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. Provides accidental death benefit @ full $ of "principal sum". Dismemberment is paid only @ 50% principal sum ("capital sum").
Reinsurance
Types of Accident & Health insurance
Accidental Death & Dismemberment (AD&D) Disability rider
Types of Medical Plans
2. Permanent disability due to total loss of sight - hearing - speech or use of 2 + limbs; benefits paid even while continuing to work.
Total disability (as commonly defined)
Presumptive disability
Basic Medical plan
Whole (aka Permanent or Straight) Life policy
3. Privately-provided or Medicare-provided (if no private carrier) prescription drug plans for qualified individuals but w/ premium - deductible & co-pay.
Tax implications of medical plans
Civil Rights/Pregnancy Discrimination Act
Tax implications of an Estate
Medicare Part D
4. No-cost provision that authorizes Insurer to borrow from cash value to pay unpaid premiums after grace period; must ask for @ app. time.
Automatic Premium Loan (APL) provision
Key Employee policy
AIDS/HIV discrimination
Types of Insurers (by sector)
5. Hybrid of HMO & PPO w/ greater flexibility on choosing specialists outside network w/ benefits still provided but @ higher co-pay.
Point of Service plan
Partial disability rider
Tax implications of medical plans
Employee Retirement Income Security Act (ERISA)
6. 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.
Health Maintenance Organization (HMO)
Partial disability rider
Types of Insurers (by authorization)
Accidental Death & Dismemberment (AD&D) Life policy
7. Covers disabilities occurring ONLY "off" job; benefits do not overlap work. comp. (i.e. Group plan).
Types of reinsurance
Non-Occupational Disability policy
Phases of an annuity
Time Limit on Certain Defenses provision
8. Basic Medical; Major Medical; Comprehensive Major Medical
Guaranteed Insurability (aka Additional Purchase or Future Increase) Disability rider
Employer-Administered plan
Mortality vs. Morbidity tables
Types of Medical Plans
9. Same as WL but death benefit increases annually - linked to Consumer Price Index; premium increases annually OR is set high from start.
Universal (aka Flexible Premium Adjustable) Life policy (1 of 4)
Notice of Claim provision
Equity Index Whole Life policy
Estoppel
10. Dependent children are covered until 19 or 23 (full-time student only) or until self-sufficient (if handicapped).
Impairment (Exclusion) rider
Dependent coverage
Disability Income policy
Types of Accident & Health (A&H) providers
11. Process whereby a reinsurer reinsures w/ another reinsurer.
Retrocession
Law of Large Numbers
Medicaid/Medi-Cal
Dividends
12. Authorized (admitted) - can conduct business in state; Unauthorized (non-admitted) - cannot conduct business in state (w/ one exception).
Waiver of Premium provision
Key Employee policy
Types of Insurers (by authorization)
Medicare Part D
13. 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
14. Monthly; Quarterly; Semi-annually; Annually (cheapest due to less admin cost).
Employer Liability
Premium modes
Market Value Adjusted (aka Modified Guaranteed) annuity
Common Disability Exclusions
15. Receipt whereby coverage incepts ONLY after underwriting approval.
Approval Type Conditional receipt
Medicare
Modified Premium Whole Life policy
Settlement options for Life policy (2 of 2)
16. Provides 24 hr. health coverage both "on" & "off" job - but may cause coverage duplication & coordination challenges.
Medicare Part C (aka Medicare Advantage)
24 Hour Coverage (CA)
Social Security Benefit (Supplement) rider
Tax implications of Disability policy
17. Level - fixed death benefit - premium fixed until renewal; Decreasing - death benefit decreases over term - premium fixed until renewal; Increasing - death benefit increases over term - premium fixed until renewal.
Blackout Period
Occupational Disability policy
Tax implications of an Annuity (1 of 2)
Types of Term Life policies
18. 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.
Tax implications of an Estate
Retrocession
Tax implications of Disability policy
Misstatement of Age/Sex provision
19. Death benefit is NOT taxable. Cash value grows tax-deferred but cost basis (base premium) is not taxable - only interest is.
