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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. Part of IRS Section 125 cafeteria plan - which allows pre-tax payroll deductions for qualified medical expenses or child/dependent care.
Non-Occupational Disability policy
Family Income policy
Premium modes
Flexible Spending Account (FSA)
2. Pre-existing illness/injury; Waiting period; Elimination period; Probationary period; Benefits - Exclusions - Limitations; Underwriting reqs.
Total disability (as commonly defined)
Considerations in replacing Health insurance
Residual disability rider
Loss of Earnings Test
3. Federally-funded but state-run program for truly indigent individuals & families providing medical care at Federal clinic.
Risk management
Medicaid/Medi-Cal
Loss of Earnings Test
Accidental Death & Dismemberment (AD&D) Disability rider
4. Same as WL but death benefit increases annually - linked to Consumer Price Index; premium increases annually OR is set high from start.
Medicare Supplement or Medigap policy
Total disability (any-occupational definition)
Equity Index Whole Life policy
Types of Accident & Health insurance
5. Must be delivered in person or by certified - registered or 1st-class mail w/ signature - unless waived by Insurance Commissioner.
Levels of Long Term Care provided
Policy delivery
Risk management
Equity Indexed annuity
6. If total premiums paid w/in 1st 7 yrs. exceed net level premium that should have been paid - policy is an MEC.
7 Pay Test
Civil Rights/Pregnancy Discrimination Act
Equity Indexed annuity
Peril vs. Hazard
7. Benefits automatically increase annually based on inflationary index (i.e. Consumer Price Index) OR flat rate (5% max.).
Concealment
Cost of Living Adjustment (COLA) Disability rider
Split Dollar Plan
Impairment (Exclusion) rider
8. Prohibited w/ regard to testing for people of same class; test results must remain confidential; coverage may be declined (once discovered).
AIDS/HIV discrimination
Automatic Premium Loan (APL) provision
Employer Liability
Parole Pardon Rule
9. 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.
Endowment Life policy
Tax implications of Disability policy
Notice of Claim provision
Convertibility provision
10. Beneficiary has right to leave death benefits / Insurer to protect $ from creditors; interest (taxable) paid on retained funds.
Automatic Premium Loan (APL) provision
Group Disability plan
Workers' Compensation insurance
Spendthrift provision
11. Same as WL but w/ Decreasing Term rider; upon death - pays monthly income for REMAINING term AFTER which pays full death benefit.
Age Discrimination in Employment Act (ADEA)
Suicide clause/provision
Relation of Earnings to Insurance provision
Family Income policy
12. Compensates business for loss due to death or disability of key employee; premiums not deductible but benefits tax-free.
Relation of Earnings to Insurance provision
Business Overhead Expense (BOE) Disability policy
Key Employee policy
Return of Premium rider
13. The state in which the contract is accepted or delivered is the state that possesses regulatory jurisdiction over Group plan.
1035 Exchange
Doctrine of Comity
Time Limit on Certain Defenses provision
Departments of an Insurer
14. Identical to Incontestable Clause in Life policy.
AIDS/HIV discrimination
Variable Life policy (2 of 2)
Basic Medical plan
Time Limit on Certain Defenses provision
15. Privately-sold policies to provide benefits not covered by Medicare; divided into 12 plans listed alphabetically A - L; 30-day free look; guaranteed renewable.
Non-Occupational Disability policy
Pure risk vs. Speculative risk
Medicare Supplement or Medigap policy
Levels of Long Term Care provided
16. Private sector (Commercial) - provides LA&H - P&C - & LTC; Public sector (Gov't) - provides flood - work. comp. - Medicare/Medicaid - Group Life (SGLI/FEGLI).
