FINAL EXAM - ARIZONA LIFE AND
HEALTH QUESTIONS ALL ANSWERED
CORRECT (2025-2026) UPDATED.
Which of these is true regarding the exchange of consideration among parties involved in an
insurance contract? - Answer Can be unequal
The premiums paid by an employer for his employee's group life insurance are usually
considered to be? - Answer Tax-deductible to the employer
Kevin has an existing life insurance policy and assigns it to another insurer for a new contract.
How would this transaction be treated for tax purposes? - Answer As a section 1035 exchange
Which of these is NOT a common life insurance nonforfeiture option? - Answer Life income
annuity
Linda is covered with long-term care insurance and has early-stage Alzheimer's. She is still able
to reside in her home while receiving primary care, as opposed to moving into a nursing home.
All of the following long-term benefits encourage home health care EXCEPT? - Answer
Custodial Care
An accident and health insurer has just received written proof of loss from one of its insurers.
The insured must now wait 60 days before? - Answer Bringing legal action against the insurer
Health care costs can be better controlled by utilizing pre-admission testing. Pre-admission
testing can reduce the? - Answer Length of hospitalization
The "Use ir or Lose it" rule applies to - Answer Flexible Savings Account
fee-for-service is a method of administering health insurance benefit payments in which -
Answer The cost of each service is scheduled
Use of XYZ Insurance Company brochures, business cards, and rating guides is an example of? -
Answer Apparent Authority
,When the court orders an insured to provide a child's health insurance, the insurer must allow
the child to be enrolled? - Answer At any time
Which of these statements is NOT a characteristic of the law of large numbers? - Answer Rates
can be calculated to compensate for losses
In Arizona, when personal information is collected from a source other then the accident and
health insurance applicant or public records, a notice or information practices must be given to
the applicant no later than the date of? - Answer Application
How does the cost for a survivorship life policy compare to the cost of combining two separate
individual life insurance policies? - Answer Survivorship life policy is lower
How does a continuous premium whole life policy differ from a limited payment whole life
policy? - Answer The time period in which premiums will be paid
An agent's authority to bind an insurer to an insurance contract may be granted in the? -
Answer Agent's contract and the insurance company's appointment
Which statement concerning the Entire Contact provision in an individual accident and health
insurance policy is TRUE? - Answer The agent doesn't have the authority to change the policy
or waive its provisions
Under the Fair Credit Reporting Act, which statement is true? - Answer The consumer who
was investigated must be advised that credit, insurance, or employment was denied because of
an unfavorable report.
Field underwriting by a producer? - Answer May result in the disclosure of hazardous activity
of the applicant.
When group benefits under COBRA have expired, a fully insured group policy can be converted
to a(n) - Answer Individual health policy
In a qualified retirement plan, the yearly contributions to an employee's account? - Answer
Are restricted to maximum limits set by the IRS
, Which provision makes the application part of the annuity contract? - Answer Entire Contract
clause
Arizona Law require the Human Immunodeficiency Virus (HIV) consent form to? - Answer
Disclose the types of individuals or organizations that may receive a copy of the test results
Under which marketing system do insurers solicit customers by mass media advertising and mail
without their services of an agent? - Answer Direct Response
A policy owner has just borrowed from a life insurance policy's cash value. Which of these
statements is true? - Answer In the event of death, the loan amount is deducted from the
policy proceeds
According to federal fraud and false statement regulation, what is required for a prohibited
person to transact insurance business in this state? - Answer Written consent from the state
insurance regulatory agency
Employer-paid qualifies long-term care insurance premiums are typically? - Answer Excluded
from the employee's gross income
When replacing a life insurance policy, which of the following is advisable? - Answer Wait until
the new policy Is issued and deliver before surrendering existing policy
Which of these may NOT be deducted from premium payments or the cash value of a variable
life insurance policy? - Answer Federal premium taxes
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? - Answer
Beneficiary receives $50,000 income tax-free
A life policy that has premiums that are lower than normal during the early years is called? -
Answer Modified Life
Which life insurance settlement option pays a stated monthly benefit until both principal and
interest are exhausted? - Answer Fixed amount installment option
HEALTH QUESTIONS ALL ANSWERED
CORRECT (2025-2026) UPDATED.
