ARIZONA HEALTH INSURANCE PRACTICE EXAMS
ANSWERS AND QUESTIONS SET A+
✔✔Which of the following is NOT a dividend option for a life insurance policy? -
✔✔Receiving the entire policy cash value
✔✔A major medical expense plan typically includes coverage for hospital room and
board. Which of the following is normally covered under the category "room and board"?
- ✔✔General nursing care
✔✔The disability income policy most likely to have been issued on a substandard basis
is - ✔✔Non-cancelable with a health condition exclusion rider
✔✔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
✔✔Misrepresenting pertinent policy provisions relating to coverage after a loss is -
✔✔An unfair claims settlement practice
✔✔Which type of Medicare supplement information can be used without prior state
approval? - ✔✔Government publications
✔✔Which statement is NOT true regarding health insurance policies that provide limited
benefits? - ✔✔Only persons under the age of 65 are eligible
✔✔Which of the following statements accurately describes the financial impact of total
disability? - ✔✔May be worse than the financial impact of death
✔✔Which of the following is NOT a valid contract exchange? - ✔✔An annuity
exchanged for a life insurance policy
✔✔Which of the following can be defined as "the potential for loss"? - ✔✔Risk
,✔✔What are reasonable and customary charges for health insurance primarily based
on? - ✔✔Average charges within a geographic region
✔✔What is the face amount of a $50,000 graded death benefit life insurance policy
when the policy is issued? - ✔✔Under $50,000 initially, but increases over time
✔✔Which of these is true regarding the exchange of consideration among parties
involved in an insurance contract? - ✔✔Can be unequal
✔✔Which statement regarding universal life insurance is correct? - ✔✔Cash value
accumulations have a guaranteed minimum interest rate
✔✔All of the following may obtain a temporary producers license EXCEPT - ✔✔An
employee of a licensed producer who is retired
✔✔When an individual purchases insurance as a result of threats made by the
producer, there has been a violation of - ✔✔Unfair trade practice laws
✔✔In an individual retirement account (IRA), rollover contributions are - ✔✔Unlimited by
dollar amount
✔✔How often must a notice of information practices be given to a policyholder? - ✔✔At
least once a year
✔✔A licensee whose name or address changes must notify the department of
insurance within - ✔✔30 days
✔✔A policy owner pays the first annual premium for a 50,000 life insurance policy and
dies one month after the policy effective date. Which of these statements is normally
true? - ✔✔Beneficiary receives 50,000 income tax free
✔✔Christine is receiving benefits provided from her disability income insurance. As
compared to her previous earnings, the disability benefits should be - ✔✔somewhat
less
✔✔An insurance company may delay the payment of the cash value of a surrendered
whole life insurance policy for up to - ✔✔6 month
✔✔A life insurance policyowner would like a dividend option that results in a limited
current outlay of funds. Which dividend option would be chose? - ✔✔Reduction of
premium payment
, ✔✔When a Medicare Supplement insurance policy is being replaced, who must sign the
notice of replacement? - ✔✔The producer and the applicant
✔✔Security laws passed by Congress are enforced by which Federal agency? -
✔✔Security and Exchange Commission (SEC)
✔✔The principal source of info concerning an applicants identity, age, and marital
status is found in the - ✔✔Completed application
✔✔What determines how much an annuitant is paid for a variable annuity? - ✔✔The
market value fluctuations of the securities backing it
✔✔Which life insurance policy option allows the policyowner to have coverage equal to
the net death benefit of the lapsed policy? - ✔✔Extended term nonforfeiture option
✔✔Illustrations used in the sale of life insurance contain a statement that must be
signed by - ✔✔producer
✔✔According to ERISA regulations, a summary plan description must be provided to a
new plan member within _____ Days of the members eligibility date. - ✔✔90
✔✔The authority to change the beneficiary in an individual annuity lies with the -
✔✔Owner
✔✔Starting in 2016, businesses with up to ___ employees will be defined by the ACA
as a "small business". - ✔✔100
✔✔A family counseling benefit is typically offered under which of these coverages? -
✔✔hospice care
✔✔Under the telemarketing sales rule, telemarketing calls may ONLY be received
between the hours of - ✔✔8am and 9pm
✔✔An insured has a $25,000 whole life insurance policy with $6,000 cash value
available. Under the extended term nonforfeiture option, what is the amount of
insurance available to the insured? - ✔✔$25,000
✔✔XYZ Insurance Company gives direct authority to its producers to sell insurance
through an agency contract, but nothing is stated regarding the collection of premiums.
