FINAL EXAM - ARIZONA LIFE
AND HEALTH
Which of these is true regarding the exchange of consideration among
parties involved in an insurance contract? correct answersCan be unequal
The premiums paid by an employer for his employee's group life insurance
are usually considered to be? correct answersTax-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 answersAs a section 1035 exchange
Which of these is NOT a common life insurance nonforfeiture
option? correct answersLife 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
answersCustodial 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 answersBringing legal action against the insurer
Health care costs can be better controlled by utilizing pre-admission
testing. Pre- admission testing can reduce the? correct answersLength
of hospitalization
The "Use ir or Lose it" rule applies to correct answersFlexible Savings
Account
fee-for-service is a method of administering health insurance benefit
payments in which correct answersThe cost of each service is scheduled
Use of XYZ Insurance Company brochures, business cards, and rating
guides is an example of? correct answersApparent Authority
A life insurance illustration showing future premiums being paid out of no
guaranteed values must disclose that? correct answersThe 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 answersAt any time
Which of these statements is NOT a characteristic of the law of large
numbers? correct answersRates 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 answersApplication
How does the cost for a survivorship life policy compare to the cost of
combining two separate individual life insurance policies? correct
answersSurvivorship life policy is lower
How does a continuous premium whole life policy differ from a limited
payment whole life policy? correct answersThe 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 answersAgent'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 answersThe 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
answersThe 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 answersMay 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 answersIndividual health policy
In a qualified retirement plan, the yearly contributions to an employee's
account? correct answersAre 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 answersImplied
authority
Which provision makes the application part of the annuity
contract? correct answersEntire Contract clause
Arizona Law require the Human Immunodeficiency Virus (HIV) consent form
to? correct answersDisclose 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
answersDirect Response
A policy owner has just borrowed from a life insurance policy's cash
value. Which of these statements is true? correct answersIn 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
answersWritten consent from the state insurance regulatory agency
Employer-paid qualifies long-term care insurance premiums are
typically? correct answersExcluded from the employee's gross income
When replacing a life insurance policy, which of the following is
advisable? correct answersWait 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? correct answersFederal 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? correct answersBeneficiary receives $50,000
income tax-free
A life policy that has premiums that are lower than normal during the
early years is called? correct answersModified Life
Which life insurance settlement option pays a stated monthly benefit until
both principal and interest are exhausted? correct answersFixed amount
installment option
What type of doctor-ordered care assists an individual with performing
basic daily activists such as bathing, dressing, eating? correct
answersCustodial Care
Which of these occurrences could improve an insurer's ability to reduce
premiums? correct answersRate 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? correct answersRecurrent
disability
A life annuity with a period certain is characterized as? correct
answersGuaranteeing benefit payments for a stated minimum period of
time
AND HEALTH
Which of these is true regarding the exchange of consideration among
parties involved in an insurance contract? correct answersCan be unequal
The premiums paid by an employer for his employee's group life insurance
are usually considered to be? correct answersTax-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 answersAs a section 1035 exchange
Which of these is NOT a common life insurance nonforfeiture
option? correct answersLife 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
answersCustodial 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 answersBringing legal action against the insurer
Health care costs can be better controlled by utilizing pre-admission
testing. Pre- admission testing can reduce the? correct answersLength
of hospitalization
The "Use ir or Lose it" rule applies to correct answersFlexible Savings
Account
fee-for-service is a method of administering health insurance benefit
payments in which correct answersThe cost of each service is scheduled
Use of XYZ Insurance Company brochures, business cards, and rating
guides is an example of? correct answersApparent Authority
A life insurance illustration showing future premiums being paid out of no
guaranteed values must disclose that? correct answersThe 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 answersAt any time
Which of these statements is NOT a characteristic of the law of large
numbers? correct answersRates 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 answersApplication
How does the cost for a survivorship life policy compare to the cost of
combining two separate individual life insurance policies? correct
answersSurvivorship life policy is lower
How does a continuous premium whole life policy differ from a limited
payment whole life policy? correct answersThe 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 answersAgent'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 answersThe 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
answersThe 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 answersMay 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 answersIndividual health policy
In a qualified retirement plan, the yearly contributions to an employee's
account? correct answersAre 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 answersImplied
authority
Which provision makes the application part of the annuity
contract? correct answersEntire Contract clause
Arizona Law require the Human Immunodeficiency Virus (HIV) consent form
to? correct answersDisclose 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
answersDirect Response
A policy owner has just borrowed from a life insurance policy's cash
value. Which of these statements is true? correct answersIn 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
answersWritten consent from the state insurance regulatory agency
Employer-paid qualifies long-term care insurance premiums are
typically? correct answersExcluded from the employee's gross income
When replacing a life insurance policy, which of the following is
advisable? correct answersWait 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? correct answersFederal 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? correct answersBeneficiary receives $50,000
income tax-free
A life policy that has premiums that are lower than normal during the
early years is called? correct answersModified Life
Which life insurance settlement option pays a stated monthly benefit until
both principal and interest are exhausted? correct answersFixed amount
installment option
What type of doctor-ordered care assists an individual with performing
basic daily activists such as bathing, dressing, eating? correct
answersCustodial Care
Which of these occurrences could improve an insurer's ability to reduce
premiums? correct answersRate 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? correct answersRecurrent
disability
A life annuity with a period certain is characterized as? correct
answersGuaranteeing benefit payments for a stated minimum period of
time