Relation of Earnings to Insurance provision
Types of Insurers (by sector)
Payment of Premium provision
Departments of an Insurer
17. Covers entire family w/ WL for breadwinner & (convertible) Level Term for spouse & children (until certain age).
Family policy
Family or Dependents rider
Presumptive disability
Insurer (as defined by CIC)
18. WL policy covering 2 or more Insureds but payable upon death of FIRST Insured - after which policy ends.
24 Hour Coverage (CA)
Needs approach (most common)
Disability Income policy
Joint Life (aka "First to die") policy
19. Tendency of poorer risks to seek insurance.
Considerations in replacing Health insurance
Types of Insurers (by domicile)
Proof of Loss provision
Adverse selection
20. Policy owner has 90 days from date of loss to submit proof of loss to Insurer; valid claim must be paid immediately upon receipt.
Dividend options
Proof of Loss provision
Medi-Cal Share Cost plan
Disability Income policy
21. No-cost provision that authorizes Insurer to borrow from cash value to pay unpaid premiums after grace period; must ask for @ app. time.
Split Dollar Plan
Types of Term Life policies
Automatic Premium Loan (APL) provision
Insurer (as defined by CIC)
22. An attempt to contain costs by employing various strategies - including wellness programs - preventative testing - outpatient & alternative procedures.
Tax implications of an Estate
Non-forfeiture options for WL policy
Business Continuation (aka Buy-Sell) Disability policy
Medical cost containment (aka Managed care)
23. Same as Term Life but provides living benefit (endowment) to policy owner if Insured survives entire term.
Age Discrimination in Employment Act (ADEA)
Endowment Life policy
Human Life Value approach
Elimination (aka Waiting) period
24. Agreement - Offer & acceptance; Consideration - application + premium; Legal capacity - licensed &/or competent; Legal purpose - public good.
Levels of Long Term Care provided
Elements to contract
Peril vs. Hazard
Dental Plan
25. Excludes coverage for specific injury/illness either temporarily or permanently in order to eliminate pre-existing condition.
Impairment (Exclusion) rider
Rescission
Valid life insurance contracts must identify...
Trial Application (aka Request for Offer)
26. Hybrid of HMO & PPO w/ greater flexibility on choosing specialists outside network w/ benefits still provided but @ higher co-pay.
1035 Exchange
Tax implications of medical plans
Medicare Supplement or Medigap policy
Point of Service plan
27. War/Military; Intentional self-inflicted; Aviation (non-commercial); Foreign country; Loss of professional license; Illegal activity; Mental disorders (after 1-2 yrs.).
Reinstatement provision
Common Disability Exclusions
Variable Life policy (2 of 2)
Adverse selection
28. Provides for continued operation of business if partner becomes disabled - by allowing other partner(s) to buy disabled partner's interest in business.
Medicare Part D
Entire Contract provision
Common Accident provision
Business Continuation (aka Buy-Sell) Disability policy
29. Federal law which prohibits companies w/ 20+ employees from denying work & medical benefits to employees due to age.
Common Disability Exclusions
Age Discrimination in Employment Act (ADEA)
Universal (aka Flexible Premium Adjustable) Life policy (1 of 4)
Types of Insurers (by ownership)
30. 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;
Insurable interest
Premium modes
Experience vs. Community rating in Group Health plan
Social Security (aka Old Age Survivors Disability Health Insurance or OASDHI)
31. WL policy covering 2 or more Insureds but ONLY payable upon death of LAST Insured - generally low premium but high death benefit.
Survivorship (aka "Last to die") policy
Retrocession
Accidental Death & Dismemberment (AD&D) Life policy
Business Continuation (aka Buy-Sell) policy
32. Dividends are NOT taxable but interest is. Loan interest is NOT tax-deductible. Interest paid by Insurer on retained funds is taxable.
