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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. War/Military; Intentional self-inflicted; Aviation (non-commercial); Foreign country; Loss of professional license; Illegal activity; Mental disorders (after 1-2 yrs.).
Equity Index Whole Life policy
Workers' Compensation insurance
Common Disability Exclusions
Free Look provision
2. Combination of Basic Medical & Major Medical in one policy; Basic pays 1st - then Major Medical w/ corridor deductible.
Comprehensive Major Medical plan
Current Assumption (aka Interest-Sensitive) Whole Life policy
Point of Service plan
Retrocession
3. 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
Annuity Classifications (4 of 5): Disposition "pay-out" of proceeds
Errors & Omissions (E&O)
Estoppel
Supplemental Major Medical plan
4. Covers disabilities occurring ONLY "off" job; benefits do not overlap work. comp. (i.e. Group plan).
Common Accident provision
Non-Occupational Disability policy
Health Insurance Portability and Accountability Act (HIPAA)
Long Term Care (LTC) policy
5. The state in which the contract is accepted or delivered is the state that possesses regulatory jurisdiction over Group plan.
Modified Endowment Contract (MEC)
Beneficiary provisions
Credit Life policy
Doctrine of Comity
6. Voiding an insurance contract based on fraud - concealment or material misrepresentation; premiums returned; policy treated as never existing.
Rescission
Settlement options for Life policy (2 of 2)
Tax implications of Death Benefit & Cash Value
Trial Application (aka Request for Offer)
7. Info already known; Info that should have been known; Waived info; Irrelevant info.
Enhanced Ordinary (aka Extraordinary) Whole Life policy
Variable Life policy (2 of 2)
Concealment exceptions
Dividends
8. Federal law which allows health coverage portability when changing jobs - so long as previous coverage was in effect 63+ days; allows some tax deductibility for LTC.
Payment of Premium provision
Health Insurance Portability and Accountability Act (HIPAA)
Dental Plan
Types of Insurers (by sector)
9. Intentional deception; grounds for rescission.
Accidental Death & Dismemberment (AD&D) Disability rider
Fraud
Proof of Loss provision
Social Security (aka Old Age Survivors Disability Health Insurance or OASDHI)
10. Same as WL but premium low for 1st 5 yrs. - THEN has annual premium increases for set # yrs. - THEN level premium.
Presumptive disability
Graded Premium Whole Life policy
Dread Disease policy
Reinstatement provision
11. Written contract to transfer risk of premature death from one party to another; pays stated sum upon death; creates instant estate.
Employer-Administered plan
Variable Life policy (1 of 2)
Life insurance policy
Change of Occupation provision
12. Receipt whereby coverage incepts conditionally upon submission of full consideration and that all underwriting reqs. are met.
Insurability Type Conditional receipt
CA Work. Comp. Statutes
Annuity Classifications (3 of 5): Source of income
Policy delivery
13. 'The inability to perform ANY gainful occupation'.
Total disability (any-occupational definition)
CA Work. Comp. Statutes
Employer-Administered plan
Occupational Disability policy
14. Provides usual & customary business expenses (rent - utilities - salaries - mortgage) if owner becomes disabled; premiums deductible - benefits taxable.
Business Overhead Expense (BOE) Disability policy
Rescission
Social Security (aka Old Age Survivors Disability Health Insurance or OASDHI)
Consolidated Omnibus Budget Reconciliation Act (COBRA)
15. 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)
Medicare
Social Security Benefit (Supplement) rider
Mortality vs. Morbidity tables
16. Actual/Expressed - written powers; Implied - unwritten but customary practices; Apparent - perceived powers.
Types of Agency Authority
Modified Endowment Contract (MEC)
Transplant/Cosmetic Surgery rider
Experience vs. Community rating in Group Health plan
17. 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
Types of Accident & Health (A&H) providers
Return of Premium rider
Dental Plan
18. Allows for Term policy renewal @ higher premium w/out medical exam; guarantees insurability; based on actual/attained age.
Renewability provision
Loss exposure
Medicare
Misstatement of Age/Sex provision
19. Upon notice - Insurer must provide Claim Form (Proof of Loss Form) to Insured w/in 15 days.
Doctrine of Comity
Major Medical plan
Equity Index Whole Life policy
Claim Form (aka Proof of Loss Form) provision
20. Same as Term Life but provides living benefit (endowment) to policy owner if Insured survives entire term.
Disability Income policy
Graded Premium Whole Life policy
Endowment Life policy
Permanent vs. Temporary disability
21. Federally-sponsored health care for individuals 65+ &/or w/ certain disabilities; may run concurrent w/ group plan but group plan would act primary - THEN Medicare.
Medicare
Types of Insurers (by domicile)
Medicare Part B (aka Supplemental Medical Insurance or SMI)
Incontestability clause/provision
22. Multiple small employers w/ common affiliation (trade assoc. OR Chamber of Commerce) band together to purchase group plan.
Multiple Employer Trust (MET) aka Multiple Employer Welfare Association (MEWA)
Errors & Omissions (E&O)
Loss exposure
Blue Cross/Blue Shield
23. Mathematical law stating the larger # of occurrences - the more predictable the losses; used to calculate premiums.
Indemnify
Settlement options for Life policy (2 of 2)
Employer Liability
Law of Large Numbers
24. Commercial (private) companies; HMOs; PPOs; Blue Cross/Blue Shield; Employer-sponsored plans; Government.
Term Life policy
Types of Accident & Health (A&H) providers
Major Medical plan
Medical Savings Account (MSA) & Health Savings Account (HSA)
25. Process which prevents claim denial as a result of false statement or promise (made by Insurer) - which was relied upon by Insured.
