ARIZONA LIFE INSURANCE STUDY EXAM GUIDE
QUESTIONS AND ANSWERS SURE A+
✔✔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
✔✔Which life insurance settlement option pays a stated monthly benefit until both
principal and interest are exhausted? - ✔✔Fixed amount installment option
✔✔Unless it is regarding fraud, which of the following statements about the
contestability of a life insurance policy is true? - ✔✔The policy can usually only be
contested by the insurer during the first two years of the contract
✔✔In Arizona, an attempt to defraud an insurance company is considered - ✔✔A felony
✔✔Which statement about group life insurance is INCORRECT - ✔✔Each participant
requires evidence of insurability
✔✔Individual health insurance policies must cover mentally and physically handicapped
dependent children - ✔✔Until they become self-supportive
✔✔Julie is in need of assistance with one or two activities of daily living. She may be
eligible for a(n) - ✔✔assisted living facility
✔✔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 the following is NOT a dividend option for a life insurance policy? -
✔✔Receiving the entire policy cash value
✔✔A major medical expense plan typically includes coverage for hospital room and
board. Which of the following is normally covered under the category "room and board"?
- ✔✔General nursing care
✔✔The disability income policy most likely to have been issued on a substandard basis
is - ✔✔Non-cancelable with a health condition exclusion rider
✔✔A group-owned insurance company that is formed to assume and spread the liability
risks of its members is known as a - ✔✔risk retention group
,✔✔Misrepresenting pertinent policy provisions relating to coverage after a loss is -
✔✔An unfair claims settlement practice
✔✔Which type of Medicare supplement information can be used without prior state
approval? - ✔✔Government publications
✔✔Which statement is NOT true regarding health insurance policies that provide limited
benefits? - ✔✔Only persons under the age of 65 are eligible
✔✔Which of the following statements accurately describes the financial impact of total
disability? - ✔✔May be worse than the financial impact of death
✔✔Which of the following is NOT a valid contract exchange? - ✔✔An annuity
exchanged for a life insurance policy
✔✔Which of the following can be defined as "the potential for loss"? - ✔✔Risk
✔✔What are reasonable and customary charges for health insurance primarily based
on? - ✔✔Average charges within a geographic region
✔✔What is the face amount of a $50,000 graded death benefit life insurance policy
when the policy is issued? - ✔✔Under $50,000 initially, but increases over time
✔✔Which of these is true regarding the exchange of consideration among parties
involved in an insurance contract? - ✔✔Can be unequal
✔✔Which statement regarding universal life insurance is correct? - ✔✔Cash value
accumulations have a guaranteed minimum interest rate
✔✔All of the following may obtain a temporary producers license EXCEPT - ✔✔An
employee of a licensed producer who is retired
✔✔When an individual purchases insurance as a result of threats made by the
producer, there has been a violation of - ✔✔Unfair trade practice laws
✔✔In an individual retirement account (IRA), rollover contributions are - ✔✔Unlimited by
dollar amount
✔✔How often must a notice of information practices be given to a policyholder? - ✔✔At
least once a year
, ✔✔A licensee whose name or address changes must notify the department of
insurance within - ✔✔30 days
✔✔A policy owner pays the first annual premium for a 50,000 life insurance policy and
dies one month after the policy effective date. Which of these statements is normally
true? - ✔✔Beneficiary receives 50,000 income tax free
✔✔Christine is receiving benefits provided from her disability income insurance. As
compared to her previous earnings, the disability benefits should be - ✔✔somewhat
less
✔✔An insurance company may delay the payment of the cash value of a surrendered
whole life insurance policy for up to - ✔✔6 month
✔✔A life insurance policyowner would like a dividend option that results in a limited
current outlay of funds. Which dividend option would be chose? - ✔✔Reduction of
premium payment
✔✔When a Medicare Supplement insurance policy is being replaced, who must sign the
notice of replacement? - ✔✔The producer and the applicant
✔✔Security laws passed by Congress are enforced by which Federal agency? -
✔✔Security and Exchange Commission (SEC)
✔✔The principal source of info concerning an applicants identity, age, and marital
status is found in the - ✔✔Completed application
✔✔What determines how much an annuitant is paid for a variable annuity? - ✔✔The
market value fluctuations of the securities backing it
✔✔Which life insurance policy option allows the policyowner to have coverage equal to
the net death benefit of the lapsed policy? - ✔✔Extended term nonforfeiture option
✔✔Illustrations used in the sale of life insurance contain a statement that must be
signed by - ✔✔producer
✔✔According to ERISA regulations, a summary plan description must be provided to a
new plan member within _____ Days of the members eligibility date. - ✔✔90
✔✔The authority to change the beneficiary in an individual annuity lies with the -
✔✔Owner
QUESTIONS AND ANSWERS SURE A+
✔✔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
✔✔Which life insurance settlement option pays a stated monthly benefit until both
principal and interest are exhausted? - ✔✔Fixed amount installment option
✔✔Unless it is regarding fraud, which of the following statements about the
contestability of a life insurance policy is true? - ✔✔The policy can usually only be
contested by the insurer during the first two years of the contract
✔✔In Arizona, an attempt to defraud an insurance company is considered - ✔✔A felony
✔✔Which statement about group life insurance is INCORRECT - ✔✔Each participant
requires evidence of insurability
✔✔Individual health insurance policies must cover mentally and physically handicapped
dependent children - ✔✔Until they become self-supportive
✔✔Julie is in need of assistance with one or two activities of daily living. She may be
eligible for a(n) - ✔✔assisted living facility
✔✔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 the following is NOT a dividend option for a life insurance policy? -
✔✔Receiving the entire policy cash value
✔✔A major medical expense plan typically includes coverage for hospital room and
board. Which of the following is normally covered under the category "room and board"?
