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. An irrevocable IRS classification of a policy (determined by the 7 Pay Test) whereby tax advantages are lost for all distributions ONLY.
Modified Endowment Contract (MEC)
Types of hazards
Errors & Omissions (E&O)
Parole Pardon Rule
2. Same as WL but w/ Level Term rider; upon death - pays monthly income for FULL term AFTER which pays full death benefit.
Errors & Omissions (E&O)
Valid life insurance contracts must identify...
Return of Cash Value rider
Family Maintenance policy
3. Authorized (admitted) - can conduct business in state; Unauthorized (non-admitted) - cannot conduct business in state (w/ one exception).
Cross Purchase Plan
Types of Insurers (by authorization)
Legal Action provision
Cash value
4. Potential circumstance that could cause a loss; measured in dollars.
Revocable vs. Irrevocable beneficiary
Loss exposure
Transplant/Cosmetic Surgery rider
Types of Medical Plans
5. Prepaid med. benefits for members ONLY w/ approved primary care M.D. (HMO employee); focus on preventative care; low co-pay.
Return of Premium rider
Universal (aka Flexible Premium Adjustable) Life policy (2 of 4)
Point of Service plan
Health Maintenance Organization (HMO)
6. Unilateral - Insurer provides contract; Adhesion - parties must adhere to terms; Aleatory - benefits may not inure equally.
Insurance contract characteristics (1 of 2)
Dividend options
Medicare Part C (aka Medicare Advantage)
Medi-Cal Share Cost plan
7. Agents - represent Insurer; Brokers - represent themselves & Insured; Solicitors - represent one agent to solicit leads.
Universal (aka Flexible Premium Adjustable) Life policy (4 of 4)
Automatic Premium Loan (APL) provision
Dread Disease policy
Types of Licensed Producers
8. WL policy covering 2 or more Insureds but ONLY payable upon death of LAST Insured - generally low premium but high death benefit.
Types of reinsurance
Survivorship (aka "Last to die") policy
Insurable interest
Universal (aka Flexible Premium Adjustable) Life policy (4 of 4)
9. Upon death - death benefit is paid + the aggregate of premiums paid to date; add-on to Term policy ONLY.
Types of Insurers (by domicile)
Return of Premium rider
Universal (aka Flexible Premium Adjustable) Life policy (4 of 4)
Types of reinsurance
10. 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
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
11. Provides increased death benefit if death occurs w/in 90 days & as result of accident; relatively INexpensive add-on.
Civil Rights/Pregnancy Discrimination Act
Exclusions for Major Medical plan
Accidental Death (aka Multiple Indemnity) rider
Types of Accident & Health insurance
12. Fraternal - non-profit - members only; Reciprocal - unincorp'd org. - members insure each other; Lloyd's Assoc. - groups sharing risks; Surplus lines - special market risks.
Guaranteed Insurability (aka Additional Purchase or Future Increase) Disability rider
Pure risk vs. Speculative risk
CA Work. Comp. Statutes
Types of Insurers (miscellaneous)
13. A lapsed policy may be reinstated if not longer than 3-5 yrs. - & proof of insurability re-established - & back premiums + interest paid.
Phases of an annuity
Types of Agency Authority
Medicaid/Medi-Cal
Reinstatement provision
14. 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
Indemnify
Types of Insurers (miscellaneous)
CA Work. Comp. Statutes
15. 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.
Elements to contract
Adverse selection
Tax implications of Disability policy
Notice of Claim provision
16. Federal law to protect Federal employees' (& their beneficiaries') pension - group insurance - & welfare benefits.
Employee Retirement Income Security Act (ERISA)
Revocable vs. Irrevocable beneficiary
Tax implications of an Annuity (1 of 2)
Insurable interest
17. Time period preceding each disability during which benefits are not paid; longer elimination periods = cheaper premium.
Rehabilitation rider
Elimination (aka Waiting) period
Employer-Administered plan
Insurer (as defined by CIC)
18. Summary of coverage including premium & mode of payment - death benefit - beneficiary(ies) - exclusions - & promise to pay.
Human Life Value approach
Universal (aka Flexible Premium Adjustable) Life policy (2 of 4)
Insuring clause/provision (aka Insuring Agreement)
Annuity
19. Provides hospital insurance automatically @ age 65 (if FICA qualified) @ no fee but may have deductible & co-pay.
Transplant/Cosmetic Surgery rider
Medicare Part A (aka Hospital Insurance or HI)
Medicare Part B (aka Supplemental Medical Insurance or SMI)
Types of Insurers (by domicile)
20. Prepaid med. benefits for "subscribers" @ approved facilities; many non-profit; Blue Cross - Hospital stays; Blue Shield - M.D. costs.
