ARIZONA LIFE AND HEALTH FINAL EXAM WITH ANSWERS
Which |of |these |is |true |regarding |the |exchange |of |consideration |among |parties |involved |in |an
|insurance |contract? |- |correct |answer |-Can |be |unequal
The |premiums |paid |by |an |employer |for |his |employee's |group |life |insurance |are |usually |considered
|to |be? |- |correct |answer |-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? |- |correct |answer |-As |a |section |1035 |exchange
Which |of |these |is |NOT |a |common |life |insurance |nonforfeiture |option? |- |correct |answer |-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? |- |correct |answer |-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? |- |correct |answer |-Bringing |legal |action |against |the |insurer
Health |care |costs |can |be |better |controlled |by |utilizing |pre-admission |testing. |Pre-admission |testing
|can |reduce |the? |- |correct |answer |-Length |of |hospitalization
The |"Use |ir |or |Lose |it" |rule |applies |to |- |correct |answer |-Flexible |Savings |Account
fee-for-service |is |a |method |of |administering |health |insurance |benefit |payments |in |which |- |correct
|answer |-The |cost |of |each |service |is |scheduled
Use |of |XYZ |Insurance |Company |brochures, |business |cards, |and |rating |guides |is |an |example |of? |-
|correct |answer |-Apparent |Authority
,A |life |insurance |illustration |showing |future |premiums |being |paid |out |of |no |guaranteed |values |must
|disclose |that? |- |correct |answer |-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? |- |correct |answer |-At |any |time
Which |of |these |statements |is |NOT |a |characteristic |of |the |law |of |large |numbers? |- |correct |answer |-
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? |- |correct |answer |-Application
How |does |the |cost |for |a |survivorship |life |policy |compare |to |the |cost |of |combining |two |separate
|individual |life |insurance |policies? |- |correct |answer |-Survivorship |life |policy |is |lower
How |does |a |continuous |premium |whole |life |policy |differ |from |a |limited |payment |whole |life |policy?
|- |correct |answer |-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? |- |correct
|answer |-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? |- |correct |answer |-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? |- |correct |answer |-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? |- |correct |answer |-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) |- |correct |answer |-Individual |health |policy
In |a |qualified |retirement |plan, |the |yearly |contributions |to |an |employee's |account? |- |correct |answer
|-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? |- |correct |answer |-Implied |authority
Which |provision |makes |the |application |part |of |the |annuity |contract? |- |correct |answer |-Entire
|Contract |clause
Arizona |Law |require |the |Human |Immunodeficiency |Virus |(HIV) |consent |form |to? |- |correct |answer |-
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? |- |correct |answer |-Direct |Response
A |policy |owner |has |just |borrowed |from |a |life |insurance |policy's |cash |value. |Which |of |these
|statements |is |true? |- |correct |answer |-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? |- |correct |answer |-Written |consent |from |the |state
|insurance |regulatory |agency
Employer-paid |qualifies |long-term |care |insurance |premiums |are |typically? |- |correct |answer |-
Excluded |from |the |employee's |gross |income
When |replacing |a |life |insurance |policy, |which |of |the |following |is |advisable? |- |correct |answer |-Wait
|until |the |new |policy |Is |issued |and |deliver |before |surrendering |existing |policy
Which |of |these |is |true |regarding |the |exchange |of |consideration |among |parties |involved |in |an
|insurance |contract? |- |correct |answer |-Can |be |unequal
The |premiums |paid |by |an |employer |for |his |employee's |group |life |insurance |are |usually |considered
|to |be? |- |correct |answer |-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? |- |correct |answer |-As |a |section |1035 |exchange
Which |of |these |is |NOT |a |common |life |insurance |nonforfeiture |option? |- |correct |answer |-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? |- |correct |answer |-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? |- |correct |answer |-Bringing |legal |action |against |the |insurer
Health |care |costs |can |be |better |controlled |by |utilizing |pre-admission |testing. |Pre-admission |testing
|can |reduce |the? |- |correct |answer |-Length |of |hospitalization
The |"Use |ir |or |Lose |it" |rule |applies |to |- |correct |answer |-Flexible |Savings |Account
fee-for-service |is |a |method |of |administering |health |insurance |benefit |payments |in |which |- |correct
|answer |-The |cost |of |each |service |is |scheduled
Use |of |XYZ |Insurance |Company |brochures, |business |cards, |and |rating |guides |is |an |example |of? |-
|correct |answer |-Apparent |Authority
,A |life |insurance |illustration |showing |future |premiums |being |paid |out |of |no |guaranteed |values |must
|disclose |that? |- |correct |answer |-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? |- |correct |answer |-At |any |time
Which |of |these |statements |is |NOT |a |characteristic |of |the |law |of |large |numbers? |- |correct |answer |-
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? |- |correct |answer |-Application
How |does |the |cost |for |a |survivorship |life |policy |compare |to |the |cost |of |combining |two |separate
|individual |life |insurance |policies? |- |correct |answer |-Survivorship |life |policy |is |lower
How |does |a |continuous |premium |whole |life |policy |differ |from |a |limited |payment |whole |life |policy?
|- |correct |answer |-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? |- |correct
|answer |-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? |- |correct |answer |-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? |- |correct |answer |-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? |- |correct |answer |-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) |- |correct |answer |-Individual |health |policy
In |a |qualified |retirement |plan, |the |yearly |contributions |to |an |employee's |account? |- |correct |answer
|-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? |- |correct |answer |-Implied |authority
Which |provision |makes |the |application |part |of |the |annuity |contract? |- |correct |answer |-Entire
|Contract |clause
Arizona |Law |require |the |Human |Immunodeficiency |Virus |(HIV) |consent |form |to? |- |correct |answer |-
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? |- |correct |answer |-Direct |Response
A |policy |owner |has |just |borrowed |from |a |life |insurance |policy's |cash |value. |Which |of |these
|statements |is |true? |- |correct |answer |-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? |- |correct |answer |-Written |consent |from |the |state
|insurance |regulatory |agency
Employer-paid |qualifies |long-term |care |insurance |premiums |are |typically? |- |correct |answer |-
Excluded |from |the |employee's |gross |income
When |replacing |a |life |insurance |policy, |which |of |the |following |is |advisable? |- |correct |answer |-Wait
|until |the |new |policy |Is |issued |and |deliver |before |surrendering |existing |policy