- ✔✔General nursing care
✔✔The disability income policy most likely to have been issued on a substandard basis
is - ✔✔Non-cancelable with a health condition exclusion rider
✔✔A group-owned insurance company that is formed to assume and spread the liability
risks of its members is known as a - ✔✔risk retention group
,✔✔Misrepresenting pertinent policy provisions relating to coverage after a loss is -
✔✔An unfair claims settlement practice
✔✔Which type of Medicare supplement information can be used without prior state
approval? - ✔✔Government publications
✔✔Which statement is NOT true regarding health insurance policies that provide limited
benefits? - ✔✔Only persons under the age of 65 are eligible
✔✔Which of the following statements accurately describes the financial impact of total
disability? - ✔✔May be worse than the financial impact of death
✔✔Which of the following is NOT a valid contract exchange? - ✔✔An annuity
exchanged for a life insurance policy
✔✔Which of the following can be defined as "the potential for loss"? - ✔✔Risk
✔✔What are reasonable and customary charges for health insurance primarily based
on? - ✔✔Average charges within a geographic region
✔✔What is the face amount of a $50,000 graded death benefit life insurance policy
when the policy is issued? - ✔✔Under $50,000 initially, but increases over time
✔✔Which of these is true regarding the exchange of consideration among parties
involved in an insurance contract? - ✔✔Can be unequal
✔✔Which statement regarding universal life insurance is correct? - ✔✔Cash value
accumulations have a guaranteed minimum interest rate
✔✔All of the following may obtain a temporary producers license EXCEPT - ✔✔An
employee of a licensed producer who is retired
✔✔When an individual purchases insurance as a result of threats made by the
producer, there has been a violation of - ✔✔Unfair trade practice laws
✔✔In an individual retirement account (IRA), rollover contributions are - ✔✔Unlimited by
dollar amount
✔✔How often must a notice of information practices be given to a policyholder? - ✔✔At
least once a year
, ✔✔A licensee whose name or address changes must notify the department of
insurance within - ✔✔30 days
✔✔A policy owner pays the first annual premium for a 50,000 life insurance policy and
dies one month after the policy effective date. Which of these statements is normally
true? - ✔✔Beneficiary receives 50,000 income tax free
✔✔Christine is receiving benefits provided from her disability income insurance. As
compared to her previous earnings, the disability benefits should be - ✔✔somewhat
less
✔✔An insurance company may delay the payment of the cash value of a surrendered
whole life insurance policy for up to - ✔✔6 month
✔✔A life insurance policyowner would like a dividend option that results in a limited
current outlay of funds. Which dividend option would be chose? - ✔✔Reduction of
premium payment
✔✔When a Medicare Supplement insurance policy is being replaced, who must sign the
notice of replacement? - ✔✔The producer and the applicant
✔✔Security laws passed by Congress are enforced by which Federal agency? -
✔✔Security and Exchange Commission (SEC)
✔✔The principal source of info concerning an applicants identity, age, and marital
status is found in the - ✔✔Completed application
✔✔What determines how much an annuitant is paid for a variable annuity? - ✔✔The
market value fluctuations of the securities backing it
✔✔Which life insurance policy option allows the policyowner to have coverage equal to
the net death benefit of the lapsed policy? - ✔✔Extended term nonforfeiture option
✔✔Illustrations used in the sale of life insurance contain a statement that must be
signed by - ✔✔producer
✔✔According to ERISA regulations, a summary plan description must be provided to a
new plan member within _____ Days of the members eligibility date. - ✔✔90
✔✔The authority to change the beneficiary in an individual annuity lies with the -
✔✔Owner
