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Test your basic knowledge |
CA Life Agent Exam
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Subject
:
certifications
Instructions:
Answer 50 questions in 15 minutes.
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study here
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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. Generally 10 days after policy delivery to cancel policy w/ full refund - except 30 days for seniors or for replacement policies.
Exclusions for Major Medical plan
Free Look provision
Return of Cash Value rider
Insurability Type Conditional receipt
2. Upon death - death benefit is paid + the aggregate of premiums paid to date; add-on to Term policy ONLY.
Employer-Administered plan
Juvenile Life (aka Jumping Juvenile) policy
Age Discrimination in Employment Act (ADEA)
Return of Premium rider
3. Must be delivered in person or by certified - registered or 1st-class mail w/ signature - unless waived by Insurance Commissioner.
Common Disaster (Simultaneous Death Act) clause/provision
Law of Large Numbers
Dental Plan
Policy delivery
4. Same as Comprehensive Major Medical but w/ integrated deductible; much more expensive.
Approval Type Conditional receipt
Accidental Death & Dismemberment (AD&D) Life policy
Supplemental Major Medical plan
Revocable vs. Irrevocable beneficiary
5. 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
Exclusions to Work. Comp.
Dependent coverage
Indemnify
Time Limit on Certain Defenses provision
6. Annuity distributions prior to age 59 1/2 incur a 10% IRS penalty EXCEPT for death - disability - immediate annuity - or rollover.
Insurable interest
IRS Penalties for Annuities
Entire Contract provision
Limited Pay Whole Life policy
7. Privately-sold policies to provide benefits not covered by Medicare; divided into 12 plans listed alphabetically A - L; 30-day free look; guaranteed renewable.
Medicare Supplement or Medigap policy
Convertibility provision
Current Assumption (aka Interest-Sensitive) Whole Life policy
Limited Pay Whole Life policy
8. Policy owner has 90 days from date of loss to submit proof of loss to Insurer; valid claim must be paid immediately upon receipt.
Annuity Classifications (5 of 5): # of lives
Civil Rights/Pregnancy Discrimination Act
Proof of Loss provision
Law of Large Numbers
9. Allows policy owner to w/draw set % of death benefit upon verification of terminal illness w/ expectancy 12-24 mths.; generally tax-free.
Types of Insurers (by authorization)
Accelerated Benefits (aka Terminal Illness or Living Benefits) rider
Employer-Administered plan
Trusts
10. Provides % of monthly income benefit if Insured becomes disabled due to illness or accident.
Disability Income policy
Modified Premium Whole Life policy
Exclusions to Work. Comp.
Policy loans
11. Periodic return of premium to policy owners from Mutual (Par) Companies; not guaranteed & not taxable as income; may be used in 6 ways.
Employer Liability
Types of Insurers (by sector)
Dividends
Civil Rights/Pregnancy Discrimination Act
12. Dividends are NOT taxable but interest is. Loan interest is NOT tax-deductible. Interest paid by Insurer on retained funds is taxable.
Types of Renewability provisions
Limited Pay Whole Life policy
Concealment exceptions
Tax implications of Dividends - Loans & Interest
13. Qualified Annuity - Tax-deductible contributions & tax-deferred growth but fully taxable w/drawals.
Types of Licensed Producers
Tax implications of an Annuity (1 of 2)
Departments of an Insurer
Residual disability rider
14. Coverage remains in effect for 31 days past premium due date; benefits paid during grace period would be deducted from sum.
Elimination (aka Waiting) period
Cost of Living Adjustment (COLA) Disability rider
Free Look provision
Grace Period provision
15. 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.
Return of Premium rider
Convertibility provision
Preferred Provider Organization (PPO)
Change of Occupation provision
16. Receipt whereby coverage incepts ONLY after underwriting approval.
Approval Type Conditional receipt
Total disability (more restrictive definition)
Employer Liability
Family policy
17. Provides usual & customary business expenses (rent - utilities - salaries - mortgage) if owner becomes disabled; premiums deductible - benefits taxable.
Consolidated Omnibus Budget Reconciliation Act (COBRA)
Medicare Part A (aka Hospital Insurance or HI)
Notice of Claim provision
Business Overhead Expense (BOE) Disability policy
18. 1: Single (lump sum) premium; 2: Periodic premiums - can be level (fixed $) OR flexible from mth. to mth. (w/ req. min.)
