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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. Temp. coverage for set duration w/ death benefit ONLY (no cash value) - offers largest $ for lowest premium; renewable; convertible.
Term Life policy
Medicaid/Medi-Cal
Guaranteed Insurability Life rider
Group Disability plan
2. Allows for use of HMO/PPO or other private carrier to provide expanded benefits @ additional premium & if enrolled in BOTH Parts A & B.
Earned vs. Unearned premium
Elimination (aka Waiting) period
Medicare Part C (aka Medicare Advantage)
CA Work. Comp. Statutes
3. Death benefit determined by Insured's projected lost earnings potential.
Annuity Classifications (2 of 5): When benefits begin
Human Life Value approach
Reinsurance
Dividend options
4. Same as WL but death benefit increases annually - linked to Consumer Price Index; premium increases annually OR is set high from start.
Equity Index Whole Life policy
Entire Contract provision
Indeterminate Premium Whole Life policy
Policy delivery
5. A lapsed policy may be reinstated if not longer than 3-5 yrs. - & proof of insurability re-established - & back premiums + interest paid.
Suicide clause/provision
Reinstatement provision
Payment of Premium provision
Social Security Benefit (Supplement) rider
6. Responsible adult trustee designated to manage death benefits for minor child beneficiary until adulthood.
Blue Cross/Blue Shield
Annuity Classifications (1 of 5): How premium is paid
Penalties for violating AIDS/HIV privacy laws
Trusts
7. Govt. organization providing health care benefits for dependents of military personnel.
Insurance contract characteristics (2 of 2)
Total disability (any-occupational definition)
CHAMPUS (aka TriCare)
Types of Medical Plans
8. Intentional OR unintentional failure to disclose material underwriting facts that should have been disclosed; grounds for policy rescission.
Risk management
Employer Liability
Concealment
Trial Application (aka Request for Offer)
9. No-cost provision that authorizes Insurer to borrow from cash value to pay unpaid premiums after grace period; must ask for @ app. time.
Variable Life policy (1 of 2)
Graded Premium Whole Life policy
Automatic Premium Loan (APL) provision
Rehabilitation rider
10. Federal law which prohibits companies w/ 20+ employees from denying work & medical benefits to employees due to age.
Estoppel
Tax implications of an Estate
CHAMPUS (aka TriCare)
Age Discrimination in Employment Act (ADEA)
11. Physical - slippery floor; Moral - dishonest acts; Morale - carelessness or recklessness.
Types of Renewability provisions
Types of hazards
Endowment Life policy
Equity Index Whole Life policy
12. Covers disabilities occurring ONLY "off" job; benefits do not overlap work. comp. (i.e. Group plan).
Annuity Classifications (5 of 5): # of lives
Insurance contract characteristics (1 of 2)
Point of Service plan
Non-Occupational Disability policy
13. If 2 or more family members are injured in the same accident - only payment of a single deductible is required.
Types of Insurers (by ownership)
Common Accident provision
Disability Income policy
Modified Endowment Contract (MEC)
14. Provides hospital insurance automatically @ age 65 (if FICA qualified) @ no fee but may have deductible & co-pay.
Medicare Part A (aka Hospital Insurance or HI)
Retrocession
Total disability (as commonly defined)
Universal (aka Flexible Premium Adjustable) Life policy (1 of 4)
15. 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.
Applicant Representations vs. Warranties
Relation of Earnings to Insurance provision
Parole Pardon Rule
Partial disability rider
16. 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.
Total disability (more restrictive definition)
Group Disability plan
CHAMPUS (aka TriCare)
CA Work. Comp. Statutes
17. Group plan initially self-funded by employer (like SIR); after which - group plan Insurer covers (up to policy limit); requires TPA.
Pure risk vs. Speculative risk
Medical cost containment (aka Managed care)
Waiver of Premium provision
Employer-Administered plan
18. Receipt whereby coverage incepts immediately upon submission of full consideration - unless declined & premium refunded.
