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. Provides supplemental coverage for physician/surgeon fees if enrolled (during enrollment period ONLY) & pay monthly premium w/ deductible and co-insurance.
Medicare Part B (aka Supplemental Medical Insurance or SMI)
Indeterminate Premium Whole Life policy
Accelerated Benefits (aka Terminal Illness or Living Benefits) rider
Types of Insurers (by authorization)
2. Underwriting - determines insurability; Marketing/Sales - determines products; Actuarial - determines rates; Claims - investigates/pays claims.
Blue Cross/Blue Shield
Insurable interest
Transplant/Cosmetic Surgery rider
Departments of an Insurer
3. After 2-3 yrs. - Whole Life policy equity builds tax-deferred @ fixed interest rate until it equals death benefit; borrowable but taxable.
Family Maintenance policy
Cross Purchase Plan
Residual disability rider
Cash value
4. 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
Cost of Living Adjustment (COLA) Disability rider
Accidental Death (aka Multiple Indemnity) rider
Exclusions to Work. Comp.
Change of Occupation provision
5. 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.
Insurer (as defined by CIC)
Types of hazards
Proof of Loss provision
Beneficiary provisions
6. Revocable - changeable anytime w/ Change of Beneficiary Form; Irrevocable - not changeable w/out beneficiary permission.
Time Limit on Certain Defenses provision
Considerations in replacing Health insurance
Health Reimbursement Account (HRA)
Revocable vs. Irrevocable beneficiary
7. Periodic return of premium to policy owners from Mutual (Par) Companies; not guaranteed & not taxable as income; may be used in 6 ways.
Dividends
Recurrent disability clause/provision
Modified Endowment Contract (MEC)
Medicaid/Medi-Cal
8. Federal law to protect Federal employees' (& their beneficiaries') pension - group insurance - & welfare benefits.
Dread Disease policy
Conformity with State Statute provision
Employee Retirement Income Security Act (ERISA)
Exclusions for Major Medical plan
9. 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.
Retrocession
Health Maintenance Organization (HMO)
Juvenile Life (aka Jumping Juvenile) policy
Plans A-L of Medical Supplement or Medigap
10. Prohibited w/ regard to testing for people of same class; test results must remain confidential; coverage may be declined (once discovered).
Total disability (more restrictive definition)
Presumptive disability
Rescission
AIDS/HIV discrimination
11. Provides disability income during surgery recovery from life-threatening condition (& sometimes cosmetic surgery).
Reinstatement provision
24 Hour Coverage (CA)
Transplant/Cosmetic Surgery rider
Types of hazards
12. If Insured & primary beneficiary die due to same act (w/in 14 days) - primary assumed 1st to die & contingent beneficiary paid death benefit.
Common Disaster (Simultaneous Death Act) clause/provision
Business Overhead Expense (BOE) Disability policy
Annuity
Types of Insurers (miscellaneous)
13. Process whereby a reinsurer reinsures w/ another reinsurer.
Retrocession
Family or Dependents rider
Binding receipt (aka Temporary Insurance Agreement)
Types of Renewability provisions
14. Agreement - Offer & acceptance; Consideration - application + premium; Legal capacity - licensed &/or competent; Legal purpose - public good.
Indemnify
Elements to contract
Notice of Claim provision
Revocable vs. Irrevocable beneficiary
15. Provides % of monthly income benefit if Insured becomes disabled due to illness or accident.
Spendthrift provision
Disability Income policy
Reinstatement provision
Comprehensive Major Medical plan
16. Same as WL but w/ Decreasing Term rider; upon death - pays monthly income for REMAINING term AFTER which pays full death benefit.
Adverse selection
Medicare Part A (aka Hospital Insurance or HI)
Common Accident provision
Family Income policy
17. Time period preceding each disability during which benefits are not paid; longer elimination periods = cheaper premium.
Adjustable Whole Life policy
Estoppel
Elimination (aka Waiting) period
Notice of Claim provision
18. Experience - rates impacted by actual prior claim experience of actual group; Community - identical rates used for entire community - regardless of experience.
