ARIZONA LIFE INSURANCE LATEST EXAM TEST
QUESTIONS AND ANSWERS SURE A+
✔✔An organization that requires healthcare services to be provided by a network of
physicians and hospitals is known as an - ✔✔HMO
✔✔In Arizona, and insurer providing small employer group medical plans may
discontinue an employers coverage if - ✔✔The insurer no longer offers the plan to any
employer
✔✔Which of the following statements is NOT true concerning the relationship between
group health insurance plans and Medicare? (Assuming the business has more than 20
employees) - ✔✔Group health coverage is NOT available for workers over the age of
65
✔✔hold harmless clause is an example of risk - ✔✔to transfer. Shifts liability for loss
from one party to another
✔✔What is a "functional assessment" for long-term care benefits? - ✔✔A review of the
insured ability to perform the activities of daily living
✔✔Which is an accurate description of the premium in a graded premium life insurance
policy? - ✔✔Annual increases in premium for a stated number of years then levels off
for the remainder of the contract
✔✔Which of the following BEST describes a "partial disability" - ✔✔Unable to perform
one or more job duties
✔✔An insured may be required to sign which document at policy delivery to ensure
there has not been any adverse medical conditions since the time of the application? -
✔✔A good health statement
✔✔The Arizona Life and Disability Insurance Guaranty Fund protects an insured in the
event of - ✔✔The insurers insolvency
✔✔After an applicant reads and signs an insurance application, he/she should be
conscious of the fact that - ✔✔a false statement could lead to loss of coverage
✔✔How many days notice does the Affordable Care Act require insurers to give before
rescinding coverage? - ✔✔30
✔✔Who typically makes the purchase payments in an individual annuity? - ✔✔owner
,✔✔Disability income policies provide protection for which of the following? -
✔✔Economic death
✔✔The reason for backdating a policy is - ✔✔to obtain a premium rate based on an
earlier age
✔✔Pat is covered by a disability income insurance policy that covers disabilities arising
from a work-related illness or injury. The amount of his disability income payments for
an on-the-job injury may be reduced by - ✔✔Benefits paid under workers' compensation
✔✔Some standard Medicare Supplement policies include which benefit? - ✔✔hospice
care
✔✔A terminated employee has how many days upon termination to convert group life
insurance coverage to an individual policy? - ✔✔31 days
✔✔Which of the following does medical expense insurance NOT typically cover -
✔✔Treatment in a government facility
✔✔Which of the following is a true statement regarding a Medicare supplement policy
purchased during the open enrollment period? - ✔✔The policy will be issued regardless
of health
✔✔Which of the following is NOT an allowable exclusion for long-term care insurance
policies? - ✔✔Care for incurable conditions
✔✔The insureds consideration given for a health insurance policy is - ✔✔the first
premium payment and the application
✔✔Al surrenders his life insurance policy for its cash value. The total of the premiums
paid into the policy minus total dividends received in cash or used to offset premiums is
referred to as the - ✔✔Cost basis
✔✔Which of the following is NOT considered to be an expense for surviving family
members of a deceased wage earner? - ✔✔Unemployment tax expenses
✔✔Under federal law, which of the following actions may result in a producer becoming
imprisoned? - ✔✔Producer embezzling funds from an insurer
✔✔Which of these is a typical result of a concurrent review? - ✔✔The length of time
spent in the hospital is monitored
, ✔✔Who is the beneficiary in a life insurance policy? - ✔✔The stated person or entity
who is designated to receive the death proceeds
✔✔Larry wants to purchase an individual disability income policy to ensure that he will
not experience a lapse in income should he become disabled. He has a two-month
wage continuation benefit from his employer. What should the policy elimination period
be for his individual policy? - ✔✔60 days
✔✔Which would be described as a beneficiary designation by class? - ✔✔Children of
the insured
✔✔The standard provisions of an accident and health insurance policy require that the -
✔✔policy, attached papers, and endorsements constitute the "entire contract"
✔✔In what way are insurance policies said to be aleatory? - ✔✔Involves the potential
for the unequal exchange of value
✔✔If a provision in an accident and health policy does not conform to Arizona's
standards, the insurer must - ✔✔Amend the policy to conform to Arizona's minimum
standards
✔✔Which of the following accurately describes a participating insurance policy -
✔✔Policyowners may be entitled to receive dividends
✔✔An annuity becomes incontestable after it has been in force for - ✔✔2 years
✔✔What could be the potential result of taking out a cash value loan under a life
insurance policy? - ✔✔Reduces the amount receivable upon surrender of the contract
✔✔Which statement concerning a deferred annuity contract is correct? - ✔✔The owner
can be the beneficiary, annuitant, or neither
✔✔The administrator of a reciprocal insurer who manages the premiums collected from
the groups members is called - ✔✔an attorney in fact
✔✔Which of these pharmacy options is typically available to enrollees in a staff model
HMO? - ✔✔An in-house pharmacy
✔✔When a company is licensed by the Department of Insurance to do business in this
state, it becomes - ✔✔an authorized company
✔✔When replacing a life insurance policy, which of the following is advisable? - ✔✔Wait
until the new policy is issued and delivered before surrendering existing policy