Annuity Classifications (1 of 5): How premium is paid
Relation of Earnings to Insurance provision
Types of Agency Authority
Concealment
19. Same as Term Life but provides living benefit (endowment) to policy owner if Insured survives entire term.
Endowment Life policy
Waiver of Premium (Waiver of Cost of Insurance) rider
Medicare Part B (aka Supplemental Medical Insurance or SMI)
Credit Life policy
20. Provides increased death benefit if death occurs w/in 90 days & as result of accident; relatively INexpensive add-on.
Requirements to sell variable life products
Disability Income policy
Accidental Death (aka Multiple Indemnity) rider
Misstatement of Age/Sex provision
21. A&H - A&S - Sickness only; Medical; Disability; Accident only; Travel accident; LTC; Medicare supplement; AD&D; Dental/Vision/Prescription; Limited.
Variable Life policy (1 of 2)
Rate (as defined by CIC)
Types of Accident & Health insurance
Consolidated Omnibus Budget Reconciliation Act (COBRA)
22. 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.
Variable Universal Life policy
Notice of Claim provision
Universal (aka Flexible Premium Adjustable) Life policy (2 of 4)
Small Employer Medical Expense plan
23. Fixed premium w/ guaranteed min. death benefit that may increase due to higher than expected investment returns.
Primary Insurance Amount (PIA)
Occupational Disability policy
Variable Life policy (2 of 2)
COBRA Time Limitations
24. Agreement - Offer & acceptance; Consideration - application + premium; Legal capacity - licensed &/or competent; Legal purpose - public good.
Point of Service plan
Medicare Part C (aka Medicare Advantage)
Convertibility provision
Elements to contract
25. Prepaid med. benefits for "subscribers" @ approved facilities; many non-profit; Blue Cross - Hospital stays; Blue Shield - M.D. costs.
Blue Cross/Blue Shield
Accidental Death & Dismemberment (AD&D) Disability rider
Types of hazards
Key Employee policy
26. Provides disability income during surgery recovery from life-threatening condition (& sometimes cosmetic surgery).
Blue Cross/Blue Shield
Non-Occupational Disability policy
Market Value Adjusted (aka Modified Guaranteed) annuity
Transplant/Cosmetic Surgery rider
27. Waives premium upon disability of Insured until return to work; disability must persist for 6 mths. or longer. Cash value & dividends not affected.
Waiver of Premium (Waiver of Cost of Insurance) rider
Grace Period provision
Employer Liability
Annuity Classifications (5 of 5): # of lives
28. Same as Universal Life but cash value put in investment vehicles chosen by policy owner (stocks - bonds - munis.); cash value NOT guaranteed.
Requirements to sell variable life products
Types of Insurers (by domicile)
Variable Universal Life policy
Errors & Omissions (E&O)
29. Prepaid med. benefits for members ONLY w/ approved primary care M.D. (HMO employee); focus on preventative care; low co-pay.
Modified Endowment Contract (MEC)
Health Maintenance Organization (HMO)
Departments of an Insurer
Primary Insurance Amount (PIA)
30. Same as WL but cash value put in investment vehicles chosen by policy owner (stocks - bonds - munis.); cash value NOT guaranteed.
Annuity Classifications (2 of 5): When benefits begin
Variable Life policy (1 of 2)
Settlement options for Life policy (2 of 2)
Key Employee Disability policy
31. Grows @ fixed min. interest rate but w/ possible higher rate tied to equity index (i.e S&P Equity Index) appreciation; gains shared w/ Insurer.
Equity Indexed annuity
Medicare Part C (aka Medicare Advantage)
Business Continuation (aka Buy-Sell) Disability policy
Insurance contract characteristics (1 of 2)
32. Any person - assoc. - org. - partnership - business trust - LLC - or corp. capable of making an insurance contract.
Employee Retirement Income Security Act (ERISA)
Key Employee Disability policy
Types of Medical Plans
Insurer (as defined by CIC)
33. Excludes coverage for suicide during 1st 2 yrs. ONLY but - if it does - all premiums must be returned to beneficiary.
