21. Term Life policy w/ decreasing death benefit; usually used to secure credit (loan) w/ lender as beneficiary & borrower as Insured.
Credit Life policy
Major Medical plan
Medi-Cal Share Cost plan
Impairment (Exclusion) rider
22. Qualified Annuity - Tax-deductible contributions & tax-deferred growth but fully taxable w/drawals.
Legal Action provision
Types of hazards
Employee Retirement Income Security Act (ERISA)
Tax implications of an Annuity (1 of 2)
23. Savings account for medical expenses; Tax-deductible contributions; tax-deferred growth; tax-free for qualified use; taxable for non-qualified use.
Beneficiary provisions
Departments of an Insurer
Modified Premium Whole Life policy
Medical Savings Account (MSA) & Health Savings Account (HSA)
24. 4: Funds retained by Insurer until w/drawn - interest ONLY paid monthly (taxable); 5: Paid-up immediate annuity.
Loss exposure
Doctrine of Comity
Settlement options for Life policy (2 of 2)
Loss of Earnings Test
25. Same as WL but premium low for set # yrs. - THEN premiums vary (+ or -) based on Insurer's investment returns - w/ Gmax.
Premium modes
Consolidated Omnibus Budget Reconciliation Act (COBRA)
Convertibility provision
Indeterminate Premium Whole Life policy
26. Intentional OR unintentional failure to disclose material underwriting facts that should have been disclosed; grounds for policy rescission.
Settlement options for Life policy (1 of 2)
Concealment
Insurability Type Conditional receipt
Indemnify
27. Receipt whereby coverage incepts ONLY after underwriting approval.
Elements to contract
Approval Type Conditional receipt
Rehabilitation rider
Law of Large Numbers
28. Intentional deception; grounds for rescission.
7 Pay Test
Insurer (as defined by CIC)
Fraud
Point of Service plan
29. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)
Indeterminate Premium Whole Life policy
Waiver of Premium provision
Requirements to sell variable life products
Annuity Classifications (1 of 5): How premium is paid
30. Commercial (private) companies; HMOs; PPOs; Blue Cross/Blue Shield; Employer-sponsored plans; Government.
Types of Accident & Health (A&H) providers
Exclusions to Work. Comp.
Disability Income policy
Universal (aka Flexible Premium Adjustable) Life policy (2 of 4)
31. 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
Medicare Supplement or Medigap policy
Types of Insurers (by sector)
Partial disability rider
32. If Insured & primary beneficiary die due to same act (w/in 14 days) - primary assumed 1st to die & contingent beneficiary paid death benefit.
Return of Cash Value rider
Common Disaster (Simultaneous Death Act) clause/provision
Reinstatement provision
Accelerated Benefits (aka Terminal Illness or Living Benefits) rider
33. Benefits automatically increase annually based on inflationary index (i.e. Consumer Price Index) OR flat rate (5% max.).
Family or Dependents rider
Cost of Living Adjustment (COLA) Disability rider
Indemnify
Limited Pay Whole Life policy
34. 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
Reinstatement provision
Annuity Classifications (4 of 5): Disposition "pay-out" of proceeds
Equity Indexed annuity
Annuity surrender charges
35. Federal law which prohibits companies w/ 15+ employees from decreasing coverage benefits for women affected by pregnancy or childbirth.
Civil Rights/Pregnancy Discrimination Act
Conformity with State Statute provision
Survivorship (aka "Last to die") policy
Medicare Part C (aka Medicare Advantage)
36. Agents - represent Insurer; Brokers - represent themselves & Insured; Solicitors - represent one agent to solicit leads.
Family policy
Transplant/Cosmetic Surgery rider
Types of Licensed Producers
Types of Insurers (by authorization)
37. Extreme form of Limited Pay Whole Life whereby entire premium is paid in a single payment.
Adverse selection
Single Pay Whole Life policy
Permanent vs. Temporary disability
Premium modes
38. 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).
Enhanced Ordinary (aka Extraordinary) Whole Life policy
Errors & Omissions (E&O)
Approval Type Conditional receipt
Limited Pay Whole Life policy
39. Specialized policy covering diagnostic & preventative dental care; often no deductible; co-insurance; expensive; may be included w/ medical plan.
Total disability (as commonly defined)
Exclusions to Work. Comp.
Whole (aka Permanent or Straight) Life policy
Dental Plan
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
Limited Pay Whole Life policy
Comprehensive Major Medical plan
Key Employee policy
41. Peril is the CAUSE of loss. Hazard is a condition that increases LIKELIHOOD of loss.
Annuity Classifications (2 of 5): When benefits begin
Types of Licensed Producers
Peril vs. Hazard
Medicare Part D
42. Prepaid med. benefits for members ONLY w/ approved primary care M.D. (HMO employee); focus on preventative care; low co-pay.
Single Pay Whole Life policy
Employer Liability
Health Maintenance Organization (HMO)
Medicare Part D
43. 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.
24 Hour Coverage (CA)
Split Dollar Plan
Annuity Classifications (3 of 5): Source of income
Waiver of Premium provision
44. Domestic - within home state; Foreign - outside home state; Alien - outside home country.
Indeterminate Premium Whole Life policy
Reinsurance
Business Continuation (aka Buy-Sell) policy
Types of Insurers (by domicile)
45. Req. by CA statute & may provide workers coverage for action-over claims.
Employer Liability
Insurance contract characteristics (1 of 2)
Considerations in replacing Health insurance
Insurable interest
46. No deductible coverage for: daily room/board; ancillary costs; surgeon &/or physician expense (for added premium).
Levels of Long Term Care provided
Dependent coverage
Basic Medical plan
Partial disability rider
47. Federal law to protect Federal employees' (& their beneficiaries') pension - group insurance - & welfare benefits.
Major Medical plan
Policy delivery
Common Life Exclusions
Employee Retirement Income Security Act (ERISA)
48. Summary of coverage including premium & mode of payment - death benefit - beneficiary(ies) - exclusions - & promise to pay.
Accelerated Benefits (aka Terminal Illness or Living Benefits) rider
Presumptive disability
Endowment Life policy
Insuring clause/provision (aka Insuring Agreement)
49. 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.
Blackout Period
Tax implications of Disability policy
Dread Disease policy
Partial disability rider
50. Available for any reason up to full cash value @ fixed (max 8%) OR variable interest rate; loan $ + interest deducted from benefit @ death.
Policy loans
Tax implications of an Annuity (1 of 2)
Indemnify
Business Continuation (aka Buy-Sell) Disability policy