Key Employee Disability policy
Dread Disease policy
Estoppel
Adjustable Whole Life policy
26. Beneficiary has right to leave death benefits / Insurer to protect $ from creditors; interest (taxable) paid on retained funds.
Dividend options
Modified Premium Whole Life policy
Spendthrift provision
Consolidated Omnibus Budget Reconciliation Act (COBRA)
27. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)
Applicant Representations vs. Warranties
Dividend options
Annuity Classifications (1 of 5): How premium is paid
Notice of Claim provision
28. Death benefit determined by Insured's projected lost earnings potential.
Applicant Representations vs. Warranties
Common Accident provision
Dependent coverage
Human Life Value approach
29. 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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30. Time period preceding each disability during which benefits are not paid; longer elimination periods = cheaper premium.
Proof of Loss provision
Valid life insurance contracts must identify...
Elimination (aka Waiting) period
Non-forfeiture options for WL policy
31. Domestic - within home state; Foreign - outside home state; Alien - outside home country.
Levels of Long Term Care provided
Types of Insurers (by domicile)
Automatic Premium Loan (APL) provision
Life insurance policy
32. Same as WL but w/ adjustable death benefit (& corresponding premium) & over-fund option but w/ annually renewable term (ART).
Medicare Part D
Medicare Supplement or Medigap policy
Universal (aka Flexible Premium Adjustable) Life policy (1 of 4)
Single Pay Whole Life policy
33. Provides accidental death benefit @ full $ of "principal sum". Dismemberment is paid only @ 50% principal sum ("capital sum").
Human Life Value approach
Total disability (more restrictive definition)
Accidental Death & Dismemberment (AD&D) Life policy
Limited Pay Whole Life policy
34. Privately-sold policies to provide benefits not covered by Medicare; divided into 12 plans listed alphabetically A - L; 30-day free look; guaranteed renewable.
Dread Disease policy
Exclusions to Work. Comp.
Medicare Supplement or Medigap policy
Point of Service plan
35. Death benefits & premium automatically increase annually based on inflationary index (i.e. Consumer Price Index).
Requirements to sell variable life products
Cost of Living Adjustment (COLA) Disability rider
Cost of Living Adjustment (COLA) Life rider
Medicare Part D
36. 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)
Residual disability rider
Multiple Employer Trust (MET) aka Multiple Employer Welfare Association (MEWA)
Term Life policy
37. A&H - A&S - Sickness only; Medical; Disability; Accident only; Travel accident; LTC; Medicare supplement; AD&D; Dental/Vision/Prescription; Limited.
Revocable vs. Irrevocable beneficiary
Types of Accident & Health insurance
Tax implications of an Estate
Guaranteed Insurability Life rider
38. Same as WL but w/ Level Term rider; upon death - pays monthly income for FULL term AFTER which pays full death benefit.
Policy loans
Family Maintenance policy
Cost of Living Adjustment (COLA) Life rider
Human Life Value approach
39. Policy owner must notify Insurer of loss either in writing - in person or by phone w/in 20 days.
Notice of Claim provision
Concealment
Types of Medical Plans
Waiver of Premium (Waiver of Cost of Insurance) rider
40. Fraternal - non-profit - members only; Reciprocal - unincorp'd org. - members insure each other; Lloyd's Assoc. - groups sharing risks; Surplus lines - special market risks.
Underwriting risk categories
Types of Insurers (miscellaneous)
Trial Application (aka Request for Offer)
Credit Life policy
41. Same as WL but cash value increases @ current interest rates (not set); premium can start low or high & may change.
Adjustable Whole Life policy
Common Accident provision
Medicare Part A (aka Hospital Insurance or HI)
Current Assumption (aka Interest-Sensitive) Whole Life policy
42. Authorized (admitted) - can conduct business in state; Unauthorized (non-admitted) - cannot conduct business in state (w/ one exception).
Factors that determine premium
Plans A-L of Medical Supplement or Medigap
Types of Insurers (by authorization)
Entire Contract provision
43. Excludes coverage for specific injury/illness either temporarily or permanently in order to eliminate pre-existing condition.
Impairment (Exclusion) rider
Return of Premium rider
Insurer (as defined by CIC)
Types of hazards
44. Disability income is based on "earned income" (salary - bonus - commission) - not unearned income (interest - investment - rents).
Phases of an annuity
Loss of Earnings Test
Market Value Adjusted (aka Modified Guaranteed) annuity
Reinsurance
45. War - 2 types; Suicide (1st 2 yrs.); Aviation (non-commercial); Hazardous hobbies; Criminal acts; Alcohol/Drug influenced.
Cost of Living Adjustment (COLA) Disability rider
Types of Insurers (miscellaneous)
Common Life Exclusions
Common Disability Exclusions
46. 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
Renewability provision
Guaranteed Insurability Life rider
Annuity Classifications (4 of 5): Disposition "pay-out" of proceeds
Exclusions to Work. Comp.
47. Specialized policy covering diagnostic & preventative dental care; often no deductible; co-insurance; expensive; may be included w/ medical plan.
Dental Plan
Credit Life policy
Waiver of Premium (Waiver of Cost of Insurance) rider
Universal (aka Flexible Premium Adjustable) Life policy (4 of 4)
48. Unintentional - up to $1 -000 + legal $; Intentional - $1 -000-5 -000 + legal $; If harmful - misdemeanor + up to 1 yr. prison + up to $10 -000.
Considerations in replacing Health insurance
Penalties for violating AIDS/HIV privacy laws
Proof of Loss provision
Incontestability clause/provision
49. Compensates business for loss due to death or disability of key employee; premiums not deductible but benefits tax-free.
Disability Income policy
Key Employee policy
Types of Licensed Producers
Medicaid/Medi-Cal
50. 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.
Transplant/Cosmetic Surgery rider
1035 Exchange
Cross Purchase Plan
Legal Action provision