Binding receipt (aka Temporary Insurance Agreement)
Trial Application (aka Request for Offer)
Universal (aka Flexible Premium Adjustable) Life policy (2 of 4)
Tax implications of Death Benefit & Cash Value
19. A company providing lump sum buyout (50-90% of total) of Life policy; becomes owner & beneficiary & assumes premium payments; usually terminally ill viator.
Viatical Settlement Provider (VSP)
Underwriting risk categories
Phases of an annuity
Medicare Part C (aka Medicare Advantage)
20. Covers disabilities occurring both "on" AND "off" job; "on" job benefits paid in addition to work. comp. - if applicable (i.e. individual plan).
Types of Insurers (miscellaneous)
Occupational Disability policy
Key Employee policy
Accelerated Benefits (aka Terminal Illness or Living Benefits) rider
21. Time period preceding each disability during which benefits are not paid; longer elimination periods = cheaper premium.
Equity Indexed annuity
Elimination (aka Waiting) period
Accelerated Benefits (aka Terminal Illness or Living Benefits) rider
Indemnify
22. 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)
Dependent coverage
Medicaid/Medi-Cal
Insurability Type Conditional receipt
23. Experience - rates impacted by actual prior claim experience of actual group; Community - identical rates used for entire community - regardless of experience.
Experience vs. Community rating in Group Health plan
Social Security (aka Old Age Survivors Disability Health Insurance or OASDHI)
Civil Rights/Pregnancy Discrimination Act
Survivorship (aka "Last to die") policy
24. Upon death - death benefit is paid + the aggregate of cash value accumulated to date; add-on to WL policy ONLY.
Adjustable Whole Life policy
Types of Accident & Health (A&H) providers
Limited Pay Whole Life policy
Return of Cash Value rider
25. Policy provisions must conform to state regulations where policy is sold.
Business Overhead Expense (BOE) Disability policy
Conformity with State Statute provision
Types of Insurers (by sector)
Point of Service plan
26. Authorized (admitted) - can conduct business in state; Unauthorized (non-admitted) - cannot conduct business in state (w/ one exception).
Spendthrift provision
Annuity Classifications (2 of 5): When benefits begin
Impairment (Exclusion) rider
Types of Insurers (by authorization)
27. Req. by CA statute & may provide workers coverage for action-over claims.
Misstatement of Age/Sex provision
Partial disability rider
Waiver of Premium provision
Employer Liability
28. Allows Insured to increase death benefit w/out medical exam (subject to age max.) w/ additional premium rate determined @ attained age.
Phases of an annuity
Guaranteed Insurability Life rider
Common Disaster (Simultaneous Death Act) clause/provision
Law of Large Numbers
29. No deductible coverage for: daily room/board; ancillary costs; surgeon &/or physician expense (for added premium).
Term Life policy
Tax implications of an Estate
Basic Medical plan
Current Assumption (aka Interest-Sensitive) Whole Life policy
30. Partially state-funded benefits for low-income people whereby cost of care is shared between state & recipient - based on income.
Medi-Cal Share Cost plan
Payment of Premium provision
Parole Pardon Rule
Accelerated Benefits (aka Terminal Illness or Living Benefits) rider
31. Permanent - not recoverable (spinal cord injury); Temporary - recoverable (temp. illness/injury - broken limb).
Tax implications of medical plans
Total disability (more restrictive definition)
Parole Pardon Rule
Permanent vs. Temporary disability
32. Mathematical law stating the larger # of occurrences - the more predictable the losses; used to calculate premiums.
Retrocession
Family policy
Equity Indexed annuity
Law of Large Numbers
33. Allows Insured to increase benefit w/out medical exam (subject to age max.) w/ additional premium rate determined @ attained age; must prove income increase.
Guaranteed Insurability (aka Additional Purchase or Future Increase) Disability rider
Life insurance policy
Requirements to sell variable life products
Beneficiary provisions
34. Life license + NASD (FINRA) Series 6 or 7.
Medicaid/Medi-Cal
Incontestability clause/provision
Partial disability rider
Requirements to sell variable life products
35. PURELY employer-funded account to reimburse employees for qualified medical expenses not covered by group health plan.