Permanent vs. Temporary disability
Suicide clause/provision
Premium modes
Types of Medical Plans
34. WL policy covering 2 or more Insureds but payable upon death of FIRST Insured - after which policy ends.
Workers' Compensation insurance
Joint Life (aka "First to die") policy
Business Continuation (aka Buy-Sell) policy
Concealment
35. Permanent disability due to total loss of sight - hearing - speech or use of 2 + limbs; benefits paid even while continuing to work.
Rescission
Payor (aka Waiver of Payor's Premium) rider
Insurer (as defined by CIC)
Presumptive disability
36. 1: Fixed - guaranteed fixed monthly income & fixed interest rate; 2: Variable - unguaranteed; monthly income varies based on stocks/bond returns.
Return of Premium rider
Annuity Classifications (3 of 5): Source of income
Valid life insurance contracts must identify...
Penalties for violating AIDS/HIV privacy laws
37. Benefits automatically increase annually based on inflationary index (i.e. Consumer Price Index) OR flat rate (5% max.).
Medicare Part B (aka Supplemental Medical Insurance or SMI)
Tax implications of an Estate
Primary Insurance Amount (PIA)
Cost of Living Adjustment (COLA) Disability rider
38. A company providing lump sum buyout (50-90% of total) of Life policy; becomes owner & beneficiary & assumes premium payments; usually terminally ill viator.
Annuity Classifications (2 of 5): When benefits begin
Viatical Settlement Provider (VSP)
Relation of Earnings to Insurance provision
Equity Index Whole Life policy
39. 1: Tax-free lump sum; 2: Monthly pay-outs for fixed time; 3: Fixed monthly payments until depleted.
Family or Dependents rider
Annuity Classifications (2 of 5): When benefits begin
Incontestability clause/provision
Settlement options for Life policy (1 of 2)
40. The state in which the contract is accepted or delivered is the state that possesses regulatory jurisdiction over Group plan.
Preferred Provider Organization (PPO)
Doctrine of Comity
Employer-Administered plan
Graded Premium Whole Life policy
41. Upon notice - Insurer must provide Claim Form (Proof of Loss Form) to Insured w/in 15 days.
Annuity Classifications (5 of 5): # of lives
Primary Insurance Amount (PIA)
Types of Accident & Health (A&H) providers
Claim Form (aka Proof of Loss Form) provision
42. Two death benefit options - Option A: death benefit ONLY; Option B: death benefit + cash value; death benefit NOT guaranteed.
Medicare Supplement or Medigap policy
Concealment
Universal (aka Flexible Premium Adjustable) Life policy (4 of 4)
Age Discrimination in Employment Act (ADEA)
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.
Waiver of Premium provision
7 Pay Test
Whole (aka Permanent or Straight) Life policy
Renewability provision
44. Death benefit determined by Insured's projected lost earnings potential.
Beneficiary provisions
Human Life Value approach
Exclusions for Major Medical plan
Tax implications of Death Benefit & Cash Value
45. Actual/Expressed - written powers; Implied - unwritten but customary practices; Apparent - perceived powers.
Experience vs. Community rating in Group Health plan
Types of Agency Authority
Equity Indexed annuity
Rehabilitation rider
46. Time extension of benefits based on "qualifying" event. 18 mth. extension if laid off or fired; 36 mth. extension if death - divorce or child leaves home.
COBRA Time Limitations
Partial disability rider
Errors & Omissions (E&O)
Equity Index Whole Life policy
47. Policy provisions must conform to state regulations where policy is sold.
Point of Service plan
Conformity with State Statute provision
Loss of Earnings Test
Phases of an annuity
48. Although death benefit is tax-free - it is included in gross estate value so federal &/or state taxes may apply to a portion in excess of fixed federal limit.
Annuity Classifications (3 of 5): Source of income
Tax implications of an Estate
Binding receipt (aka Temporary Insurance Agreement)
Health Insurance Portability and Accountability Act (HIPAA)
49. Conditional - coverage is conditional; Personal - parties are people; Good faith - honesty/integrity; Fiduciary - req's financial trust.
Non-Occupational Disability policy
Family policy
Health Maintenance Organization (HMO)
Insurance contract characteristics (2 of 2)
50. Unintentional - up to $1 -000 + legal $; Intentional - $1 -000-5 -000 + legal $; If harmful - misdemeanor + up to 1 yr. prison + up to $10 -000.
Departments of an Insurer
Types of Accident & Health insurance
Penalties for violating AIDS/HIV privacy laws
Basic Medical plan
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