ARIZONA LIFE AND HEALTH FINAL EXAM WITH CORRECT DETAILED || || || || || || || || ||
SOLUTIONS
If dividend option choices are offered on a whole life insurance policy, the policy
|| || || || || || || || || || || || ||
MUST - ✔✔contain a statement that dividends are NOT guaranteed
|| || || || || || || || ||
An insured files for an accident and health insurance policy claim eight days after the premium
|| || || || || || || || || || || || || || || ||
due date. The benefit payable is $500 and the overdue premium is $200.
|| || || || || || || || || || || ||
Assuming that the policy pays on a first-dollar basis and contains the unpaid premium provision,
|| || || || || || || || || || || || || || ||
how much will the insurer pay? - ✔✔$300
|| || || || || || ||
A licensee or applicant who is ordered into active military service may request that the license or
|| || || || || || || || || || || || || || || || ||
application be placed on inactive status by sending the department a: - ✔✔Written statement
|| || || || || || || || || || || || ||
An insurer will typically assess a back-end load on a deferred annuity that is cancelled during the
|| || || || || || || || || || || || || || || || ||
early contract years. What is this back-end load referred to as? - ✔✔Surrender charge
|| || || || || || || || || || || || ||
Which statement regarding the certificate of insurance is accurate? - ✔✔It indicates evidence of
|| || || || || || || || || || || || || ||
an emplovee's insurance coverage
|| || ||
What could be the potential result of taking out a cash value loan under a life insurance policy? -
|| || || || || || || || || || || || || || || || || || ||
✔✔Reduces the amount receivable upon surrender of the || || || || || || ||
contract
Home health care benefits typically do || || || || ||
NOT include coverage for - ✔✔Prescription medication
|| || || || || ||
When issuing disability income coverage to a substandard risk, an insurance company may -
|| || || || || || || || || || || || || ||
✔✔shorten the benefit period || || ||
,In what situation could an insurance policy's coverage be modified? - ✔✔Applicant is a
|| || || || || || || || || || || || || ||
substandard risk ||
Which type of deductible must be satisfied again for each illness or accident in a major medical
|| || || || || || || || || || || || || || || || ||
plan? - ✔✔Per-cause || ||
The law of large numbers enables an insurer to - ✔✔Predict losses
|| || || || || || || || || || ||
How long must a producer maintain customer records for an insurance transaction? - ✔✔3 years
|| || || || || || || || || || || || || ||
An annuity contract may be returned for a full refund during the - ✔✔Free-look period
|| || || || || || || || || || || || || ||
A group-owned insurance company that is formed to assume and spread the liability risks of its
|| || || || || || || || || || || || || || || ||
members is known as a - ✔✔Risk Retention Group- A group-owned insurer whose primary
|| || || || || || || || || || || || || ||
activity consists of assuming and spreading the liability risks of its members is called a risk
|| || || || || || || || || || || || || || || ||
retention group. ||
The ________ is responsible for determining the
|| || || || || ||
appropriateness of a Medicare Supplement policy for an applicant. - ✔✔producer || || || || || || || || || ||
Accident and health policies exclude loss as result of - ✔✔war
|| || || || || || || || || ||
Who normally pays the premiums for group credit life insurance? - ✔✔. The borrower typically
|| || || || || || || || || || || || || || ||
pays the premiums on any credit life insurance policy.
|| || || || || || || ||
When would evidence of insurability be required for a person already covered with a variable
|| || || || || || || || || || || || || || ||
universal life policy? - ✔✔When the death benefit is increased || || || || || || || || ||
, Which of these situations would NOT potentially involve a prison sentence under Federal law? -
|| || || || || || || || || || || || || || ||
✔✔Selling insurance with a nonresident license || || || || ||
Under which circumstance is the interest rate guaranteed within a market value adjusted annuity?
|| || || || || || || || || || || || || ||
- ✔✔When the contract has been held for the period specified in the policy
|| || || || || || || || || || || || ||
When a producer submits an application that discloses personal information regarding the
|| || || || || || || || || || || ||
applicant, who supplies the privacy notice? - ✔✔The producer || || || || || || || || ||
The producer is responsible for providing the insurance applicant with privacy notices.
|| || || || || || || || || || ||
An individual is seeking coverage for nursing home (custodial) care that does NOT require any
|| || || || || || || || || || || || || || ||
previous period of hospitalization. Which program offers these specifications? - ✔✔AHCCCS
|| || || || || || || || || ||
Which of these is NOT used as selection criteria in the underwriting process of a life insurance
|| || || || || || || || || || || || || || || || ||
application? - ✔✔national origin || || ||
A group health certificate for coverage issued in
|| || || || || || ||
Arizona MUST contain a(n) - ✔✔A summary of policy features and benefits
|| || || || || || || || || || ||
A life annuity feature which provides benefit payments for a minimum number of years, no
|| || || || || || || || || || || || || || ||
matter when the annuitant dies, is called - ✔✔period certain
|| || || || || || || || ||
Under a deferred annuity, which contract feature initially charges a 5-10% fee that eventually
|| || || || || || || || || || || || || ||
reduces to $0 after a stated amount of time? - ✔✔surrender charge
|| || || || || || || || || || ||
A hold-harmless clause is an example of risk - ✔✔to transfer
|| || || || || || || || || ||
A preferred provider plan and an indemnity plan are similar in what way? - ✔✔Both pay on a fee-
|| || || || || || || || || || || || || || || || || ||
for-service basis ||
SOLUTIONS
If dividend option choices are offered on a whole life insurance policy, the policy
|| || || || || || || || || || || || ||
MUST - ✔✔contain a statement that dividends are NOT guaranteed
|| || || || || || || || ||
An insured files for an accident and health insurance policy claim eight days after the premium
|| || || || || || || || || || || || || || || ||
due date. The benefit payable is $500 and the overdue premium is $200.