Medical Savings Account (MSA) & Health Savings Account (HSA)
Tax implications of Dividends - Loans & Interest
Tax implications of an Estate
Rescission
33. Policy owner must notify Insurer of loss either in writing - in person or by phone w/in 20 days.
Employer Liability
Notice of Claim provision
Annuity
Health Reimbursement Account (HRA)
34. Actual/Expressed - written powers; Implied - unwritten but customary practices; Apparent - perceived powers.
Universal (aka Flexible Premium Adjustable) Life policy (2 of 4)
Grace Period provision
Types of Agency Authority
Social Security (aka Old Age Survivors Disability Health Insurance or OASDHI)
35. Price of insurance per exposure unit.
Rate (as defined by CIC)
Departments of an Insurer
Civil Rights/Pregnancy Discrimination Act
Cross Purchase Plan
36. No-charge annuity w/drawals allowed up to 10% of total - THEN penalized on sliding scale based on # policy yrs.; conditionally waived.
Tax implications of medical plans
Major Medical plan
CHAMPUS (aka TriCare)
Annuity surrender charges
37. Generally 10 days after policy delivery to cancel policy w/ full refund - except 30 days for seniors or for replacement policies.
Comprehensive Major Medical plan
Free Look provision
Primary Insurance Amount (PIA)
Estoppel
38. Coverage for catastrophic loss w/ high limits - front end deductible; co-insurance (80/20%); blanket coverage; stop loss max.
Entire Contract provision
Legal Action provision
Variable Life policy (2 of 2)
Major Medical plan
39. Summary of coverage including premium & mode of payment - death benefit - beneficiary(ies) - exclusions - & promise to pay.
Change of Occupation provision
Insuring clause/provision (aka Insuring Agreement)
Types of Accident & Health insurance
Needs approach (most common)
40. Req. by CA statute & may provide workers coverage for action-over claims.
Employer Liability
Age Discrimination in Employment Act (ADEA)
Return of Premium rider
Medicaid/Medi-Cal
41. 'The inability to perform your OWN normal occupation or daily duties'.
Exclusions to Work. Comp.
Common Disability Exclusions
Accelerated Benefits (aka Terminal Illness or Living Benefits) rider
Total disability (as commonly defined)
42. Covers disabilities occurring both "on" AND "off" job; "on" job benefits paid in addition to work. comp. - if applicable (i.e. individual plan).
Factors that determine premium
Term Life policy
Occupational Disability policy
Split Dollar Plan
43. Same as WL but premium low for 1st 3-5 yrs. - THEN has one-time premium increase.
Types of Accident & Health (A&H) providers
AIDS/HIV discrimination
Modified Premium Whole Life policy
Universal (aka Flexible Premium Adjustable) Life policy (3 of 4)
44. 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
Grace Period provision
Suicide clause/provision
Enhanced Ordinary (aka Extraordinary) Whole Life policy
45. Commercial (private) companies; HMOs; PPOs; Blue Cross/Blue Shield; Employer-sponsored plans; Government.
Non-forfeiture options for WL policy
Types of Accident & Health (A&H) providers
Enhanced Ordinary (aka Extraordinary) Whole Life policy
Adjustable Whole Life policy
46. 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
Supplemental Major Medical plan
Social Security (aka Old Age Survivors Disability Health Insurance or OASDHI)
Joint Life (aka "First to die") policy
47. Peril is the CAUSE of loss. Hazard is a condition that increases LIKELIHOOD of loss.
Permanent vs. Temporary disability
Peril vs. Hazard
Blackout Period
Accidental Death & Dismemberment (AD&D) Disability rider
48. No deductible coverage for: daily room/board; ancillary costs; surgeon &/or physician expense (for added premium).
Levels of Long Term Care provided
Fraud
Medicare Part C (aka Medicare Advantage)
Basic Medical plan
49. 'The inability to perform ANY gainful occupation'.
Types of Insurers (by sector)
Accidental Death & Dismemberment (AD&D) Life policy
Universal (aka Flexible Premium Adjustable) Life policy (2 of 4)
Total disability (any-occupational definition)
50. Prevents overinsuring in order to profit from disability by coordinating benefits between Insurers.
Relation of Earnings to Insurance provision
Dental Plan
Types of Insurers (by domicile)
Total disability (as commonly defined)