ARIZONA LIFE AND HEALTH FINAL EXAM WITH ACCURATE || || || || || || || ||
DETAILED ANSWERS ||
Which of these is true regarding the exchange of consideration among parties involved in an
|| || || || || || || || || || || || || || ||
insurance contract? - ✔✔Can be unequal || || || || ||
The premiums paid by an employer for his employee's group life insurance are usually considered
|| || || || || || || || || || || || || ||
to be? - ✔✔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? - ✔✔As a section 1035 exchange
|| || || || || || || || || || || || || ||
Which of these is NOT a common life insurance nonforfeiture option? - ✔✔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? - ✔✔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? - ✔✔Bringing legal action against the insurer
|| || || || || || || || || || || || ||
Health care costs can be better controlled by utilizing pre-admission testing. Pre-admission testing
|| || || || || || || || || || || ||
can reduce the? - ✔✔Length of hospitalization
|| || || || || || ||
The "Use ir or Lose it" rule applies to - ✔✔Flexible Savings Account
|| || || || || || || || || || || ||
fee-for-service is a method of administering health insurance benefit payments in which - ✔✔The || || || || || || || || || || || || ||
cost of each service is scheduled
|| || || || || ||
,Use of XYZ Insurance Company brochures, business cards, and rating guides is an example of? -
|| || || || || || || || || || || || || || || ||
✔✔Apparent Authority ||
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 ||
When the court orders an insured to provide a child's health insurance, the insurer must allow the
|| || || || || || || || || || || || || || || || ||
child to be enrolled? - ✔✔At any time
|| || || || || || ||
Which of these statements is NOT a characteristic of the law of large numbers? - ✔✔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? - ✔✔Application
|| || || || || || || || ||
How does the cost for a survivorship life policy compare to the cost of combining two separate
|| || || || || || || || || || || || || || || || ||
individual life insurance policies? - ✔✔Survivorship life policy is lower
|| || || || || || || || ||
How does a continuous premium whole life policy differ from a limited payment whole life
|| || || || || || || || || || || || || || ||
policy? - ✔✔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? -
|| || || || || || || || || || || || || || || || ||
✔✔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? - ✔✔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? - ✔✔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? - ✔✔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) - ✔✔Individual health policy
|| || || || ||
In a qualified retirement plan, the yearly contributions to an employee's account? - ✔✔Are
|| || || || || || || || || || || || || ||
restricted to maximum limits set by the IRS || || || || || || ||
The unwritten authority given to a producer to carry out necessary incidental acts of the agency
|| || || || || || || || || || || || || || || ||
agreement is called? - ✔✔Implied authority || || || || ||
Which provision makes the application part of the annuity contract? - ✔✔Entire Contract clause
|| || || || || || || || || || || || ||
Arizona Law require the Human Immunodeficiency Virus (HIV) consent form to? - ✔✔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? - ✔✔Direct Response
|| || || || || || || ||
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
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 ||
DETAILED ANSWERS ||
Which of these is true regarding the exchange of consideration among parties involved in an
|| || || || || || || || || || || || || || ||
insurance contract? - ✔✔Can be unequal || || || || ||
The premiums paid by an employer for his employee's group life insurance are usually considered
|| || || || || || || || || || || || || ||
to be? - ✔✔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? - ✔✔As a section 1035 exchange
|| || || || || || || || || || || || || ||
Which of these is NOT a common life insurance nonforfeiture option? - ✔✔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? - ✔✔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? - ✔✔Bringing legal action against the insurer
|| || || || || || || || || || || || ||
Health care costs can be better controlled by utilizing pre-admission testing. Pre-admission testing
|| || || || || || || || || || || ||
can reduce the? - ✔✔Length of hospitalization
|| || || || || || ||
The "Use ir or Lose it" rule applies to - ✔✔Flexible Savings Account
|| || || || || || || || || || || ||
fee-for-service is a method of administering health insurance benefit payments in which - ✔✔The || || || || || || || || || || || || ||
cost of each service is scheduled
|| || || || || ||
,Use of XYZ Insurance Company brochures, business cards, and rating guides is an example of? -
|| || || || || || || || || || || || || || || ||
✔✔Apparent Authority ||
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 ||
When the court orders an insured to provide a child's health insurance, the insurer must allow the
|| || || || || || || || || || || || || || || || ||
child to be enrolled? - ✔✔At any time
|| || || || || || ||
Which of these statements is NOT a characteristic of the law of large numbers? - ✔✔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? - ✔✔Application
|| || || || || || || || ||
How does the cost for a survivorship life policy compare to the cost of combining two separate
|| || || || || || || || || || || || || || || || ||
individual life insurance policies? - ✔✔Survivorship life policy is lower
|| || || || || || || || ||
How does a continuous premium whole life policy differ from a limited payment whole life
|| || || || || || || || || || || || || || ||
policy? - ✔✔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? -
|| || || || || || || || || || || || || || || || ||
✔✔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? - ✔✔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? - ✔✔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? - ✔✔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) - ✔✔Individual health policy
|| || || || ||
In a qualified retirement plan, the yearly contributions to an employee's account? - ✔✔Are
|| || || || || || || || || || || || || ||
restricted to maximum limits set by the IRS || || || || || || ||
The unwritten authority given to a producer to carry out necessary incidental acts of the agency
|| || || || || || || || || || || || || || || ||
agreement is called? - ✔✔Implied authority || || || || ||
Which provision makes the application part of the annuity contract? - ✔✔Entire Contract clause
|| || || || || || || || || || || || ||
Arizona Law require the Human Immunodeficiency Virus (HIV) consent form to? - ✔✔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? - ✔✔Direct Response
|| || || || || || || ||
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
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 ||