Estoppel
Pure risk vs. Speculative risk
Blue Cross/Blue Shield
Medicare Part B (aka Supplemental Medical Insurance or SMI)
21. 1: parties to contract; 2: insured party or life; 3: insurable interest - if 3rd party; 4: risks insured against; 5: policy period (term); 6: premium & mode.
Dental Plan
Relation of Earnings to Insurance provision
Valid life insurance contracts must identify...
Types of Insurers (miscellaneous)
22. Available for any reason up to full cash value @ fixed (max 8%) OR variable interest rate; loan $ + interest deducted from benefit @ death.
Dividend options
Annuity Classifications (1 of 5): How premium is paid
Policy loans
Guaranteed Insurability (aka Additional Purchase or Future Increase) Disability rider
23. Agreement - Offer & acceptance; Consideration - application + premium; Legal capacity - licensed &/or competent; Legal purpose - public good.
Term Life policy
1035 Exchange
Universal (aka Flexible Premium Adjustable) Life policy (3 of 4)
Elements to contract
24. A company providing lump sum buyout (50-90% of total) of Life policy; becomes owner & beneficiary & assumes premium payments; usually terminally ill viator.
Long Term Care (LTC) policy
Viatical Settlement Provider (VSP)
24 Hour Coverage (CA)
Factors that determine premium
25. 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
Loss of Earnings Test
Annuity Classifications (2 of 5): When benefits begin
Relation of Earnings to Insurance provision
26. Two death benefit options - Option A: death benefit ONLY; Option B: death benefit + cash value; death benefit NOT guaranteed.
Universal (aka Flexible Premium Adjustable) Life policy (4 of 4)
Permanent vs. Temporary disability
Conformity with State Statute provision
Types of hazards
27. Group plan initially self-funded by employer (like SIR); after which - group plan Insurer covers (up to policy limit); requires TPA.
Graded Premium Whole Life policy
Types of Insurers (by domicile)
Employer-Administered plan
Common Life Exclusions
28. 'The inability to perform ANY gainful occupation'.
Dental Plan
Types of Insurers (by domicile)
Graded Premium Whole Life policy
Total disability (any-occupational definition)
29. Guaranteed min. interest rate on cash value buildup but possible higher rate if short-term investment returns higher than expected.
Universal (aka Flexible Premium Adjustable) Life policy (3 of 4)
Total disability (as commonly defined)
Guaranteed Insurability Life rider
Universal (aka Flexible Premium Adjustable) Life policy (4 of 4)
30. Same as Term Life but provides living benefit (endowment) to policy owner if Insured survives entire term.
Endowment Life policy
Free Look provision
Workers' Compensation insurance
CA Work. Comp. Statutes
31. To "make whole again" w/out benefit or detriment; neither monetary profit nor loss.
Types of Renewability provisions
Business Continuation (aka Buy-Sell) Disability policy
Indemnify
Types of Insurers (miscellaneous)
32. Pure risk involves chance of loss ONLY (accident or misfortune). Speculative risk involves chance of loss OR gain (gambling - stock investment).
Settlement options for Life policy (2 of 2)
Total disability (as commonly defined)
Pure risk vs. Speculative risk
Estoppel
33. Policy owner has 90 days from date of loss to submit proof of loss to Insurer; valid claim must be paid immediately upon receipt.
Proof of Loss provision
Guaranteed Insurability (aka Additional Purchase or Future Increase) Disability rider
Modified Premium Whole Life policy
Indeterminate Premium Whole Life policy
34. PURELY employer-funded account to reimburse employees for qualified medical expenses not covered by group health plan.
Health Reimbursement Account (HRA)
Departments of an Insurer
Impairment (Exclusion) rider
Transplant/Cosmetic Surgery rider
35. Provides 24 hr. health coverage both "on" & "off" job - but may cause coverage duplication & coordination challenges.
Dread Disease policy
24 Hour Coverage (CA)
Return of Cash Value rider
Annuity Classifications (3 of 5): Source of income
36. 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.
Insuring clause/provision (aka Insuring Agreement)
Medicare
Variable Life policy (1 of 2)
Age Discrimination in Employment Act (ADEA)
37. Same as WL but cash value put in investment vehicles chosen by policy owner (stocks - bonds - munis.); cash value NOT guaranteed.
Variable Life policy (1 of 2)
Survivorship (aka "Last to die") policy
Exclusions to Work. Comp.
Medicare Part D
38. Taxable income (unlike individual plans); can be either short-term - 13-52 wks. max. or long-term - longer than 52 wks.
24 Hour Coverage (CA)
Proof of Loss provision
Total disability (as commonly defined)
Group Disability plan
39. After 2-3 yrs. - Whole Life policy equity builds tax-deferred @ fixed interest rate until it equals death benefit; borrowable but taxable.