Workers' Compensation insurance
Errors & Omissions (E&O)
Employer-Administered plan
Experience vs. Community rating in Group Health plan
19. Same as WL but death benefit decreases each yr. w/ dividends paid annually to offset decrease.
Policy delivery
Key Employee Disability policy
Applicant Representations vs. Warranties
Enhanced Ordinary (aka Extraordinary) Whole Life policy
20. Hybrid of HMO & PPO w/ greater flexibility on choosing specialists outside network w/ benefits still provided but @ higher co-pay.
Point of Service plan
Modified Premium Whole Life policy
Conformity with State Statute provision
Flexible Spending Account (FSA)
21. Waives premium on Life policy for minor child until age 21 in event premium payor dies or becomes disabled.
Warning
: Invalid argument supplied for foreach() in
/var/www/html/basicversity.com/show_quiz.php
on line
183
22. Fixed premium w/ guaranteed min. death benefit that may increase due to higher than expected investment returns.
Dread Disease policy
Universal (aka Flexible Premium Adjustable) Life policy (2 of 4)
Variable Life policy (2 of 2)
Legal Action provision
23. Provides increased death benefit if death occurs w/in 90 days & as result of accident; relatively INexpensive add-on.
Accidental Death (aka Multiple Indemnity) rider
Experience vs. Community rating in Group Health plan
Total disability (more restrictive definition)
Rehabilitation rider
24. Must be delivered in person or by certified - registered or 1st-class mail w/ signature - unless waived by Insurance Commissioner.
Underwriting risk categories
Policy delivery
Common Disaster (Simultaneous Death Act) clause/provision
Return of Premium rider
25. Provides for continued operation of business if partner dies - by allowing surviving partner(s) to buy deceased partner's interest in business.
Whole (aka Permanent or Straight) Life policy
Business Continuation (aka Buy-Sell) policy
Medicaid/Medi-Cal
Payment of Premium provision
26. Disability income is based on "earned income" (salary - bonus - commission) - not unearned income (interest - investment - rents).
Binding receipt (aka Temporary Insurance Agreement)
Loss of Earnings Test
Reinstatement provision
Enhanced Ordinary (aka Extraordinary) Whole Life policy
27. Same as Universal Life but cash value put in investment vehicles chosen by policy owner (stocks - bonds - munis.); cash value NOT guaranteed.
Variable Universal Life policy
Medicare Part A (aka Hospital Insurance or HI)
Survivorship (aka "Last to die") policy
Life insurance policy
28. Same as WL but cash value put in investment vehicles chosen by policy owner (stocks - bonds - munis.); cash value NOT guaranteed.
Approval Type Conditional receipt
Variable Life policy (1 of 2)
Earned vs. Unearned premium
Residual disability rider
29. Same as Term Life but provides living benefit (endowment) to policy owner if Insured survives entire term.
Primary Insurance Amount (PIA)
Endowment Life policy
Dental Plan
Valid life insurance contracts must identify...
30. 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;
Social Security (aka Old Age Survivors Disability Health Insurance or OASDHI)
Tax implications of an Estate
Mortality vs. Morbidity tables
Employee Retirement Income Security Act (ERISA)
31. Reappearance of disability w/in 6 mth. period after "recovery" from same disability is considered recurrence - not new disability.
Key Employee Disability policy
Recurrent disability clause/provision
Types of Insurers (by domicile)
Renewability provision
32. Dividends are NOT taxable but interest is. Loan interest is NOT tax-deductible. Interest paid by Insurer on retained funds is taxable.
Approval Type Conditional receipt
Tax implications of Dividends - Loans & Interest
Primary Insurance Amount (PIA)
Cost of Living Adjustment (COLA) Life rider
33. Upon notice - Insurer must provide Claim Form (Proof of Loss Form) to Insured w/in 15 days.
Exclusions for Major Medical plan
Permanent vs. Temporary disability
Occupational Disability policy
Claim Form (aka Proof of Loss Form) provision
34. Business continuation funding plan whereby each partner agrees to buy Life policies on each other - but not themselves.
