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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. Provides hospital insurance automatically @ age 65 (if FICA qualified) @ no fee but may have deductible & co-pay.
Guaranteed Insurability (aka Additional Purchase or Future Increase) Disability rider
Applicant Representations vs. Warranties
Medicare Part A (aka Hospital Insurance or HI)
Workers' Compensation insurance
2. Federal law to protect Federal employees' (& their beneficiaries') pension - group insurance - & welfare benefits.
Convertibility provision
Health Insurance Portability and Accountability Act (HIPAA)
Employee Retirement Income Security Act (ERISA)
Change of Occupation provision
3. Policy provisions must conform to state regulations where policy is sold.
Whole (aka Permanent or Straight) Life policy
Medi-Cal Share Cost plan
Conformity with State Statute provision
Waiver of Premium provision
4. Prohibited w/ regard to testing for people of same class; test results must remain confidential; coverage may be declined (once discovered).
Equity Index Whole Life policy
Recurrent disability clause/provision
Limited Pay Whole Life policy
AIDS/HIV discrimination
5. Waives premium upon disability of Insured until return to work; disability must persist for 6 mths. or longer. Cash value & dividends not affected.
Types of Insurers (by domicile)
Enhanced Ordinary (aka Extraordinary) Whole Life policy
Disability Income policy
Waiver of Premium (Waiver of Cost of Insurance) rider
6. 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
Tax implications of an Annuity (1 of 2)
COBRA Time Limitations
Accidental Death (aka Multiple Indemnity) rider
7. Provides professional services - rehabilitation - training/re-training & related costs to assist Insured in returning to work.
Rehabilitation rider
Settlement options for Life policy (2 of 2)
Limited Pay Whole Life policy
Accidental Death & Dismemberment (AD&D) Disability rider
8. War/Military; Intentional self-inflicted; Aviation (non-commercial); Foreign country; Loss of professional license; Illegal activity; Mental disorders (after 1-2 yrs.).
Common Disability Exclusions
Relation of Earnings to Insurance provision
Exclusions to Work. Comp.
Medicare Part D
9. Specialized policy covering diagnostic & preventative dental care; often no deductible; co-insurance; expensive; may be included w/ medical plan.
Estoppel
Employee Retirement Income Security Act (ERISA)
Mortality vs. Morbidity tables
Dental Plan
10. Govt. organization providing health care benefits for dependents of military personnel.
Insuring clause/provision (aka Insuring Agreement)
Annuity Classifications (1 of 5): How premium is paid
Current Assumption (aka Interest-Sensitive) Whole Life policy
CHAMPUS (aka TriCare)
11. Period of time following any children's survivor benefit & before benefits are provided to employee's widow/widower.
Small Employer Medical Expense plan
Dividend options
Blackout Period
Life insurance policy
12. 1: mortality probability charge; 2: Insurer's investment return; 3: expenses (admin costs - commissions). 1 - 2 = net; 1 - 2 + 3 = gross.
Family policy
Annuity Classifications (1 of 5): How premium is paid
Palliative vs. Curative care
Factors that determine premium
13. Annuity distributions prior to age 59 1/2 incur a 10% IRS penalty EXCEPT for death - disability - immediate annuity - or rollover.
Variable Life policy (2 of 2)
Underwriting risk categories
Types of Insurers (by sector)
IRS Penalties for Annuities
14. Covers disabilities occurring both "on" AND "off" job; "on" job benefits paid in addition to work. comp. - if applicable (i.e. individual plan).
Annuity Classifications (4 of 5): Disposition "pay-out" of proceeds
Occupational Disability policy
Types of hazards
Flexible Spending Account (FSA)
15. Federal law which prohibits companies w/ 20+ employees from denying work & medical benefits to employees due to age.
Age Discrimination in Employment Act (ADEA)
CA Work. Comp. Statutes
Earned vs. Unearned premium
Joint Life (aka "First to die") policy
16. 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.
Exclusions for Major Medical plan
Tax implications of Disability policy
Business Continuation (aka Buy-Sell) Disability policy
Spendthrift provision
17. Permanent disability due to total loss of sight - hearing - speech or use of 2 + limbs; benefits paid even while continuing to work.