QUESTIONS AND ANSWERS SURE A+
✔✔An organization that requires healthcare services to be provided by a network of
physicians and hospitals is known as an - ✔✔HMO
✔✔In Arizona, and insurer providing small employer group medical plans may
discontinue an employers coverage if - ✔✔The insurer no longer offers the plan to any
employer
✔✔Which of the following statements is NOT true concerning the relationship between
group health insurance plans and Medicare? (Assuming the business has more than 20
employees) - ✔✔Group health coverage is NOT available for workers over the age of
65
✔✔hold harmless clause is an example of risk - ✔✔to transfer. Shifts liability for loss
from one party to another
✔✔What is a "functional assessment" for long-term care benefits? - ✔✔A review of the
insured ability to perform the activities of daily living
✔✔Which is an accurate description of the premium in a graded premium life insurance
policy? - ✔✔Annual increases in premium for a stated number of years then levels off
for the remainder of the contract
✔✔Which of the following BEST describes a "partial disability" - ✔✔Unable to perform
one or more job duties
✔✔An insured may be required to sign which document at policy delivery to ensure
there has not been any adverse medical conditions since the time of the application? -
✔✔A good health statement
✔✔The Arizona Life and Disability Insurance Guaranty Fund protects an insured in the
event of - ✔✔The insurers insolvency
✔✔After an applicant reads and signs an insurance application, he/she should be
conscious of the fact that - ✔✔a false statement could lead to loss of coverage
✔✔How many days notice does the Affordable Care Act require insurers to give before
rescinding coverage? - ✔✔30
✔✔Who typically makes the purchase payments in an individual annuity? - ✔✔owner
,✔✔Disability income policies provide protection for which of the following? -
✔✔Economic death
✔✔The reason for backdating a policy is - ✔✔to obtain a premium rate based on an
earlier age
✔✔Pat is covered by a disability income insurance policy that covers disabilities arising
from a work-related illness or injury. The amount of his disability income payments for
an on-the-job injury may be reduced by - ✔✔Benefits paid under workers' compensation
✔✔Some standard Medicare Supplement policies include which benefit? - ✔✔hospice
care
✔✔A terminated employee has how many days upon termination to convert group life
insurance coverage to an individual policy? - ✔✔31 days
✔✔Which of the following does medical expense insurance NOT typically cover -
✔✔Treatment in a government facility
✔✔Which of the following is a true statement regarding a Medicare supplement policy
purchased during the open enrollment period? - ✔✔The policy will be issued regardless
of health
✔✔Which of the following is NOT an allowable exclusion for long-term care insurance
policies? - ✔✔Care for incurable conditions
✔✔The insureds consideration given for a health insurance policy is - ✔✔the first
premium payment and the application
✔✔Al surrenders his life insurance policy for its cash value. The total of the premiums
paid into the policy minus total dividends received in cash or used to offset premiums is
referred to as the - ✔✔Cost basis
✔✔Which of the following is NOT considered to be an expense for surviving family
members of a deceased wage earner? - ✔✔Unemployment tax expenses
✔✔Under federal law, which of the following actions may result in a producer becoming
imprisoned? - ✔✔Producer embezzling funds from an insurer
✔✔Which of these is a typical result of a concurrent review? - ✔✔The length of time
spent in the hospital is monitored
, ✔✔Who is the beneficiary in a life insurance policy? - ✔✔The stated person or entity
who is designated to receive the death proceeds
✔✔Larry wants to purchase an individual disability income policy to ensure that he will
not experience a lapse in income should he become disabled. He has a two-month
wage continuation benefit from his employer. What should the policy elimination period
be for his individual policy? - ✔✔60 days
✔✔Which would be described as a beneficiary designation by class? - ✔✔Children of
the insured
✔✔The standard provisions of an accident and health insurance policy require that the -
✔✔policy, attached papers, and endorsements constitute the "entire contract"
✔✔In what way are insurance policies said to be aleatory? - ✔✔Involves the potential
for the unequal exchange of value
✔✔If a provision in an accident and health policy does not conform to Arizona's
standards, the insurer must - ✔✔Amend the policy to conform to Arizona's minimum
standards
✔✔Which of the following accurately describes a participating insurance policy -
✔✔Policyowners may be entitled to receive dividends
✔✔An annuity becomes incontestable after it has been in force for - ✔✔2 years
✔✔What could be the potential result of taking out a cash value loan under a life
insurance policy? - ✔✔Reduces the amount receivable upon surrender of the contract
✔✔Which statement concerning a deferred annuity contract is correct? - ✔✔The owner
can be the beneficiary, annuitant, or neither
✔✔The administrator of a reciprocal insurer who manages the premiums collected from
the groups members is called - ✔✔an attorney in fact
✔✔Which of these pharmacy options is typically available to enrollees in a staff model
HMO? - ✔✔An in-house pharmacy
✔✔When a company is licensed by the Department of Insurance to do business in this
state, it becomes - ✔✔an authorized company
✔✔When replacing a life insurance policy, which of the following is advisable? - ✔✔Wait
until the new policy is issued and delivered before surrendering existing policy
