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. Process which prevents claim denial as a result of false statement or promise (made by Insurer) - which was relied upon by Insured.
Requirements to sell variable life products
Estoppel
Tax implications of Dividends - Loans & Interest
Convertibility provision
2. 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.
Conformity with State Statute provision
Occupational Disability policy
Joint Life (aka "First to die") policy
Equity Indexed annuity
3. 1: Req. - unless self-employed; 2: 7-day wait for disability benefits; 3: Premium based on ex-mod; 4: Rates approved by CDI; 5: to sell - must satisfy education reqs.
CA Work. Comp. Statutes
Age Discrimination in Employment Act (ADEA)
Insurability Type Conditional receipt
Pure risk vs. Speculative risk
4. Specialized policy covering diagnostic & preventative dental care; often no deductible; co-insurance; expensive; may be included w/ medical plan.
Family Maintenance policy
Modified Premium Whole Life policy
Dental Plan
Reinsurance
5. Agents - represent Insurer; Brokers - represent themselves & Insured; Solicitors - represent one agent to solicit leads.
Family or Dependents rider
Types of Licensed Producers
Preferred Provider Organization (PPO)
Insurability Type Conditional receipt
6. Privately-sold policies to provide benefits not covered by Medicare; divided into 12 plans listed alphabetically A - L; 30-day free look; guaranteed renewable.
Law of Large Numbers
Equity Index Whole Life policy
Key Employee policy
Medicare Supplement or Medigap policy
7. Dividends are NOT taxable but interest is. Loan interest is NOT tax-deductible. Interest paid by Insurer on retained funds is taxable.
Spendthrift provision
Tax implications of Dividends - Loans & Interest
Total disability (any-occupational definition)
Preferred Provider Organization (PPO)
8. 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.
Tax implications of Disability policy
Viatical Settlement Provider (VSP)
Whole (aka Permanent or Straight) Life policy
Parole Pardon Rule
9. Compensates business for loss due to death or disability of key employee; premiums not deductible but benefits tax-free.
Basic Medical plan
Applicant Representations vs. Warranties
Market Value Adjusted (aka Modified Guaranteed) annuity
Key Employee policy
10. Same as WL but policy owner can adjust death benefit w/ corresponding premium adjustments; mostly obsolete.
Departments of an Insurer
Cost of Living Adjustment (COLA) Disability rider
Adjustable Whole Life policy
7 Pay Test
11. 'The inability to perform ANY reasonable occupation based on education - training or experience'.
Total disability (more restrictive definition)
Cash value
Preferred Provider Organization (PPO)
Time Limit on Certain Defenses provision
12. Written contract that provides INCOME @ high interest rate for fixed period OR for annuitant's lifetime w/ possible death benefit.
Waiver of Premium (Waiver of Cost of Insurance) rider
Trial Application (aka Request for Offer)
Notice of Claim provision
Annuity
13. 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.
Limited Pay Whole Life policy
Misstatement of Age/Sex provision
CHAMPUS (aka TriCare)
Waiver of Premium provision
14. Same as WL but w/ Level Term rider; upon death - pays monthly income for FULL term AFTER which pays full death benefit.
Family Maintenance policy
Employee Retirement Income Security Act (ERISA)
Medicare Part A & B "Gaps"
Non-forfeiture options for WL policy
15. Provides accidental death benefit @ full $ of "principal sum". Dismemberment is paid only @ 50% principal sum ("capital sum").
Common Disaster (Simultaneous Death Act) clause/provision
Cross Purchase Plan
Business Overhead Expense (BOE) Disability policy
Accidental Death & Dismemberment (AD&D) Disability rider
16. Mathematical law stating the larger # of occurrences - the more predictable the losses; used to calculate premiums.
Law of Large Numbers
Modified Premium Whole Life policy
Departments of an Insurer
Rehabilitation rider
17. Pre-existing illness/injury; Waiting period; Elimination period; Probationary period; Benefits - Exclusions - Limitations; Underwriting reqs.
Grace Period provision
Preferred Provider Organization (PPO)
Errors & Omissions (E&O)
Considerations in replacing Health insurance
18. 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.
Universal (aka Flexible Premium Adjustable) Life policy (1 of 4)
Pure risk vs. Speculative risk
Free Look provision
Medicare
19. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.
Approval Type Conditional receipt
Business Continuation (aka Buy-Sell) policy
Relation of Earnings to Insurance provision
Levels of Long Term Care provided
20. Insurance purchased by other Insurer(s) to spread or diversify risk; promotes industry stability.
Reinsurance
Dread Disease policy
Types of Term Life policies
Entire Contract provision
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
Settlement options for Life policy (2 of 2)
Exclusions to Work. Comp.
Business Continuation (aka Buy-Sell) policy
Elimination (aka Waiting) period
22. Death benefit determined by Insured's financial goals & needs (minus assets).
Needs approach (most common)
Insurance contract characteristics (2 of 2)
Multiple Employer Trust (MET) aka Multiple Employer Welfare Association (MEWA)
Settlement options for Life policy (2 of 2)
23. Time period preceding each disability during which benefits are not paid; longer elimination periods = cheaper premium.
Elimination (aka Waiting) period
Cross Purchase Plan
Dividend options
Graded Premium Whole Life policy
24. 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.
Convertibility provision
Common Life Exclusions
Adjustable Whole Life policy
Modified Premium Whole Life policy
25. Periodic return of premium to policy owners from Mutual (Par) Companies; not guaranteed & not taxable as income; may be used in 6 ways.