Accidental Death & Dismemberment (AD&D) Life policy
Major Medical plan
Presumptive disability
Variable Universal Life policy
18. Periodic return of premium to policy owners from Mutual (Par) Companies; not guaranteed & not taxable as income; may be used in 6 ways.
Dividends
Equity Index Whole Life policy
CA Work. Comp. Statutes
Juvenile Life (aka Jumping Juvenile) policy
19. Policy must be delivered w/ original (or copy of same) application attached.
Waiver of Premium provision
Indeterminate Premium Whole Life policy
Indemnify
Entire Contract provision
20. Fixed premium w/ guaranteed min. death benefit that may increase due to higher than expected investment returns.
Equity Indexed annuity
Settlement options for Life policy (2 of 2)
Variable Life policy (2 of 2)
Tax implications of Dividends - Loans & Interest
21. 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
Elimination (aka Waiting) period
Factors that determine premium
Exclusions to Work. Comp.
Annuity
22. Allows policy owner to w/draw set % of death benefit upon verification of terminal illness w/ expectancy 12-24 mths.; generally tax-free.
Accelerated Benefits (aka Terminal Illness or Living Benefits) rider
Levels of Long Term Care provided
Partial disability rider
Variable Life policy (1 of 2)
23. Same as WL but premium low for 1st 5 yrs. - THEN has annual premium increases for set # yrs. - THEN level premium.
Incontestability clause/provision
Trusts
Graded Premium Whole Life policy
Key Employee Disability policy
24. Provides for continued operation of business if partner dies - by allowing surviving partner(s) to buy deceased partner's interest in business.
Business Continuation (aka Buy-Sell) policy
Group Disability plan
IRS Penalties for Annuities
Insurable interest
25. Mathematical calculation based on overall FICA contributions used to determine retirement/disability/survivorship benefit.
Adjustable Whole Life policy
Applicant Representations vs. Warranties
Group Disability plan
Primary Insurance Amount (PIA)
26. Privately-provided or Medicare-provided (if no private carrier) prescription drug plans for qualified individuals but w/ premium - deductible & co-pay.
Types of Insurers (miscellaneous)
Variable Life policy (1 of 2)
Convertibility provision
Medicare Part D
27. Representation - oral or written statement made to best of knowledge or belief; Warranty - statement guaranteed/presumed/understood to be true.
Long Term Care (LTC) policy
Applicant Representations vs. Warranties
Annuity Classifications (2 of 5): When benefits begin
Medicare Part A (aka Hospital Insurance or HI)
28. Covers entire family w/ WL for breadwinner & (convertible) Level Term for spouse & children (until certain age).
Types of Insurers (miscellaneous)
Flexible Spending Account (FSA)
Family policy
Types of Accident & Health (A&H) providers
29. Policy covering minor child; premium fixed but death benefit increases by 5 times @ age 18 or 21.
Cost of Living Adjustment (COLA) Disability rider
Notice of Claim provision
CA Work. Comp. Statutes
Juvenile Life (aka Jumping Juvenile) policy
30. Pays death benefit until age 100 or death; builds equity (cash value); may be transferred or sold; generally level premium.
Medicare Part D
Reinstatement provision
Common Life Exclusions
Whole (aka Permanent or Straight) Life policy
31. Any person - assoc. - org. - partnership - business trust - LLC - or corp. capable of making an insurance contract.
Payment of Premium provision
Free Look provision
Spendthrift provision
Insurer (as defined by CIC)
32. Life license + NASD (FINRA) Series 6 or 7.
Employer Liability
Requirements to sell variable life products
Insuring clause/provision (aka Insuring Agreement)
CA Work. Comp. Statutes
33. Temp. coverage for set duration w/ death benefit ONLY (no cash value) - offers largest $ for lowest premium; renewable; convertible.
Tax implications of an Annuity (1 of 2)
Beneficiary provisions
Universal (aka Flexible Premium Adjustable) Life policy (3 of 4)
Term Life policy
34. Intentional OR unintentional failure to disclose material underwriting facts that should have been disclosed; grounds for policy rescission.
