1|Page
ARIZONA LIFE AND HEALTH INSURANCE LICENSING EXAM 2
VERSIONS 2025/2026 BANK ACTUAL 500 QUESTIONS WITH
DETAILED ANSWERS WITH STUDY GUIDE EXPERT VERIFIED
FOR GUARANTEED PASS/ALREADY GRADED A+
When the disclosure of an insured's nonpublic information is
involved, what is the insurer obligated to do? - ANSWERS--Give
notice, explain, and allow opting out
Under the Telemarketing Sales Rule, telemarketing calls may NOT be
received after - ANSWERS--9:00 PM
A health plan offered by private insurance companies is - ANSWERS--
Medicare Supplement
Chris has a single major medical contract which covers all medical
expenses. His plan is considered to be - ANSWERS--comprehensive
In accident and health insurance, 60 days must pass after written
proof of loss has been received by an insurer before the insured may
- ANSWERS--Bring legal action against the insurer
When a ten year renewable term life insurance policy issued at age
45 is renewed, the premium rate will be the current rate for -
ANSWERS--Ten year term insurance for a person aged 55
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All of the following are unfair claims settlement practices except -
ANSWERS--An attempt to settle a claim by arbitration
What is covered under a limited accident and health insurance
policy? - ANSWERS--Limited perils and amounts
A life insurance policy provision that has the ability to reduce the
death benefit is called - ANSWERS--Accelerated (living) benefit
If an accident and health insurance claim form is NOT supplied to the
insured within 15 says after the notice of claim, the insured may
comply with the proof of loss provision by submitting - ANSWERS--
Written proof of the occurrence and extent of loss
How are monthly life annuity benefit payments treated under a tax
sheltered annuity (TSA)? - ANSWERS--Taxed as ordinary income in
the year received
How does a continuous premium whole life policy differ from a
limited payment whole life policy? - ANSWERS--The time period in
which premiums will be paid
Which of these is an accurate statement regarding the fixed period
settlement option on a life insurance policy? - ANSWERS--A portion
of the payments paid to the beneficiary comes from interest
calculated on the proceeds of the policy
,3|Page
Under what circumstance does an accident and health insurer have
the right to request an autopsy? - ANSWERS--When not prohibited
by state law
A material change in a modified endowment contract (MEC) results
in - ANSWERS--the seven pay test, adjusted for cash value, being
applied again
Under an adjustable life insurance policy, which of the following may
NOT be changed without further underwriting? - ANSWERS--The
person insured
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 this EXCEPT for - ANSWERS--
custodial care
Employer-paid qualified long-term care insurance premiums are
typically - ANSWERS--Excluded from the employee's gross income.
Which statement regarding the certificate of insurance is accurate? -
ANSWERS--Indicates evidence of an employee's insurance coverage
Purchasing insurance is an example of risk - ANSWERS--transference
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When an applicant applies for a large amount of life insurance
coverage, which of the following would likely NOT be an
underwriting requirement? - ANSWERS--eye examination
A comprehensive major medical health insurance policy contains an
eligible expenses provision which identifies the type of health care
services that are covered. All of the following health care services are
typical covered EXCEPT for - ANSWERS--Experimental and
investigative services
All of these statements concerning group credit life insurance are
false EXCEPT - ANSWERS--The face amount is determined by the
outstanding loan balance
Who may terminate coverage under and cancelable health insurance
policy? - ANSWERS--insurer or insured
The interest credited to the cash values of personally-owned non-
qualified annuities is considered - ANSWERS--tax deferred
An insurer that confines or largely limits the exposures it writes to
those of its owners is called - ANSWERS--captive
Dividends from a mutual insurance company are paid to whom? -
ANSWERS--Policyholders
ARIZONA LIFE AND HEALTH INSURANCE LICENSING EXAM 2
VERSIONS 2025/2026 BANK ACTUAL 500 QUESTIONS WITH
DETAILED ANSWERS WITH STUDY GUIDE EXPERT VERIFIED
FOR GUARANTEED PASS/ALREADY GRADED A+
When the disclosure of an insured's nonpublic information is
involved, what is the insurer obligated to do? - ANSWERS--Give
notice, explain, and allow opting out
Under the Telemarketing Sales Rule, telemarketing calls may NOT be
received after - ANSWERS--9:00 PM
A health plan offered by private insurance companies is - ANSWERS--
Medicare Supplement
Chris has a single major medical contract which covers all medical
expenses. His plan is considered to be - ANSWERS--comprehensive
In accident and health insurance, 60 days must pass after written
proof of loss has been received by an insurer before the insured may
- ANSWERS--Bring legal action against the insurer
When a ten year renewable term life insurance policy issued at age
45 is renewed, the premium rate will be the current rate for -
ANSWERS--Ten year term insurance for a person aged 55
,2|Page
All of the following are unfair claims settlement practices except -
ANSWERS--An attempt to settle a claim by arbitration
What is covered under a limited accident and health insurance
policy? - ANSWERS--Limited perils and amounts
A life insurance policy provision that has the ability to reduce the
death benefit is called - ANSWERS--Accelerated (living) benefit
If an accident and health insurance claim form is NOT supplied to the
insured within 15 says after the notice of claim, the insured may
comply with the proof of loss provision by submitting - ANSWERS--
Written proof of the occurrence and extent of loss
How are monthly life annuity benefit payments treated under a tax
sheltered annuity (TSA)? - ANSWERS--Taxed as ordinary income in
the year received
How does a continuous premium whole life policy differ from a
limited payment whole life policy? - ANSWERS--The time period in
which premiums will be paid
Which of these is an accurate statement regarding the fixed period
settlement option on a life insurance policy? - ANSWERS--A portion
of the payments paid to the beneficiary comes from interest
calculated on the proceeds of the policy
,3|Page
Under what circumstance does an accident and health insurer have
the right to request an autopsy? - ANSWERS--When not prohibited
by state law
A material change in a modified endowment contract (MEC) results
in - ANSWERS--the seven pay test, adjusted for cash value, being
applied again
Under an adjustable life insurance policy, which of the following may
NOT be changed without further underwriting? - ANSWERS--The
person insured
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 this EXCEPT for - ANSWERS--
custodial care
Employer-paid qualified long-term care insurance premiums are
typically - ANSWERS--Excluded from the employee's gross income.
Which statement regarding the certificate of insurance is accurate? -
ANSWERS--Indicates evidence of an employee's insurance coverage
Purchasing insurance is an example of risk - ANSWERS--transference
, 4|Page
When an applicant applies for a large amount of life insurance
coverage, which of the following would likely NOT be an
underwriting requirement? - ANSWERS--eye examination
A comprehensive major medical health insurance policy contains an
eligible expenses provision which identifies the type of health care
services that are covered. All of the following health care services are
typical covered EXCEPT for - ANSWERS--Experimental and
investigative services
All of these statements concerning group credit life insurance are
false EXCEPT - ANSWERS--The face amount is determined by the
outstanding loan balance
Who may terminate coverage under and cancelable health insurance
policy? - ANSWERS--insurer or insured
The interest credited to the cash values of personally-owned non-
qualified annuities is considered - ANSWERS--tax deferred
An insurer that confines or largely limits the exposures it writes to
those of its owners is called - ANSWERS--captive
Dividends from a mutual insurance company are paid to whom? -
ANSWERS--Policyholders