|| || || || || || || || || || || ||
Assuming that the policy pays on a first-dollar basis and contains the unpaid premium provision,
|| || || || || || || || || || || || || || ||
how much will the insurer pay? - ✔✔$300
|| || || || || || ||
A licensee or applicant who is ordered into active military service may request that the license or
|| || || || || || || || || || || || || || || || ||
application be placed on inactive status by sending the department a: - ✔✔Written statement
|| || || || || || || || || || || || ||
An insurer will typically assess a back-end load on a deferred annuity that is cancelled during the
|| || || || || || || || || || || || || || || || ||
early contract years. What is this back-end load referred to as? - ✔✔Surrender charge
|| || || || || || || || || || || || ||
Which statement regarding the certificate of insurance is accurate? - ✔✔It indicates evidence of
|| || || || || || || || || || || || || ||
an emplovee's insurance coverage
|| || ||
What could be the potential result of taking out a cash value loan under a life insurance policy? -
|| || || || || || || || || || || || || || || || || || ||
✔✔Reduces the amount receivable upon surrender of the || || || || || || ||
contract
Home health care benefits typically do || || || || ||
NOT include coverage for - ✔✔Prescription medication
|| || || || || ||
When issuing disability income coverage to a substandard risk, an insurance company may -
|| || || || || || || || || || || || || ||
✔✔shorten the benefit period || || ||
,In what situation could an insurance policy's coverage be modified? - ✔✔Applicant is a
|| || || || || || || || || || || || || ||
substandard risk ||
Which type of deductible must be satisfied again for each illness or accident in a major medical
|| || || || || || || || || || || || || || || || ||
plan? - ✔✔Per-cause || ||
The law of large numbers enables an insurer to - ✔✔Predict losses
|| || || || || || || || || || ||
How long must a producer maintain customer records for an insurance transaction? - ✔✔3 years
|| || || || || || || || || || || || || ||
An annuity contract may be returned for a full refund during the - ✔✔Free-look period
|| || || || || || || || || || || || || ||
A group-owned insurance company that is formed to assume and spread the liability risks of its
|| || || || || || || || || || || || || || || ||
members is known as a - ✔✔Risk Retention Group- A group-owned insurer whose primary
|| || || || || || || || || || || || || ||
activity consists of assuming and spreading the liability risks of its members is called a risk
|| || || || || || || || || || || || || || || ||
retention group. ||
The ________ is responsible for determining the
|| || || || || ||
appropriateness of a Medicare Supplement policy for an applicant. - ✔✔producer || || || || || || || || || ||
Accident and health policies exclude loss as result of - ✔✔war
|| || || || || || || || || ||
Who normally pays the premiums for group credit life insurance? - ✔✔. The borrower typically
|| || || || || || || || || || || || || || ||
pays the premiums on any credit life insurance policy.
|| || || || || || || ||
When would evidence of insurability be required for a person already covered with a variable
|| || || || || || || || || || || || || || ||
universal life policy? - ✔✔When the death benefit is increased || || || || || || || || ||
, Which of these situations would NOT potentially involve a prison sentence under Federal law? -
|| || || || || || || || || || || || || || ||
✔✔Selling insurance with a nonresident license || || || || ||
Under which circumstance is the interest rate guaranteed within a market value adjusted annuity?
|| || || || || || || || || || || || || ||
- ✔✔When the contract has been held for the period specified in the policy
|| || || || || || || || || || || || ||
When a producer submits an application that discloses personal information regarding the
|| || || || || || || || || || || ||
applicant, who supplies the privacy notice? - ✔✔The producer || || || || || || || || ||
The producer is responsible for providing the insurance applicant with privacy notices.
|| || || || || || || || || || ||
An individual is seeking coverage for nursing home (custodial) care that does NOT require any
|| || || || || || || || || || || || || || ||
previous period of hospitalization. Which program offers these specifications? - ✔✔AHCCCS
|| || || || || || || || || ||
Which of these is NOT used as selection criteria in the underwriting process of a life insurance
|| || || || || || || || || || || || || || || || ||
application? - ✔✔national origin || || ||
A group health certificate for coverage issued in
|| || || || || || ||
Arizona MUST contain a(n) - ✔✔A summary of policy features and benefits
|| || || || || || || || || || ||
A life annuity feature which provides benefit payments for a minimum number of years, no
|| || || || || || || || || || || || || || ||
matter when the annuitant dies, is called - ✔✔period certain
|| || || || || || || || ||
Under a deferred annuity, which contract feature initially charges a 5-10% fee that eventually
|| || || || || || || || || || || || || ||
reduces to $0 after a stated amount of time? - ✔✔surrender charge
|| || || || || || || || || || ||
A hold-harmless clause is an example of risk - ✔✔to transfer
|| || || || || || || || || ||
A preferred provider plan and an indemnity plan are similar in what way? - ✔✔Both pay on a fee-
|| || || || || || || || || || || || || || || || || ||
for-service basis ||
