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. Death benefit determined by Insured's financial goals & needs (minus assets).
Insuring clause/provision (aka Insuring Agreement)
Modified Endowment Contract (MEC)
Limited Pay Whole Life policy
Needs approach (most common)
2. WL policy covering 2 or more Insureds but payable upon death of FIRST Insured - after which policy ends.
Premium modes
Notice of Claim provision
Joint Life (aka "First to die") policy
Waiver of Premium (Waiver of Cost of Insurance) rider
3. Representation - oral or written statement made to best of knowledge or belief; Warranty - statement guaranteed/presumed/understood to be true.
Applicant Representations vs. Warranties
Life insurance policy
Types of Renewability provisions
Social Security Benefit (Supplement) rider
4. Basic Medical; Major Medical; Comprehensive Major Medical
Presumptive disability
24 Hour Coverage (CA)
1035 Exchange
Types of Medical Plans
5. Treating or mitigating loss exposures through 1: avoidance; 2: retention (deductibles); 3: sharing; 4: reduction; or 5: transfer.
Mortality vs. Morbidity tables
Accidental Death & Dismemberment (AD&D) Life policy
Risk management
Key Employee policy
6. Provides professional services - rehabilitation - training/re-training & related costs to assist Insured in returning to work.
Rehabilitation rider
Departments of an Insurer
Peril vs. Hazard
Cost of Living Adjustment (COLA) Life rider
7. 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.
Exclusions to Work. Comp.
Partial disability rider
Automatic Premium Loan (APL) provision
Renewability provision
8. War; elective cosmetic surgery; routine dental; work. comp.-covered claims; self-inflicted (intentional); gov't. facility treatment; LTC; private nursing.
Single Pay Whole Life policy
Exclusions for Major Medical plan
Annuity Classifications (2 of 5): When benefits begin
Dread Disease policy
9. If Insured & primary beneficiary die due to same act (w/in 14 days) - primary assumed 1st to die & contingent beneficiary paid death benefit.
Enhanced Ordinary (aka Extraordinary) Whole Life policy
Modified Endowment Contract (MEC)
Occupational Disability policy
Common Disaster (Simultaneous Death Act) clause/provision
10. Provides benefit during Social Security "black-out" period - up to 1 yr.
Annuity Classifications (4 of 5): Disposition "pay-out" of proceeds
Needs approach (most common)
Social Security Benefit (Supplement) rider
Family or Dependents rider
11. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.
Levels of Long Term Care provided
Change of Occupation provision
Common Disaster (Simultaneous Death Act) clause/provision
Key Employee policy
12. Mathematical law stating the larger # of occurrences - the more predictable the losses; used to calculate premiums.
Underwriting risk categories
Transplant/Cosmetic Surgery rider
Law of Large Numbers
24 Hour Coverage (CA)
13. Same as WL but cash value put in investment vehicles chosen by policy owner (stocks - bonds - munis.); cash value NOT guaranteed.
Occupational Disability policy
Health Insurance Portability and Accountability Act (HIPAA)
Recurrent disability clause/provision
Variable Life policy (1 of 2)
14. Waives premium on Life policy for minor child until age 21 in event premium payor dies or becomes disabled.
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
15. Potential circumstance that could cause a loss; measured in dollars.
Insurer (as defined by CIC)
Loss exposure
Estoppel
Non-forfeiture options for WL policy
16. Benefits automatically increase annually based on inflationary index (i.e. Consumer Price Index) OR flat rate (5% max.).
Cost of Living Adjustment (COLA) Disability rider
Proof of Loss provision
Dread Disease policy
Valid life insurance contracts must identify...
17. Provides hospital insurance automatically @ age 65 (if FICA qualified) @ no fee but may have deductible & co-pay.
Medicare Supplement or Medigap policy
Medicare
Medicare Part A (aka Hospital Insurance or HI)
Universal (aka Flexible Premium Adjustable) Life policy (4 of 4)
18. Part A - Inpatient hospital deductibles vary on # of days; limited reserve days; finite benefit; 1st 3 pints blood; Part B - 20% co-payment.
Current Assumption (aka Interest-Sensitive) Whole Life policy
Medicare Part A & B "Gaps"
24 Hour Coverage (CA)
Term Life policy
19. Same as WL but policy owner can adjust death benefit w/ corresponding premium adjustments; mostly obsolete.
Tax implications of Death Benefit & Cash Value
Endowment Life policy
Adjustable Whole Life policy
Law of Large Numbers
20. Revocable - changeable anytime w/ Change of Beneficiary Form; Irrevocable - not changeable w/out beneficiary permission.
Common Accident provision
Medical cost containment (aka Managed care)
Concealment exceptions
Revocable vs. Irrevocable beneficiary
21. Written policy terms supersede oral statements made prior to policy issue.
Tax implications of Disability policy
Parole Pardon Rule
Medicaid/Medi-Cal
Payor (aka Waiver of Payor's Premium) rider
22. Covers entire family w/ WL for breadwinner & (convertible) Level Term for spouse & children (until certain age).
Family policy
Adjustable Whole Life policy
Impairment (Exclusion) rider
Dividend options
23. Qualified Annuity - Tax-deductible contributions & tax-deferred growth but fully taxable w/drawals.
Permanent vs. Temporary disability
Rescission
Incontestability clause/provision
Tax implications of an Annuity (1 of 2)
24. Funding mechanism whereby employer & employee share cost of premium. Upon death - benefit is shared between employer & beneficiary.
Phases of an annuity
Human Life Value approach
Trusts
Split Dollar Plan
25. 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.