Tax implications of Death Benefit & Cash Value
Elimination (aka Waiting) period
Levels of Long Term Care provided
Factors that determine premium
20. 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.
Market Value Adjusted (aka Modified Guaranteed) annuity
Consolidated Omnibus Budget Reconciliation Act (COBRA)
Types of Accident & Health (A&H) providers
Term Life policy
21. Potential circumstance that could cause a loss; measured in dollars.
Exclusions to Work. Comp.
Business Continuation (aka Buy-Sell) Disability policy
Trial Application (aka Request for Offer)
Loss exposure
22. Mathematical law stating the larger # of occurrences - the more predictable the losses; used to calculate premiums.
Law of Large Numbers
Annuity Classifications (2 of 5): When benefits begin
Modified Premium Whole Life policy
Concealment exceptions
23. Policy owner has 90 days from date of loss to submit proof of loss to Insurer; valid claim must be paid immediately upon receipt.
Universal (aka Flexible Premium Adjustable) Life policy (3 of 4)
Proof of Loss provision
Long Term Care (LTC) policy
Whole (aka Permanent or Straight) Life policy
24. Intentional deception; grounds for rescission.
Employee Retirement Income Security Act (ERISA)
Exclusions for Major Medical plan
Variable Life policy (2 of 2)
Fraud
25. Federal program financed by payroll taxes provided equally by both employer & employee OR entirely by individual (if self-employed). Provides benefits for: Medicare @ age 65+; retirement; $255 lump sum death benefit; (limited) disability; survivors;
Social Security (aka Old Age Survivors Disability Health Insurance or OASDHI)
Accelerated Benefits (aka Terminal Illness or Living Benefits) rider
Concealment exceptions
Retrocession
26. Prepaid med. benefits for members w/ approved primary care M.D. (independent); low co-pay; non-PPO M.D. can be used at higher cost.
Consolidated Omnibus Budget Reconciliation Act (COBRA)
Accidental Death (aka Multiple Indemnity) rider
Preferred Provider Organization (PPO)
Medical cost containment (aka Managed care)
27. 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.
Long Term Care (LTC) policy
Accidental Death & Dismemberment (AD&D) Disability rider
Key Employee policy
Juvenile Life (aka Jumping Juvenile) policy
28. Periodic return of premium to policy owners from Mutual (Par) Companies; not guaranteed & not taxable as income; may be used in 6 ways.
Claim Form (aka Proof of Loss Form) provision
Dividends
Workers' Compensation insurance
Annuity
29. Dividends are NOT taxable but interest is. Loan interest is NOT tax-deductible. Interest paid by Insurer on retained funds is taxable.
Non-Occupational Disability policy
Tax implications of Dividends - Loans & Interest
Variable Life policy (1 of 2)
Automatic Premium Loan (APL) provision
30. Federally-funded but state-run program for truly indigent individuals & families providing medical care at Federal clinic.
Medicaid/Medi-Cal
Types of Accident & Health insurance
Market Value Adjusted (aka Modified Guaranteed) annuity
Incontestability clause/provision
31. Insurer has right to adjust (+ or -) death benefit if age or sex is misstated but normally doesn't void policy.
Misstatement of Age/Sex provision
Medical Savings Account (MSA) & Health Savings Account (HSA)
Key Employee policy
Dental Plan
32. Allows policy owner to w/draw set % of death benefit upon verification of terminal illness w/ expectancy 12-24 mths.; generally tax-free.
Incontestability clause/provision
Needs approach (most common)
Accelerated Benefits (aka Terminal Illness or Living Benefits) rider
Common Accident provision
33. Type of partial disability rider - which pays fluctuating % of lost income w/out time limit.
Indemnify
Trusts
Residual disability rider
Payor (aka Waiver of Payor's Premium) rider
34. Any person - assoc. - org. - partnership - business trust - LLC - or corp. capable of making an insurance contract.
Key Employee Disability policy
Insurer (as defined by CIC)
Medical cost containment (aka Managed care)
Common Disaster (Simultaneous Death Act) clause/provision
35. Partially state-funded benefits for low-income people whereby cost of care is shared between state & recipient - based on income.
