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. Expands individual WL policy to include Term Life for dependents (spouse - children - etc.).
Multiple Employer Trust (MET) aka Multiple Employer Welfare Association (MEWA)
Family or Dependents rider
Residual disability rider
Binding receipt (aka Temporary Insurance Agreement)
2. Fixed premium w/ guaranteed min. death benefit that may increase due to higher than expected investment returns.
Approval Type Conditional receipt
Variable Life policy (2 of 2)
Annuity
Permanent vs. Temporary disability
3. Non-qualified Annuity - Non-deductible contributions & tax-deferred growth. At pay-out - tax-free principal but taxable growth.
Social Security Benefit (Supplement) rider
Life insurance policy
Key Employee policy
Tax implications of an Annuity (1 of 2)
4. Mathematical law stating the larger # of occurrences - the more predictable the losses; used to calculate premiums.
Law of Large Numbers
Legal Action provision
Group Disability plan
Grace Period provision
5. Benefits NOT taxable; employer-paid premiums deductible to employer; individual plans not deductible unless over 7 1/2% of adjusted gross income - then excess deductible.
Disability Income policy
Civil Rights/Pregnancy Discrimination Act
Tax implications of medical plans
Types of Insurers (by sector)
6. Provides for continued operation of business if partner becomes disabled - by allowing other partner(s) to buy disabled partner's interest in business.
Business Continuation (aka Buy-Sell) Disability policy
Change of Occupation provision
Business Continuation (aka Buy-Sell) policy
Penalties for violating AIDS/HIV privacy laws
7. 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
Medicare Supplement or Medigap policy
Free Look provision
Insurer (as defined by CIC)
Exclusions to Work. Comp.
8. No deductible coverage for: daily room/board; ancillary costs; surgeon &/or physician expense (for added premium).
Proof of Loss provision
Insurance contract characteristics (1 of 2)
Basic Medical plan
Levels of Long Term Care provided
9. Same as Term Life but provides living benefit (endowment) to policy owner if Insured survives entire term.
CHAMPUS (aka TriCare)
Law of Large Numbers
Endowment Life policy
Joint Life (aka "First to die") policy
10. 1: Individual; 2: Joint - multiple annuitants paid until 1st dies; 3: Joint & Survivor - multiple annuitants paid until 1st dies THEN survivors paid but @ reduced $.
Departments of an Insurer
Key Employee policy
Employer-Administered plan
Annuity Classifications (5 of 5): # of lives
11. 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.
Medicare Part D
COBRA Time Limitations
Whole (aka Permanent or Straight) Life policy
Cost of Living Adjustment (COLA) Disability rider
12. 'The inability to perform your OWN normal occupation or daily duties'.
Loss exposure
Total disability (as commonly defined)
Convertibility provision
Universal (aka Flexible Premium Adjustable) Life policy (4 of 4)
13. Provides for continued operation of business if partner dies - by allowing surviving partner(s) to buy deceased partner's interest in business.
Supplemental Major Medical plan
Concealment
Business Continuation (aka Buy-Sell) policy
Fraud
14. Same as WL but premium low for set # yrs. - THEN premiums vary (+ or -) based on Insurer's investment returns - w/ Gmax.
Tax implications of medical plans
Earned vs. Unearned premium
Presumptive disability
Indeterminate Premium Whole Life policy
15. Part A - Inpatient hospital deductibles vary on # of days; limited reserve days; finite benefit; 1st 3 pints blood; Part B - 20% co-payment.
Rate (as defined by CIC)
Medicare Part A & B "Gaps"
Total disability (as commonly defined)
Age Discrimination in Employment Act (ADEA)
16. War - 2 types; Suicide (1st 2 yrs.); Aviation (non-commercial); Hazardous hobbies; Criminal acts; Alcohol/Drug influenced.