Dread Disease policy
Social Security Benefit (Supplement) rider
Accidental Death & Dismemberment (AD&D) Disability rider
Health Reimbursement Account (HRA)
36. Two death benefit options - Option A: death benefit ONLY; Option B: death benefit + cash value; death benefit NOT guaranteed.
Viatical Settlement Provider (VSP)
Residual disability rider
Civil Rights/Pregnancy Discrimination Act
Universal (aka Flexible Premium Adjustable) Life policy (4 of 4)
37. 1: Fixed - guaranteed fixed monthly income & fixed interest rate; 2: Variable - unguaranteed; monthly income varies based on stocks/bond returns.
Exclusions to Work. Comp.
Annuity Classifications (3 of 5): Source of income
Medicare Part B (aka Supplemental Medical Insurance or SMI)
Common Disaster (Simultaneous Death Act) clause/provision
38. Period of time following any children's survivor benefit & before benefits are provided to employee's widow/widower.
Blackout Period
Variable Universal Life policy
Health Maintenance Organization (HMO)
Cost of Living Adjustment (COLA) Life rider
39. Same as WL but can be "paid-up" early by paying larger premium for shorter payment period (i.e. 10 Pay Life - 20 Pay Life).
Enhanced Ordinary (aka Extraordinary) Whole Life policy
Policy delivery
Limited Pay Whole Life policy
Insurance contract characteristics (2 of 2)
40. Excludes coverage for suicide during 1st 2 yrs. ONLY but - if it does - all premiums must be returned to beneficiary.
Policy loans
Primary Insurance Amount (PIA)
Tax implications of Disability policy
Suicide clause/provision
41. Mathematical calculation based on overall FICA contributions used to determine retirement/disability/survivorship benefit.
Binding receipt (aka Temporary Insurance Agreement)
Primary Insurance Amount (PIA)
Blue Cross/Blue Shield
Types of Insurers (miscellaneous)
42. Revocable - changeable anytime w/ Change of Beneficiary Form; Irrevocable - not changeable w/out beneficiary permission.
Tax implications of Death Benefit & Cash Value
Medicare Part D
Waiver of Premium provision
Revocable vs. Irrevocable beneficiary
43. Policy owner has right to determine mode of premium payment but Insurer can charge admin. fee if not annual.
Medicare Part B (aka Supplemental Medical Insurance or SMI)
Annuity
Types of Term Life policies
Payment of Premium provision
44. Prohibited w/ regard to testing for people of same class; test results must remain confidential; coverage may be declined (once discovered).
Annuity surrender charges
Health Reimbursement Account (HRA)
AIDS/HIV discrimination
Retrocession
45. Multiple small employers w/ common affiliation (trade assoc. OR Chamber of Commerce) band together to purchase group plan.
Medicare
Multiple Employer Trust (MET) aka Multiple Employer Welfare Association (MEWA)
Claim Form (aka Proof of Loss Form) provision
Payor (aka Waiver of Payor's Premium) rider
46. Tendency of poorer risks to seek insurance.
Elements to contract
Adverse selection
Tax implications of Disability policy
Notice of Claim provision
47. Provides benefit during Social Security "black-out" period - up to 1 yr.
Dread Disease policy
Transplant/Cosmetic Surgery rider
Rate (as defined by CIC)
Social Security Benefit (Supplement) rider
48. Prepaid med. benefits for "subscribers" @ approved facilities; many non-profit; Blue Cross - Hospital stays; Blue Shield - M.D. costs.
Transplant/Cosmetic Surgery rider
Universal (aka Flexible Premium Adjustable) Life policy (4 of 4)
Annuity surrender charges
Blue Cross/Blue Shield
49. Excludes coverage for specific injury/illness either temporarily or permanently in order to eliminate pre-existing condition.
AIDS/HIV discrimination
Factors that determine premium
Impairment (Exclusion) rider
Current Assumption (aka Interest-Sensitive) Whole Life policy
50. Level - fixed death benefit - premium fixed until renewal; Decreasing - death benefit decreases over term - premium fixed until renewal; Increasing - death benefit increases over term - premium fixed until renewal.
Impairment (Exclusion) rider
Rehabilitation rider
Types of Term Life policies
Supplemental Major Medical plan