Modified Premium Whole Life policy
Penalties for violating AIDS/HIV privacy laws
Concealment
Payment of Premium provision
35. Written contract that provides INCOME @ high interest rate for fixed period OR for annuitant's lifetime w/ possible death benefit.
Transplant/Cosmetic Surgery rider
Family policy
Rehabilitation rider
Annuity
36. Privately-sold policies to provide benefits not covered by Medicare; divided into 12 plans listed alphabetically A - L; 30-day free look; guaranteed renewable.
Insuring clause/provision (aka Insuring Agreement)
Free Look provision
Term Life policy
Medicare Supplement or Medigap policy
37. Receipt whereby coverage incepts immediately upon submission of full consideration - unless declined & premium refunded.
Policy delivery
Binding receipt (aka Temporary Insurance Agreement)
Insurable interest
Medicaid/Medi-Cal
38. 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;
Transplant/Cosmetic Surgery rider
Dental Plan
Total disability (as commonly defined)
Social Security (aka Old Age Survivors Disability Health Insurance or OASDHI)
39. Savings account for medical expenses; Tax-deductible contributions; tax-deferred growth; tax-free for qualified use; taxable for non-qualified use.
Medical Savings Account (MSA) & Health Savings Account (HSA)
Types of Accident & Health insurance
Split Dollar Plan
Types of hazards
40. If Insured & primary beneficiary die due to same act (w/in 14 days) - primary assumed 1st to die & contingent beneficiary paid death benefit.
Loss exposure
Types of Insurers (miscellaneous)
Common Disaster (Simultaneous Death Act) clause/provision
Payment of Premium provision
41. Prevents overinsuring in order to profit from disability by coordinating benefits between Insurers.
Civil Rights/Pregnancy Discrimination Act
Relation of Earnings to Insurance provision
Dividends
IRS Penalties for Annuities
42. Written contract to transfer risk of premature death from one party to another; pays stated sum upon death; creates instant estate.
Common Accident provision
Payor (aka Waiver of Payor's Premium) rider
Life insurance policy
Notice of Claim provision
43. Allows for use of HMO/PPO or other private carrier to provide expanded benefits @ additional premium & if enrolled in BOTH Parts A & B.
Family policy
Departments of an Insurer
Family or Dependents rider
Medicare Part C (aka Medicare Advantage)
44. Provides benefit during Social Security "black-out" period - up to 1 yr.
Supplemental Major Medical plan
Peril vs. Hazard
Social Security Benefit (Supplement) rider
Total disability (any-occupational definition)
45. Summary of coverage including premium & mode of payment - death benefit - beneficiary(ies) - exclusions - & promise to pay.
Grace Period provision
Beneficiary provisions
Non-forfeiture options for WL policy
Insuring clause/provision (aka Insuring Agreement)
46. 1: Individual; 2: Joint - multiple annuitants paid until 1st dies; 3: Joint & Survivor - multiple annuitants paid until 1st dies THEN survivors paid but @ reduced $.
Insuring clause/provision (aka Insuring Agreement)
Tax implications of an Annuity (1 of 2)
Annuity Classifications (5 of 5): # of lives
Conformity with State Statute provision
47. Facultative - case by case agreements; Automatic/Treaty - automatic acceptance of risk percentage per previous agreement.
Peril vs. Hazard
Types of reinsurance
Payment of Premium provision
Family policy
48. Responsible adult trustee designated to manage death benefits for minor child beneficiary until adulthood.
Phases of an annuity
Family Maintenance policy
Accidental Death & Dismemberment (AD&D) Disability rider
Trusts
49. 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.
Employer-Administered plan
Waiver of Premium provision
Levels of Long Term Care provided
Reinstatement provision
50. No-charge annuity w/drawals allowed up to 10% of total - THEN penalized on sliding scale based on # policy yrs.; conditionally waived.
Human Life Value approach
Annuity surrender charges
Universal (aka Flexible Premium Adjustable) Life policy (3 of 4)
Pure risk vs. Speculative risk