Palliative vs. Curative care
Medi-Cal Share Cost plan
Civil Rights/Pregnancy Discrimination Act
Rescission
36. Underwriting - determines insurability; Marketing/Sales - determines products; Actuarial - determines rates; Claims - investigates/pays claims.
Whole (aka Permanent or Straight) Life policy
Departments of an Insurer
Waiver of Premium (Waiver of Cost of Insurance) rider
Adverse selection
37. No-charge annuity w/drawals allowed up to 10% of total - THEN penalized on sliding scale based on # policy yrs.; conditionally waived.
Annuity surrender charges
Equity Index Whole Life policy
Tax implications of an Annuity (1 of 2)
Indemnify
38. 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 (miscellaneous)
Departments of an Insurer
Family Income policy
Concealment
39. Allows Insured to increase benefit w/out medical exam (subject to age max.) w/ additional premium rate determined @ attained age; must prove income increase.
Law of Large Numbers
Variable Life policy (1 of 2)
Guaranteed Insurability (aka Additional Purchase or Future Increase) Disability rider
Occupational Disability policy
40. Palliative - treatment to manage pain; Curative - treatment to cure illness/condition.
1035 Exchange
Tax implications of medical plans
Tax implications of an Annuity (1 of 2)
Palliative vs. Curative care
41. 1: Non-cancelable; 2: Guaranteed renewable; 3: Cancelable; 4: Conditionally renewable; 5: Optionally renewable.
Annuity Classifications (1 of 5): How premium is paid
Types of Renewability provisions
Types of Insurers (miscellaneous)
Types of Insurers (by sector)
42. Provides hospital insurance automatically @ age 65 (if FICA qualified) @ no fee but may have deductible & co-pay.
Experience vs. Community rating in Group Health plan
Spendthrift provision
Civil Rights/Pregnancy Discrimination Act
Medicare Part A (aka Hospital Insurance or HI)
43. Unintentional - up to $1 -000 + legal $; Intentional - $1 -000-5 -000 + legal $; If harmful - misdemeanor + up to 1 yr. prison + up to $10 -000.
Annuity surrender charges
Penalties for violating AIDS/HIV privacy laws
Policy delivery
Indeterminate Premium Whole Life policy
44. Physical - slippery floor; Moral - dishonest acts; Morale - carelessness or recklessness.
Types of hazards
1035 Exchange
Point of Service plan
Elements to contract
45. Term Life policy w/ decreasing death benefit; usually used to secure credit (loan) w/ lender as beneficiary & borrower as Insured.
Types of Renewability provisions
Credit Life policy
Parole Pardon Rule
Approval Type Conditional receipt
46. An attempt to contain costs by employing various strategies - including wellness programs - preventative testing - outpatient & alternative procedures.
Insurance contract characteristics (2 of 2)
Medical cost containment (aka Managed care)
Cash value
Policy loans
47. Waives premium on Life policy for minor child until age 21 in event premium payor dies or becomes disabled.
48. Same as WL but premium low for 1st 3-5 yrs. - THEN has one-time premium increase.
Types of Insurers (by ownership)
Modified Premium Whole Life policy
Single Pay Whole Life policy
Payor (aka Waiver of Payor's Premium) rider
49. Prepaid med. benefits for members ONLY w/ approved primary care M.D. (HMO employee); focus on preventative care; low co-pay.
Rate (as defined by CIC)
Legal Action provision
Health Maintenance Organization (HMO)
Types of reinsurance
50. Policyholders - Mutual (participating) co. - may pay dividends; Stockholders - Stock (non-participating) co. - no dividends.
Occupational Disability policy
Concealment
Types of Insurers (by ownership)
Juvenile Life (aka Jumping Juvenile) policy