Rate (as defined by CIC)
Disability Income policy
Tax implications of an Annuity (1 of 2)
Dividends
26. Excludes coverage for specific injury/illness either temporarily or permanently in order to eliminate pre-existing condition.
Equity Indexed annuity
Impairment (Exclusion) rider
Annuity Classifications (1 of 5): How premium is paid
Types of Insurers (miscellaneous)
27. If 2 or more family members are injured in the same accident - only payment of a single deductible is required.
Reinstatement provision
Elements to contract
Premium modes
Common Accident provision
28. A lapsed policy may be reinstated if not longer than 3-5 yrs. - & proof of insurability re-established - & back premiums + interest paid.
Reinstatement provision
Types of Renewability provisions
Indeterminate Premium Whole Life policy
Blue Cross/Blue Shield
29. Same as WL but w/ adjustable death benefit (& corresponding premium) & over-fund option but w/ annually renewable term (ART).
Universal (aka Flexible Premium Adjustable) Life policy (1 of 4)
Reinsurance
Settlement options for Life policy (1 of 2)
Rate (as defined by CIC)
30. 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
31. Federal law which prohibits companies w/ 20+ employees from denying work & medical benefits to employees due to age.
Binding receipt (aka Temporary Insurance Agreement)
Premium modes
Common Disability Exclusions
Age Discrimination in Employment Act (ADEA)
32. Authorized (admitted) - can conduct business in state; Unauthorized (non-admitted) - cannot conduct business in state (w/ one exception).
Health Reimbursement Account (HRA)
Viatical Settlement Provider (VSP)
Types of Insurers (by authorization)
Annuity Classifications (2 of 5): When benefits begin
33. Business continuation funding plan whereby each partner agrees to buy Life policies on each other - but not themselves.
Blackout Period
Small Employer Medical Expense plan
Penalties for violating AIDS/HIV privacy laws
Cross Purchase Plan
34. 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
Types of hazards
Business Overhead Expense (BOE) Disability policy
Trusts
35. Govt. organization providing health care benefits for dependents of military personnel.
Loss of Earnings Test
Medicare Part A & B "Gaps"
CHAMPUS (aka TriCare)
Requirements to sell variable life products
36. Allows Insured to increase death benefit w/out medical exam (subject to age max.) w/ additional premium rate determined @ attained age.
Flexible Spending Account (FSA)
Guaranteed Insurability Life rider
Phases of an annuity
Experience vs. Community rating in Group Health plan
37. Same as WL but death benefit increases annually - linked to Consumer Price Index; premium increases annually OR is set high from start.
Types of Agency Authority
Equity Index Whole Life policy
Variable Universal Life policy
Group Disability plan
38. Disability income is based on "earned income" (salary - bonus - commission) - not unearned income (interest - investment - rents).
Key Employee policy
Partial disability rider
Flexible Spending Account (FSA)
Loss of Earnings Test
39. Life license + NASD (FINRA) Series 6 or 7.
Renewability provision
Blue Cross/Blue Shield
Requirements to sell variable life products
Exclusions to Work. Comp.
40. War; elective cosmetic surgery; routine dental; work. comp.-covered claims; self-inflicted (intentional); gov't. facility treatment; LTC; private nursing.
Dividend options
Exclusions for Major Medical plan
Comprehensive Major Medical plan
Presumptive disability
41. An irrevocable IRS classification of a policy (determined by the 7 Pay Test) whereby tax advantages are lost for all distributions ONLY.
Key Employee policy
Annuity surrender charges
Types of Insurers (by authorization)
Modified Endowment Contract (MEC)
42. Provides accidental death benefit @ full $ of "principal sum". Dismemberment is paid only @ 50% principal sum ("capital sum").
COBRA Time Limitations
Accidental Death & Dismemberment (AD&D) Life policy
Workers' Compensation insurance
Elements to contract
43. Potential circumstance that could cause a loss; measured in dollars.
Notice of Claim provision
Permanent vs. Temporary disability
Loss exposure
Tax implications of Disability policy
44. No-cost provision that authorizes Insurer to borrow from cash value to pay unpaid premiums after grace period; must ask for @ app. time.
Return of Cash Value rider
Tax implications of medical plans
Medicare Part A & B "Gaps"
Automatic Premium Loan (APL) provision
45. Excludes coverage for suicide during 1st 2 yrs. ONLY but - if it does - all premiums must be returned to beneficiary.
Suicide clause/provision
Supplemental Major Medical plan
Trusts
COBRA Time Limitations
46. Provides 24 hr. health coverage both "on" & "off" job - but may cause coverage duplication & coordination challenges.
Types of Insurers (by domicile)
24 Hour Coverage (CA)
Types of hazards
Business Continuation (aka Buy-Sell) Disability policy
47. 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
Joint Life (aka "First to die") policy
Annuity Classifications (4 of 5): Disposition "pay-out" of proceeds
Elimination (aka Waiting) period
Types of Term Life policies
48. Reappearance of disability w/in 6 mth. period after "recovery" from same disability is considered recurrence - not new disability.
Binding receipt (aka Temporary Insurance Agreement)
Business Overhead Expense (BOE) Disability policy
Payment of Premium provision
Recurrent disability clause/provision
49. 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.
Employer-Administered plan
Rate (as defined by CIC)
Dread Disease policy
Partial disability rider
50. Earned premium is $ paid for coverage to date. Unearned premium is $ paid & returnable due to coverage not provided.
Waiver of Premium provision
Return of Premium rider
Term Life policy
Earned vs. Unearned premium