Loss exposure
Common Life Exclusions
Plans A-L of Medical Supplement or Medigap
Employee Retirement Income Security Act (ERISA)
17. Same as WL but premium low for 1st 5 yrs. - THEN has annual premium increases for set # yrs. - THEN level premium.
Types of Accident & Health (A&H) providers
Graded Premium Whole Life policy
Total disability (as commonly defined)
Approval Type Conditional receipt
18. Fraternal - non-profit - members only; Reciprocal - unincorp'd org. - members insure each other; Lloyd's Assoc. - groups sharing risks; Surplus lines - special market risks.
Types of Renewability provisions
Types of Insurers (miscellaneous)
Key Employee policy
Tax implications of an Estate
19. Part of IRS Section 125 cafeteria plan - which allows pre-tax payroll deductions for qualified medical expenses or child/dependent care.
Limited Pay Whole Life policy
Graded Premium Whole Life policy
Annuity Classifications (5 of 5): # of lives
Flexible Spending Account (FSA)
20. Earned premium is $ paid for coverage to date. Unearned premium is $ paid & returnable due to coverage not provided.
Small Employer Medical Expense plan
Earned vs. Unearned premium
Types of Insurers (by domicile)
Primary Insurance Amount (PIA)
21. 'The inability to perform ANY reasonable occupation based on education - training or experience'.
Total disability (more restrictive definition)
Presumptive disability
Plans A-L of Medical Supplement or Medigap
Pure risk vs. Speculative risk
22. Mortality is the statistical possibility of death @ each age. Morbidity is the statistical possibility & extent of disability @ each age.
Mortality vs. Morbidity tables
Guaranteed Insurability (aka Additional Purchase or Future Increase) Disability rider
Term Life policy
Health Maintenance Organization (HMO)
23. Funding mechanism whereby employer & employee share cost of premium. Upon death - benefit is shared between employer & beneficiary.
Common Life Exclusions
Accidental Death & Dismemberment (AD&D) Disability rider
Types of Accident & Health (A&H) providers
Split Dollar Plan
24. Compensates business for loss due to disability of key employee; premiums not deductible but benefits tax-free.
Convertibility provision
Indemnify
Key Employee Disability policy
Misstatement of Age/Sex provision
25. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.
Blue Cross/Blue Shield
Waiver of Premium (Waiver of Cost of Insurance) rider
Settlement options for Life policy (1 of 2)
Levels of Long Term Care provided
26. If 2 or more family members are injured in the same accident - only payment of a single deductible is required.
Key Employee policy
Insurer (as defined by CIC)
Common Accident provision
Employee Retirement Income Security Act (ERISA)
27. If Insured & primary beneficiary die due to same act (w/in 14 days) - primary assumed 1st to die & contingent beneficiary paid death benefit.
Types of Insurers (by sector)
Accidental Death & Dismemberment (AD&D) Life policy
Common Disaster (Simultaneous Death Act) clause/provision
Family Income policy
28. Pays death benefit until age 100 or death; builds equity (cash value); may be transferred or sold; generally level premium.
Return of Premium rider
Applicant Representations vs. Warranties
Family Maintenance policy
Whole (aka Permanent or Straight) Life policy
29. 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.
Parole Pardon Rule
Reinsurance
Medicare
COBRA Time Limitations
30. Process whereby a reinsurer reinsures w/ another reinsurer.
Retrocession
Small Employer Medical Expense plan
Types of Renewability provisions
Risk management
31. Prepaid med. benefits for "subscribers" @ approved facilities; many non-profit; Blue Cross - Hospital stays; Blue Shield - M.D. costs.
Earned vs. Unearned premium
Blue Cross/Blue Shield
Insurable interest
Tax implications of Death Benefit & Cash Value
32. 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.
Levels of Long Term Care provided
Tax implications of Dividends - Loans & Interest
Partial disability rider
Tax implications of an Estate
33. 1: Surrender for cash value (taxable); 2: Buy equal-benefit paid-up Level Term policy; 3: Buy reduced-benefit paid-up WL policy.
Graded Premium Whole Life policy
Non-forfeiture options for WL policy
Reinsurance
Renewability provision
34. Mathematical calculation based on overall FICA contributions used to determine retirement/disability/survivorship benefit.