Family or Dependents rider
Whole (aka Permanent or Straight) Life policy
Business Continuation (aka Buy-Sell) policy
Cash value
40. Premiums determined by target cash values or death benefit; partial cash value w/drawals allowed; transparent policy w/ unbundled premium.
Universal (aka Flexible Premium Adjustable) Life policy (2 of 4)
Major Medical plan
COBRA Time Limitations
Accidental Death (aka Multiple Indemnity) rider
41. Same as WL but death benefit decreases each yr. w/ dividends paid annually to offset decrease.
Multiple Employer Trust (MET) aka Multiple Employer Welfare Association (MEWA)
Adjustable Whole Life policy
Enhanced Ordinary (aka Extraordinary) Whole Life policy
Tax implications of Death Benefit & Cash Value
42. Covers disabilities occurring ONLY "off" job; benefits do not overlap work. comp. (i.e. Group plan).
1035 Exchange
Dread Disease policy
Non-Occupational Disability policy
Concealment
43. Written policy terms supersede oral statements made prior to policy issue.
Parole Pardon Rule
Time Limit on Certain Defenses provision
Universal (aka Flexible Premium Adjustable) Life policy (3 of 4)
Equity Index Whole Life policy
44. Responsible adult trustee designated to manage death benefits for minor child beneficiary until adulthood.
Waiver of Premium (Waiver of Cost of Insurance) rider
Trusts
Types of Insurers (by sector)
Accidental Death & Dismemberment (AD&D) Life policy
45. Info already known; Info that should have been known; Waived info; Irrelevant info.
Concealment exceptions
Universal (aka Flexible Premium Adjustable) Life policy (3 of 4)
Recurrent disability clause/provision
Transplant/Cosmetic Surgery rider
46. Preferred or Preferred Smoker; Standard or Standard Smoker; Substandard; Denied.
Departments of an Insurer
Tax implications of Death Benefit & Cash Value
Underwriting risk categories
CA Work. Comp. Statutes
47. Receipt whereby coverage incepts conditionally upon submission of full consideration and that all underwriting reqs. are met.
Insurability Type Conditional receipt
Misstatement of Age/Sex provision
Relation of Earnings to Insurance provision
Disability Income policy
48. Identical to Incontestable Clause in Life policy.
Claim Form (aka Proof of Loss Form) provision
Concealment
Time Limit on Certain Defenses provision
Types of Accident & Health (A&H) providers
49. Grows @ fixed interest rate for set term but cash value may adjust to prevailing rate (+ or -) if fully surrendered before term ends; % w/drawal ok.
Medicaid/Medi-Cal
Elements to contract
Market Value Adjusted (aka Modified Guaranteed) annuity
Long Term Care (LTC) policy
50. Same as WL but premium low for 1st 5 yrs. - THEN has annual premium increases for set # yrs. - THEN level premium.
Joint Life (aka "First to die") policy
Graded Premium Whole Life policy
Tax implications of medical plans
7 Pay Test
Can you answer 50 questions in 15 minutes?
Let me suggest you:
Browse all subjects
Browse all tests
Most popular tests
Major Subjects
Tests & Exams
AP
CLEP
DSST
GRE
SAT
GMAT
Certifications
CISSP go to https://www.isc2.org/
PMP
ITIL
RHCE
MCTS
More...
IT Skills
Android Programming
Data Modeling
Objective C Programming
Basic Python Programming
Adobe Illustrator
More...
Business Skills
Advertising Techniques
Business Accounting Basics
Business Strategy
Human Resource Management
Marketing Basics
More...
Soft Skills
Body Language
People Skills
Public Speaking
Persuasion
Job Hunting And Resumes
More...
Vocabulary
GRE Vocab
SAT Vocab
TOEFL Essential Vocab
Basic English Words For All
Global Words You Should Know
Business English
More...
Languages
AP German Vocab
AP Latin Vocab
SAT Subject Test: French
Italian Survival
Norwegian Survival
More...
Engineering
Audio Engineering
Computer Science Engineering
Aerospace Engineering
Chemical Engineering
Structural Engineering
More...
Health Sciences
Basic Nursing Skills
Health Science Language Fundamentals
Veterinary Technology Medical Language
Cardiology
Clinical Surgery
More...
English
Grammar Fundamentals
Literary And Rhetorical Vocab
Elements Of Style Vocab
Introduction To English Major
Complete Advanced Sentences
Literature
Homonyms
More...
Math
Algebra Formulas
Basic Arithmetic: Measurements
Metric Conversions
Geometric Properties
Important Math Facts
Number Sense Vocab
Business Math
More...
Other Major Subjects
Science
Economics
History
Law
Performing-arts
Cooking
Logic & Reasoning
Trivia
Browse all subjects
Browse all tests
Most popular tests