Cross Purchase Plan
Limited Pay Whole Life policy
Elements to contract
Entire Contract provision
35. Private sector (Commercial) - provides LA&H - P&C - & LTC; Public sector (Gov't) - provides flood - work. comp. - Medicare/Medicaid - Group Life (SGLI/FEGLI).
Types of hazards
7 Pay Test
Adjustable Whole Life policy
Types of Insurers (by sector)
36. 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
Approval Type Conditional receipt
Recurrent disability clause/provision
Market Value Adjusted (aka Modified Guaranteed) annuity
37. Partially state-funded benefits for low-income people whereby cost of care is shared between state & recipient - based on income.
CHAMPUS (aka TriCare)
Medi-Cal Share Cost plan
Insurer (as defined by CIC)
Permanent vs. Temporary disability
38. The state in which the contract is accepted or delivered is the state that possesses regulatory jurisdiction over Group plan.
Variable Life policy (1 of 2)
Transplant/Cosmetic Surgery rider
Tax implications of medical plans
Doctrine of Comity
39. WL policy covering 2 or more Insureds but payable upon death of FIRST Insured - after which policy ends.
Joint Life (aka "First to die") policy
Family Income policy
Flexible Spending Account (FSA)
Comprehensive Major Medical plan
40. Insured can seek legal action against Insurer for denial of claim only after 60 days and up to 3 yrs. after providing proof of loss.
Waiver of Premium (Waiver of Cost of Insurance) rider
Palliative vs. Curative care
Legal Action provision
Dental Plan
41. Receipt whereby coverage incepts conditionally upon submission of full consideration and that all underwriting reqs. are met.
Automatic Premium Loan (APL) provision
Annuity Classifications (4 of 5): Disposition "pay-out" of proceeds
Accidental Death & Dismemberment (AD&D) Disability rider
Insurability Type Conditional receipt
42. Allows Insured to increase death benefit w/out medical exam (subject to age max.) w/ additional premium rate determined @ attained age.
Medi-Cal Share Cost plan
Needs approach (most common)
Guaranteed Insurability Life rider
Health Reimbursement Account (HRA)
43. 1: Skilled nursing care; 2: Intermediate care; 3: Custodial care; 4: Home health care.
Split Dollar Plan
Multiple Employer Trust (MET) aka Multiple Employer Welfare Association (MEWA)
Levels of Long Term Care provided
Dividend options
44. Peril is the CAUSE of loss. Hazard is a condition that increases LIKELIHOOD of loss.
Supplemental Major Medical plan
Peril vs. Hazard
Insurance contract characteristics (1 of 2)
Loss exposure
45. 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
46. 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
Insurance contract characteristics (1 of 2)
Elimination (aka Waiting) period
Medicare Part C (aka Medicare Advantage)
47. Prepaid med. benefits for "subscribers" @ approved facilities; many non-profit; Blue Cross - Hospital stays; Blue Shield - M.D. costs.
Blue Cross/Blue Shield
Annuity Classifications (2 of 5): When benefits begin
Accidental Death & Dismemberment (AD&D) Disability rider
Group Disability plan
48. Prepaid med. benefits for members ONLY w/ approved primary care M.D. (HMO employee); focus on preventative care; low co-pay.
Errors & Omissions (E&O)
Suicide clause/provision
Cross Purchase Plan
Health Maintenance Organization (HMO)
49. Same as WL but premium low for 1st 5 yrs. - THEN has annual premium increases for set # yrs. - THEN level premium.
Age Discrimination in Employment Act (ADEA)
Preferred Provider Organization (PPO)
Graded Premium Whole Life policy
Joint Life (aka "First to die") policy
50. 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.
Total disability (as commonly defined)
Types of Renewability provisions
Return of Premium rider
Partial disability rider