Primary Insurance Amount (PIA)
Policy delivery
Flexible Spending Account (FSA)
Indeterminate Premium Whole Life policy
35. War; elective cosmetic surgery; routine dental; work. comp.-covered claims; self-inflicted (intentional); gov't. facility treatment; LTC; private nursing.
Split Dollar Plan
Convertibility provision
Medi-Cal Share Cost plan
Exclusions for Major Medical plan
36. Provides supplemental coverage for physician/surgeon fees if enrolled (during enrollment period ONLY) & pay monthly premium w/ deductible and co-insurance.
Pure risk vs. Speculative risk
Life insurance policy
Medicare Part B (aka Supplemental Medical Insurance or SMI)
Penalties for violating AIDS/HIV privacy laws
37. Savings account for medical expenses; Tax-deductible contributions; tax-deferred growth; tax-free for qualified use; taxable for non-qualified use.
Settlement options for Life policy (1 of 2)
Juvenile Life (aka Jumping Juvenile) policy
Medical Savings Account (MSA) & Health Savings Account (HSA)
Beneficiary provisions
38. 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.
Types of reinsurance
Dividends
Tax implications of Disability policy
Time Limit on Certain Defenses provision
39. Extreme form of Limited Pay Whole Life whereby entire premium is paid in a single payment.
Joint Life (aka "First to die") policy
Guaranteed Insurability Life rider
Single Pay Whole Life policy
Point of Service plan
40. Tendency of poorer risks to seek insurance.
Health Reimbursement Account (HRA)
Adverse selection
Types of Medical Plans
Annuity Classifications (3 of 5): Source of income
41. Actual/Expressed - written powers; Implied - unwritten but customary practices; Apparent - perceived powers.
Impairment (Exclusion) rider
Convertibility provision
Types of Agency Authority
Medicare Supplement or Medigap policy
42. Provides usual & customary business expenses (rent - utilities - salaries - mortgage) if owner becomes disabled; premiums deductible - benefits taxable.
Fraud
Medi-Cal Share Cost plan
Business Overhead Expense (BOE) Disability policy
Notice of Claim provision
43. Palliative - treatment to manage pain; Curative - treatment to cure illness/condition.
Total disability (more restrictive definition)
Annuity Classifications (1 of 5): How premium is paid
Palliative vs. Curative care
Modified Endowment Contract (MEC)
44. Provides accidental death benefit @ full $ of "principal sum". Dismemberment is paid only @ 50% principal sum ("capital sum").
Underwriting risk categories
Common Life Exclusions
Accidental Death & Dismemberment (AD&D) Disability rider
Types of reinsurance
45. Privately-provided or Medicare-provided (if no private carrier) prescription drug plans for qualified individuals but w/ premium - deductible & co-pay.
Blackout Period
Settlement options for Life policy (1 of 2)
Medicare Part D
Reinstatement provision
46. Guaranteed min. interest rate on cash value buildup but possible higher rate if short-term investment returns higher than expected.
Medical cost containment (aka Managed care)
Variable Universal Life policy
Universal (aka Flexible Premium Adjustable) Life policy (3 of 4)
Underwriting risk categories
47. Reappearance of disability w/in 6 mth. period after "recovery" from same disability is considered recurrence - not new disability.
Reinsurance
Penalties for violating AIDS/HIV privacy laws
Family Maintenance policy
Recurrent disability clause/provision
48. Identical to Incontestable Clause in Life policy.
Pure risk vs. Speculative risk
Time Limit on Certain Defenses provision
Requirements to sell variable life products
Claim Form (aka Proof of Loss Form) provision
49. Primary - if 2 or more - equally shared; Contingent (Secondary) - only if primary dead; Tertiary - only if both primary & secondary dead. If none listed - goes to estate.
Revocable vs. Irrevocable beneficiary
Medicare Part D
Health Reimbursement Account (HRA)
Beneficiary provisions
50. Upon death - death benefit is paid + the aggregate of premiums paid to date; add-on to Term policy ONLY.
Preferred Provider Organization (PPO)
Return of Premium rider
Tax implications of Dividends - Loans & Interest
Modified Premium Whole Life policy