2025 Insurance Exam AZ #1333 QUESTIONS AND CORRECT DETAILED
ANSWERS
Christine is receiving benefits provided from her disability income insurance. as compared to
her previous earnings, the disability benefits should be - answers-somewhat less
which statement regarding a fixed period settlement is correct? - answers-the installment
payment amount is determined by the total number of installments
the application is part of the annuity contract according to the - answers-entire contract clause
in the event of premium default, which life insurance provision will use the cash value to keep
the policy in force? - answers-automatic premium loan
all of these are considered features of whole life insurance EXCEPT - answers-initial premium is
lower than for an equivalent amount of term insurance
greg had recently been terminated from his job that covered him for group life insurance. how
long does he have to convert his coverage to an individual policy? - answers-31 days
when a large sum of money is used to structure monthly payments, which product is typically
used? - answers-an immediate annuity
which of the following would provide a reimbursement of some premiums when a long-term
care policy is canceled? - answers-return of premium rider
,which of the following actions is considered to be an unfair trade practice? - answers-a producer
who sells insurance to an individual by means of threat
a life insurance policy can usually be contested by the insurer only during the first ______ years
of the contract - answers-two
enrollees in a staff model HMO normally have which of the following pharmacy options
available? - answers-in-house pharmacy
An insurer must keep advertising materials and records for at least how many years? - answers-
3
The insurance coverage in a variable life insurance policy may vary based on the value of -
answers-the underlying investments
When is it acceptable to charge or receive a fee or service charge in addition to the premium in
connection with the transaction of insurance? - answers-If the amount of the fee or service
charge is reasonably related to the cost of the service.
The dental specialty which deals with the replacement of missing teeth is called - answers-
Prosthodontics
Which of the following is NOT a valid reason for an insurer to contest a life insurance policy
during the policy's first two years of existence? - answers-Misstatement of age
Which of the following would most likely purchase an immediate annuity? - answers-Retiree
having a lump sum to invest.
, A signed good health statement may be requested by a life producer at the time of - answers-
Policy delivery
Tim is covered by Policy A with a $4,000 limit and by Policy B with a $2,000 limit. Policy A is
primary. If a $6,000 loss is incurred, what will each policy pay? - answers-A: 4,000 B: 2,000
Which of the following is NOT a valid contract age? - answers-An annuity exchanged for a life
insurance policy.
Tim is covered by an accident and health insurance policy that may not be changed in any way
by the insurer up to a stetted age, as long as the premiums are paid. What type of policy is this?
- answers-Noncancelable
An insurer will typically assess a back-end load on a deferred annuity that is cancelled during the
early contract years. What is the back-end load referred to as? - answers-Surrender charge
What is considered a valid reason for small corporations to insure the lives of its major
stockholders? - answers-Fund a buy-sell agreement
The insured's consideration given for a health insurance policy is - answers-the first premium
payment and the application
And since major medical health insurance policy contains an eligible expense provision which
identifies the types of healthcare services that are covered all of the following healthcare
services are typically covered except for - answers-experimental and investigative services
Mark is covered by a policy that issues the regular occupation (own-occ) definition of total
disability. He will be considered disabled if unable to - answers-perform the substantial and
marital duties of his regular occupation
ANSWERS
Christine is receiving benefits provided from her disability income insurance. as compared to
her previous earnings, the disability benefits should be - answers-somewhat less
which statement regarding a fixed period settlement is correct? - answers-the installment
payment amount is determined by the total number of installments
the application is part of the annuity contract according to the - answers-entire contract clause
in the event of premium default, which life insurance provision will use the cash value to keep
the policy in force? - answers-automatic premium loan
all of these are considered features of whole life insurance EXCEPT - answers-initial premium is
lower than for an equivalent amount of term insurance
greg had recently been terminated from his job that covered him for group life insurance. how
long does he have to convert his coverage to an individual policy? - answers-31 days
when a large sum of money is used to structure monthly payments, which product is typically
used? - answers-an immediate annuity
which of the following would provide a reimbursement of some premiums when a long-term
care policy is canceled? - answers-return of premium rider
,which of the following actions is considered to be an unfair trade practice? - answers-a producer
who sells insurance to an individual by means of threat
a life insurance policy can usually be contested by the insurer only during the first ______ years
of the contract - answers-two
enrollees in a staff model HMO normally have which of the following pharmacy options
available? - answers-in-house pharmacy
An insurer must keep advertising materials and records for at least how many years? - answers-
3
The insurance coverage in a variable life insurance policy may vary based on the value of -
answers-the underlying investments
When is it acceptable to charge or receive a fee or service charge in addition to the premium in
connection with the transaction of insurance? - answers-If the amount of the fee or service
charge is reasonably related to the cost of the service.
The dental specialty which deals with the replacement of missing teeth is called - answers-
Prosthodontics
Which of the following is NOT a valid reason for an insurer to contest a life insurance policy
during the policy's first two years of existence? - answers-Misstatement of age
Which of the following would most likely purchase an immediate annuity? - answers-Retiree
having a lump sum to invest.
, A signed good health statement may be requested by a life producer at the time of - answers-
Policy delivery
Tim is covered by Policy A with a $4,000 limit and by Policy B with a $2,000 limit. Policy A is
primary. If a $6,000 loss is incurred, what will each policy pay? - answers-A: 4,000 B: 2,000
Which of the following is NOT a valid contract age? - answers-An annuity exchanged for a life
insurance policy.
Tim is covered by an accident and health insurance policy that may not be changed in any way
by the insurer up to a stetted age, as long as the premiums are paid. What type of policy is this?
- answers-Noncancelable
An insurer will typically assess a back-end load on a deferred annuity that is cancelled during the
early contract years. What is the back-end load referred to as? - answers-Surrender charge
What is considered a valid reason for small corporations to insure the lives of its major
stockholders? - answers-Fund a buy-sell agreement
The insured's consideration given for a health insurance policy is - answers-the first premium
payment and the application
And since major medical health insurance policy contains an eligible expense provision which
identifies the types of healthcare services that are covered all of the following healthcare
services are typically covered except for - answers-experimental and investigative services
Mark is covered by a policy that issues the regular occupation (own-occ) definition of total
disability. He will be considered disabled if unable to - answers-perform the substantial and
marital duties of his regular occupation