Which of these is true regarding the exchange of consideration among parties involved in an
insurance contract? - Answer Can be unequal
The premiums paid by an employer for his employee's group life insurance are usually
considered to be? - Answer Tax-deductible to the employer
Kevin has an existing life insurance policy and assigns it to another insurer for a new contract.
How would this transaction be treated for tax purposes? - Answer As a section 1035 exchange
Which of these is NOT a common life insurance nonforfeiture option? - Answer Life income
annuity
Linda is covered with long-term care insurance and has early-stage Alzheimer's. She is still able
to reside in her home while receiving primary care, as opposed to moving into a nursing home.
All of the following long-term benefits encourage home health care EXCEPT? - Answer
Custodial Care
An accident and health insurer has just received written proof of loss from one of its insurers.
The insured must now wait 60 days before? - Answer Bringing legal action against the insurer
Health care costs can be better controlled by utilizing pre-admission testing. Pre-admission
testing can reduce the? - Answer Length of hospitalization
The "Use ir or Lose it" rule applies to - Answer Flexible Savings Account
fee-for-service is a method of administering health insurance benefit payments in which -
Answer The cost of each service is scheduled
Use of XYZ Insurance Company brochures, business cards, and rating guides is an example of? -
Answer Apparent Authority
,When the court orders an insured to provide a child's health insurance, the insurer must allow
the child to be enrolled? - Answer At any time
Which of these statements is NOT a characteristic of the law of large numbers? - Answer Rates
can be calculated to compensate for losses
In Arizona, when personal information is collected from a source other then the accident and
health insurance applicant or public records, a notice or information practices must be given to
the applicant no later than the date of? - Answer Application
How does the cost for a survivorship life policy compare to the cost of combining two separate
individual life insurance policies? - Answer Survivorship life policy is lower
How does a continuous premium whole life policy differ from a limited payment whole life
policy? - Answer The time period in which premiums will be paid
An agent's authority to bind an insurer to an insurance contract may be granted in the? -
Answer Agent's contract and the insurance company's appointment
Which statement concerning the Entire Contact provision in an individual accident and health
insurance policy is TRUE? - Answer The agent doesn't have the authority to change the policy
or waive its provisions
Under the Fair Credit Reporting Act, which statement is true? - Answer The consumer who
was investigated must be advised that credit, insurance, or employment was denied because of
an unfavorable report.
Field underwriting by a producer? - Answer May result in the disclosure of hazardous activity
of the applicant.
When group benefits under COBRA have expired, a fully insured group policy can be converted
to a(n) - Answer Individual health policy
In a qualified retirement plan, the yearly contributions to an employee's account? - Answer
Are restricted to maximum limits set by the IRS
, Which provision makes the application part of the annuity contract? - Answer Entire Contract
clause
Arizona Law require the Human Immunodeficiency Virus (HIV) consent form to? - Answer
Disclose the types of individuals or organizations that may receive a copy of the test results
Under which marketing system do insurers solicit customers by mass media advertising and mail
without their services of an agent? - Answer Direct Response
A policy owner has just borrowed from a life insurance policy's cash value. Which of these
statements is true? - Answer In the event of death, the loan amount is deducted from the
policy proceeds
According to federal fraud and false statement regulation, what is required for a prohibited
person to transact insurance business in this state? - Answer Written consent from the state
insurance regulatory agency
Employer-paid qualifies long-term care insurance premiums are typically? - Answer Excluded
from the employee's gross income
When replacing a life insurance policy, which of the following is advisable? - Answer Wait until
the new policy Is issued and deliver before surrendering existing policy
Which of these may NOT be deducted from premium payments or the cash value of a variable
life insurance policy? - Answer Federal premium taxes
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? - Answer
Beneficiary receives $50,000 income tax-free
A life policy that has premiums that are lower than normal during the early years is called? -
Answer Modified Life
Which life insurance settlement option pays a stated monthly benefit until both principal and
interest are exhausted? - Answer Fixed amount installment option