Common Disaster (Simultaneous Death Act) clause/provision
Current Assumption (aka Interest-Sensitive) Whole Life policy
Dividend options
Medicare Part A & B "Gaps"
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.
Presumptive disability
Suicide clause/provision
Penalties for violating AIDS/HIV privacy laws
Preferred Provider Organization (PPO)
27. Provides accidental death benefit @ full $ of "principal sum". Dismemberment is paid only @ 50% principal sum ("capital sum").
Elements to contract
Universal (aka Flexible Premium Adjustable) Life policy (3 of 4)
Risk management
Accidental Death & Dismemberment (AD&D) Disability rider
28. Physical - slippery floor; Moral - dishonest acts; Morale - carelessness or recklessness.
Universal (aka Flexible Premium Adjustable) Life policy (1 of 4)
Payor (aka Waiver of Payor's Premium) rider
Types of hazards
Employer-Administered plan
29. No deductible coverage for: daily room/board; ancillary costs; surgeon &/or physician expense (for added premium).
Basic Medical plan
Guaranteed Insurability Life rider
Factors that determine premium
Fraud
30. Commercial (private) companies; HMOs; PPOs; Blue Cross/Blue Shield; Employer-sponsored plans; Government.
Types of Accident & Health (A&H) providers
Concealment exceptions
Grace Period provision
Dread Disease policy
31. Federally-funded but state-run program for truly indigent individuals & families providing medical care at Federal clinic.
Factors that determine premium
Medicaid/Medi-Cal
Plans A-L of Medical Supplement or Medigap
Viatical Settlement Provider (VSP)
32. Financial interest in insured party that must exist @ time of application OR policy issuance. Requires consent (except minors).
Medicaid/Medi-Cal
Insurable interest
Annuity Classifications (5 of 5): # of lives
Proof of Loss provision
33. Excludes coverage for specific injury/illness either temporarily or permanently in order to eliminate pre-existing condition.
Common Accident provision
Impairment (Exclusion) rider
Limited Pay Whole Life policy
Recurrent disability clause/provision
34. Same as WL but death benefit increases annually - linked to Consumer Price Index; premium increases annually OR is set high from start.
Cost of Living Adjustment (COLA) Life rider
Dividends
Equity Index Whole Life policy
Viatical Settlement Provider (VSP)
35. 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
7 Pay Test
Cross Purchase Plan
Entire Contract provision
36. Same as WL but w/ Level Term rider; upon death - pays monthly income for FULL term AFTER which pays full death benefit.
Misstatement of Age/Sex provision
Mortality vs. Morbidity tables
Family Maintenance policy
Entire Contract provision
37. Application submitted w/out premium; no coverage until submission of full consideration & completed Statement of Continued Good Health.
Trial Application (aka Request for Offer)
CA Work. Comp. Statutes
Whole (aka Permanent or Straight) Life policy
Point of Service plan
38. Private sector (Commercial) - provides LA&H - P&C - & LTC; Public sector (Gov't) - provides flood - work. comp. - Medicare/Medicaid - Group Life (SGLI/FEGLI).
Variable Life policy (1 of 2)
Experience vs. Community rating in Group Health plan
Annuity Classifications (4 of 5): Disposition "pay-out" of proceeds
Types of Insurers (by sector)
39. Provides usual & customary business expenses (rent - utilities - salaries - mortgage) if owner becomes disabled; premiums deductible - benefits taxable.
Blue Cross/Blue Shield
Payor (aka Waiver of Payor's Premium) rider
Business Overhead Expense (BOE) Disability policy
Loss exposure
40. To "make whole again" w/out benefit or detriment; neither monetary profit nor loss.
Indemnify
Experience vs. Community rating in Group Health plan
24 Hour Coverage (CA)
Departments of an Insurer
41. 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
Age Discrimination in Employment Act (ADEA)
Health Reimbursement Account (HRA)
Legal Action provision
42. Dividends are NOT taxable but interest is. Loan interest is NOT tax-deductible. Interest paid by Insurer on retained funds is taxable.
Annuity surrender charges
Transplant/Cosmetic Surgery rider
Concealment
Tax implications of Dividends - Loans & Interest
43. Periodic return of premium to policy owners from Mutual (Par) Companies; not guaranteed & not taxable as income; may be used in 6 ways.
Dividends
Universal (aka Flexible Premium Adjustable) Life policy (4 of 4)
Misstatement of Age/Sex provision
Single Pay Whole Life policy
44. The state in which the contract is accepted or delivered is the state that possesses regulatory jurisdiction over Group plan.
Experience vs. Community rating in Group Health plan
Doctrine of Comity
Requirements to sell variable life products
Rate (as defined by CIC)
45. 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.
Premium modes
Penalties for violating AIDS/HIV privacy laws
Health Insurance Portability and Accountability Act (HIPAA)
Fraud
46. Identical to Incontestable Clause in Life policy.
Medicare Supplement or Medigap policy
Time Limit on Certain Defenses provision
Cross Purchase Plan
Indeterminate Premium Whole Life policy
47. 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
Common Life Exclusions
Employer Liability
Rehabilitation rider
48. Written contract that provides INCOME @ high interest rate for fixed period OR for annuitant's lifetime w/ possible death benefit.
7 Pay Test
Estoppel
Concealment
Annuity
49. 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).
Dread Disease policy
Limited Pay Whole Life policy
Exclusions for Major Medical plan
Policy loans
50. Unilateral - Insurer provides contract; Adhesion - parties must adhere to terms; Aleatory - benefits may not inure equally.
Insurance contract characteristics (1 of 2)
Blue Cross/Blue Shield
Transplant/Cosmetic Surgery rider
Medicare Part A & B "Gaps"