Which authority grants the producer the right to collect premiums? - ✔✔implied authority
ANSWERS AND QUESTIONS SET A+
✔✔Which of the following is NOT a dividend option for a life insurance policy? -
✔✔Receiving the entire policy cash value
✔✔A major medical expense plan typically includes coverage for hospital room and
board. Which of the following is normally covered under the category "room and board"?
- ✔✔General nursing care
✔✔The disability income policy most likely to have been issued on a substandard basis
is - ✔✔Non-cancelable with a health condition exclusion rider
✔✔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
✔✔Misrepresenting pertinent policy provisions relating to coverage after a loss is -
✔✔An unfair claims settlement practice
✔✔Which type of Medicare supplement information can be used without prior state
approval? - ✔✔Government publications
✔✔Which statement is NOT true regarding health insurance policies that provide limited
benefits? - ✔✔Only persons under the age of 65 are eligible
✔✔Which of the following statements accurately describes the financial impact of total
disability? - ✔✔May be worse than the financial impact of death
✔✔Which of the following is NOT a valid contract exchange? - ✔✔An annuity
exchanged for a life insurance policy
✔✔Which of the following can be defined as "the potential for loss"? - ✔✔Risk
,✔✔What are reasonable and customary charges for health insurance primarily based
on? - ✔✔Average charges within a geographic region
✔✔What is the face amount of a $50,000 graded death benefit life insurance policy
when the policy is issued? - ✔✔Under $50,000 initially, but increases over time
✔✔Which of these is true regarding the exchange of consideration among parties
involved in an insurance contract? - ✔✔Can be unequal
✔✔Which statement regarding universal life insurance is correct? - ✔✔Cash value
accumulations have a guaranteed minimum interest rate
✔✔All of the following may obtain a temporary producers license EXCEPT - ✔✔An
employee of a licensed producer who is retired
✔✔When an individual purchases insurance as a result of threats made by the
producer, there has been a violation of - ✔✔Unfair trade practice laws
✔✔In an individual retirement account (IRA), rollover contributions are - ✔✔Unlimited by
dollar amount
✔✔How often must a notice of information practices be given to a policyholder? - ✔✔At
least once a year
✔✔A licensee whose name or address changes must notify the department of
insurance within - ✔✔30 days
✔✔A policy owner pays the first annual premium for a 50,000 life insurance policy and
dies one month after the policy effective date. Which of these statements is normally
true? - ✔✔Beneficiary receives 50,000 income tax free
✔✔Christine is receiving benefits provided from her disability income insurance. As
compared to her previous earnings, the disability benefits should be - ✔✔somewhat
less
✔✔An insurance company may delay the payment of the cash value of a surrendered
whole life insurance policy for up to - ✔✔6 month
✔✔A life insurance policyowner would like a dividend option that results in a limited
current outlay of funds. Which dividend option would be chose? - ✔✔Reduction of
premium payment
, ✔✔When a Medicare Supplement insurance policy is being replaced, who must sign the
notice of replacement? - ✔✔The producer and the applicant
✔✔Security laws passed by Congress are enforced by which Federal agency? -
✔✔Security and Exchange Commission (SEC)
✔✔The principal source of info concerning an applicants identity, age, and marital
status is found in the - ✔✔Completed application
✔✔What determines how much an annuitant is paid for a variable annuity? - ✔✔The
market value fluctuations of the securities backing it
✔✔Which life insurance policy option allows the policyowner to have coverage equal to
the net death benefit of the lapsed policy? - ✔✔Extended term nonforfeiture option
✔✔Illustrations used in the sale of life insurance contain a statement that must be
signed by - ✔✔producer
✔✔According to ERISA regulations, a summary plan description must be provided to a
new plan member within _____ Days of the members eligibility date. - ✔✔90
✔✔The authority to change the beneficiary in an individual annuity lies with the -
✔✔Owner
✔✔Starting in 2016, businesses with up to ___ employees will be defined by the ACA
as a "small business". - ✔✔100
✔✔A family counseling benefit is typically offered under which of these coverages? -
✔✔hospice care
✔✔Under the telemarketing sales rule, telemarketing calls may ONLY be received
between the hours of - ✔✔8am and 9pm
✔✔An insured has a $25,000 whole life insurance policy with $6,000 cash value
available. Under the extended term nonforfeiture option, what is the amount of
insurance available to the insured? - ✔✔$25,000
✔✔XYZ Insurance Company gives direct authority to its producers to sell insurance
through an agency contract, but nothing is stated regarding the collection of premiums.
Which authority grants the producer the right to collect premiums? - ✔✔implied authority
