ARIZONA LIFE AND HEALTH FINAL
EXAM
A policy owner suffers a covered accident and health insurance loss in June 30 and submits the proof of
loss to the insurer July 10. If the policy owner cancelled the coverage on July 2, how will the insurance
company handle the claim? - Claim must be paid after proof of loss is received
A health plan offered by private insurance companies is? - A Medicare Supplement
A licensee whose name or address changes must notify the Department of Insurance within? - 30
Days
A life annuity with a period certain is characterized as? - Guaranteeing benefit payments for a
stated minimum period of time
A life insurance illustration showing future premiums being paid out of no guaranteed values must
disclose that? - The policy owner may need to resume premium payments depending on actual
results
A life insurance illustration showing future premiums being paid out of non-guaranteed values must
disclose that - The policy owner may need to resume premium payments depending on actual
results
A life insurance policy provision that has the ability to reduce the death benefit is called the? -
Accelerated (living) benefit
A life insurance policy's contingent beneficiary is the? - Person who receives the death benefits if
the primary beneficiary dies before the insured
A life policy that has premiums that are lower than normal during the early years is called? -
Modified Life
,A material change in a modified endowment contract (MEC) results in? - The seven pay test,
adjusted for cash value, applies again
A Medicare Supplement policy is required to do which of the following? - Provide a 30 day free-
look period
A physician who accepts assignment on all Medicare claims is called a(n) - Participating provider
A policy owner has just borrowed from a life insurance policy's cash value. Which of these statements is
true? - In the event of death, the loan amount is deducted from the policy proceeds
A business may purchase an annuity for all of the following reasons EXCEPT? - Funding a non-
qualified deferred compensation plan
A policy owner is permitted to take out a policy loan on a whole life policy at what point? - When
the policy has a cash value
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 policy owner pays the first annual premium for a $50,000 Life Insurance policy and dies one month
after the policy effective fate. Which of these statements is normally true? - Beneficiary receives
$50,000 income tax-free
A preferred provider plan and an indemnity plan are similar in what way? - Both pay on a fee-for-
service basis
A producer must maintain customer records for how many years following the completion date of the
insurance transaction? - 3 years
A producer working for an insurance company may be personally liable for? - Acts performed
which are prohibited in the agency contract
, A signed good health statement may be requested by a life producer at the time of - Policy
delivery
A teacher recently retired at age 63 and has a tax sheltered annuity (TSA). Periodic deposits total
$120,000 and the value of the contract is now worth $200,000. How much is taxed if the current value is
surrendered today? - $200,000
A terminated employee has how many days upon termination to convert group life insurance coverage
to an individual policy? - 31 Days
ABC partnership is a business with a limited number of partners. Which disability buy-sell agreement is
best suited for this business? - Cross Purchase agreement
According to federal fraud and false statement regulation, what is required for a prohibited person to
transact insurance business in this state? - Written consent from the state insurance regulatory
agency
According to HIPAA regulations, which of the following may reduce a medical plan's pre-existing
conditions exclusion? - Any period of prior coverage
According to HIPAA regulations, which of the following may reduce a medical plan's pre-existing
conditions exclusion? - Any period of prior coverage
According to the Affordable Care Act (ACA), Insurers can no longer deny health coverage due to pre-
existing conditions unless that plan is a(n)? - Grandfathered plan
According to the Affordable Care Act (ACA), the proportion of premium revenues spent on clinical
services and quality improvements is called the? - Medical loss ratio
According to the Affordable Care Act (ACA), the proportion of premium revenues spent on clinical
services and quality improvements is called the? - Medical loss ratio
EXAM
A policy owner suffers a covered accident and health insurance loss in June 30 and submits the proof of
loss to the insurer July 10. If the policy owner cancelled the coverage on July 2, how will the insurance
company handle the claim? - Claim must be paid after proof of loss is received
A health plan offered by private insurance companies is? - A Medicare Supplement
A licensee whose name or address changes must notify the Department of Insurance within? - 30
Days
A life annuity with a period certain is characterized as? - Guaranteeing benefit payments for a
stated minimum period of time
A life insurance illustration showing future premiums being paid out of no guaranteed values must
disclose that? - The policy owner may need to resume premium payments depending on actual
results
A life insurance illustration showing future premiums being paid out of non-guaranteed values must
disclose that - The policy owner may need to resume premium payments depending on actual
results
A life insurance policy provision that has the ability to reduce the death benefit is called the? -
Accelerated (living) benefit
A life insurance policy's contingent beneficiary is the? - Person who receives the death benefits if
the primary beneficiary dies before the insured
A life policy that has premiums that are lower than normal during the early years is called? -
Modified Life
,A material change in a modified endowment contract (MEC) results in? - The seven pay test,
adjusted for cash value, applies again
A Medicare Supplement policy is required to do which of the following? - Provide a 30 day free-
look period
A physician who accepts assignment on all Medicare claims is called a(n) - Participating provider
A policy owner has just borrowed from a life insurance policy's cash value. Which of these statements is
true? - In the event of death, the loan amount is deducted from the policy proceeds
A business may purchase an annuity for all of the following reasons EXCEPT? - Funding a non-
qualified deferred compensation plan
A policy owner is permitted to take out a policy loan on a whole life policy at what point? - When
the policy has a cash value
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 policy owner pays the first annual premium for a $50,000 Life Insurance policy and dies one month
after the policy effective fate. Which of these statements is normally true? - Beneficiary receives
$50,000 income tax-free
A preferred provider plan and an indemnity plan are similar in what way? - Both pay on a fee-for-
service basis
A producer must maintain customer records for how many years following the completion date of the
insurance transaction? - 3 years
A producer working for an insurance company may be personally liable for? - Acts performed
which are prohibited in the agency contract
, A signed good health statement may be requested by a life producer at the time of - Policy
delivery
A teacher recently retired at age 63 and has a tax sheltered annuity (TSA). Periodic deposits total
$120,000 and the value of the contract is now worth $200,000. How much is taxed if the current value is
surrendered today? - $200,000
A terminated employee has how many days upon termination to convert group life insurance coverage
to an individual policy? - 31 Days
ABC partnership is a business with a limited number of partners. Which disability buy-sell agreement is
best suited for this business? - Cross Purchase agreement
According to federal fraud and false statement regulation, what is required for a prohibited person to
transact insurance business in this state? - Written consent from the state insurance regulatory
agency
According to HIPAA regulations, which of the following may reduce a medical plan's pre-existing
conditions exclusion? - Any period of prior coverage
According to HIPAA regulations, which of the following may reduce a medical plan's pre-existing
conditions exclusion? - Any period of prior coverage
According to the Affordable Care Act (ACA), Insurers can no longer deny health coverage due to pre-
existing conditions unless that plan is a(n)? - Grandfathered plan
According to the Affordable Care Act (ACA), the proportion of premium revenues spent on clinical
services and quality improvements is called the? - Medical loss ratio
According to the Affordable Care Act (ACA), the proportion of premium revenues spent on clinical
services and quality improvements is called the? - Medical loss ratio
