FINAL EXAM - ARIZONA LIFE AND HEALTH questions and answers 2023/24

FINAL EXAM - ARIZONA LIFE AND HEALTH questions and answers 2023/24 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 Employer-paid qualifies long-term care insurance premiums are typically? - Excluded from the employee's gross income When replacing a life insurance policy, which of the following is advisable? - Wait until the new policy Is issued and deliver before surrendering existing policy Which of these may NOT be deducted from premium payments or the cash value of a variable life insurance policy? - Federal premium taxes A policy owner pays the first annual premium for a $50,000 Life Insurance policy and dies one month after the policy effective fate. Which of these statements is normally true? - Beneficiary receives $50,000 income tax-free A life policy that has premiums that are lower than normal during the early years is called? - Modified Life Which life insurance settlement option pays a stated monthly benefit until both principal and interest are exhausted? - Fixed amount installment option What type of doctor-ordered care assists an individual with performing basic daily activists such as bathing, dressing, eating? - Custodial Care Which of these occurrences could improve an insurer's ability to reduce premiums? - Rate of earnings on investments increase An insured covered under a Disability Income policy is disabled and collecting benefits for a period of two months. He returns to work and is again disabled from the same cause, whereupon benefits continue to be paid. This is an example of which of the following? - Recurrent disability A life annuity with a period certain is characterized as? - Guaranteeing benefit payments for a stated minimum period of time Which life insurance policy option allows the policy owner to have coverage equal to the Net death benefit of the lapsed policy? - Extended term nonforfeiture option For purposes of Disability Income Insurance, earned income would include all of the following EXCEPT - Dividends What must the insurer provide to certificate holders when a group Medicare Supplement insurance policy is terminated and not replaced? - An offer of conversion to individual coverage If a producer misleads or fails to adequately disclose the title and true nature of a policy offered to a potential insured, it may be considered - Misrepresentation James had individual health insurance with two different insurers. The "insurance with other insurers" pr