Arizona Life Insurance Exam
a whole life policy that provides a choice of dividend options include
the following statement about dividends
they accrue at a guaranteed
rate they are deferred for
one year they are not
guaranteed
they are guaranteed after
the first year correct
answersthey are not
guaranteed
When there is a named
beneficiary on a life
insurance policy, the death
benefits
1. are directed to a trustee if
the insured has any
outstanding debts
2.are paid directly to the insured`s creditors, with any remaining balance
forwarded to the beneficiary
3. are paid directly to the beneficiary, minus any debt claims by the
insured`s creditors
4.are paid directly to the beneficiary without interference from the
insured`s creditors correct answersare paid directly to the beneficiary
without interference from the insured`s creditors
What determines how much an annuitant is paid for a variable annuity
5. varies according to how many outstanding annuitant is paid for a
variable annuity
6. payments fluctuate as annuitant gets older
7. the market value variations of the securities backing it
8.varies according to the insurers investments in its general
account correct answersthe market value variations of the
securities backing it
a terminated employee has how many days upon termination to
,15 days
30 days
31 days correct answers31 days
Rick owns a variable universal life insurance policy and chooses a variable
death benefit option. what will typically happen to the death benefit as a
result of this section
1. remain the same
2 decrease but never increase
3 increase but never decrease
4 fluctuate with changes in the cash amount correct answersfluctuate with
changes in the cash amount
the policy provision that permits an employee to change from group life
insurance to an individual policy is called
1 assignment provision
2 conversion provision
3 certificate provision
4 modification provision correct answersconversion provision
when the deferred annuity is surrendered, who must sign the
authorization to do so owner
annuitant and
beneficiary annuitant
all parties involved
correct answersowner
Which of the following
is NOT a valid
contract exchange?
1. an annuity
exchanged for a life
insurance policy
2 an annuity
exchanged for
another annuity
3 a life insurance
policy exchanged
,4 a life insurance policy exchanged for another annuity correct
answersan annuity exchanged for a life insurance policy
which of these statements regarding the extended term insurance
nonforfeiture option in a life policy is accurate
evidence of insurability is required
coverage remains until death of the
insured
the premium to purchase the
coverage comes from the policy`s
cash value
cash value will continue to grow correct answersthe premium to purchase
the coverage comes from the policy`s cash value
a life insurance policy that includes a return of premium rider will pay the
beneficiary how much upon the insured death
total premiums paid plus the policy face
amount face amount plus interest
interest acquired plus total premiums
paid
face amount minus any outstanding loan balances correct answerstotal
premiums paid plus the policy face amount
which of these is NOT considered the responsibility of a producer
during the underwriting process
collecting additional medical information if needed
promptly sending the completed application to the insurance
company forwarding any material personal observations to
the insurer
selecting the final approval date correct answersselecting the final
approval date which of the following is NOT guaranteed in a whole life
policy
settlement
options
nonforfeiture
, policy loan values correct answersdividend scale
all of these duties that a producer may be required to perform when
delivering an insurance policy EXCEPT
acquire a statement of good health
signature gather the initial premium
review policy with applicant
leave a conditional receipt with client correct answersleave a conditional
receipt with client
laura added a children`s rider to her life insurance policy. what type of
coverage was added
level term
increasing
term
decreasing
term
juvenile term
correct
answerslevel
term
what would be the disadvantage of naming a trust as a beneficiary of a
life insurance policy
trusts cannot be formed for life insurance
purposes trust administrations fees would
reduce policy proceeds trusts cannot be used if a
minor is the beneficiary
trustee must be a bank or brokerage correct answerstrust administrations
fees would reduce policy proceeds
what does a fixed life annuity offer protection
against inflation
premature death
inadequate retirement planning
a whole life policy that provides a choice of dividend options include
the following statement about dividends
they accrue at a guaranteed
rate they are deferred for
one year they are not
guaranteed
they are guaranteed after
the first year correct
answersthey are not
guaranteed
When there is a named
beneficiary on a life
insurance policy, the death
benefits
1. are directed to a trustee if
the insured has any
outstanding debts
2.are paid directly to the insured`s creditors, with any remaining balance
forwarded to the beneficiary
3. are paid directly to the beneficiary, minus any debt claims by the
insured`s creditors
4.are paid directly to the beneficiary without interference from the
insured`s creditors correct answersare paid directly to the beneficiary
without interference from the insured`s creditors
What determines how much an annuitant is paid for a variable annuity
5. varies according to how many outstanding annuitant is paid for a
variable annuity
6. payments fluctuate as annuitant gets older
7. the market value variations of the securities backing it
8.varies according to the insurers investments in its general
account correct answersthe market value variations of the
securities backing it
a terminated employee has how many days upon termination to
,15 days
30 days
31 days correct answers31 days
Rick owns a variable universal life insurance policy and chooses a variable
death benefit option. what will typically happen to the death benefit as a
result of this section
1. remain the same
2 decrease but never increase
3 increase but never decrease
4 fluctuate with changes in the cash amount correct answersfluctuate with
changes in the cash amount
the policy provision that permits an employee to change from group life
insurance to an individual policy is called
1 assignment provision
2 conversion provision
3 certificate provision
4 modification provision correct answersconversion provision
when the deferred annuity is surrendered, who must sign the
authorization to do so owner
annuitant and
beneficiary annuitant
all parties involved
correct answersowner
Which of the following
is NOT a valid
contract exchange?
1. an annuity
exchanged for a life
insurance policy
2 an annuity
exchanged for
another annuity
3 a life insurance
policy exchanged
,4 a life insurance policy exchanged for another annuity correct
answersan annuity exchanged for a life insurance policy
which of these statements regarding the extended term insurance
nonforfeiture option in a life policy is accurate
evidence of insurability is required
coverage remains until death of the
insured
the premium to purchase the
coverage comes from the policy`s
cash value
cash value will continue to grow correct answersthe premium to purchase
the coverage comes from the policy`s cash value
a life insurance policy that includes a return of premium rider will pay the
beneficiary how much upon the insured death
total premiums paid plus the policy face
amount face amount plus interest
interest acquired plus total premiums
paid
face amount minus any outstanding loan balances correct answerstotal
premiums paid plus the policy face amount
which of these is NOT considered the responsibility of a producer
during the underwriting process
collecting additional medical information if needed
promptly sending the completed application to the insurance
company forwarding any material personal observations to
the insurer
selecting the final approval date correct answersselecting the final
approval date which of the following is NOT guaranteed in a whole life
policy
settlement
options
nonforfeiture
, policy loan values correct answersdividend scale
all of these duties that a producer may be required to perform when
delivering an insurance policy EXCEPT
acquire a statement of good health
signature gather the initial premium
review policy with applicant
leave a conditional receipt with client correct answersleave a conditional
receipt with client
laura added a children`s rider to her life insurance policy. what type of
coverage was added
level term
increasing
term
decreasing
term
juvenile term
correct
answerslevel
term
what would be the disadvantage of naming a trust as a beneficiary of a
life insurance policy
trusts cannot be formed for life insurance
purposes trust administrations fees would
reduce policy proceeds trusts cannot be used if a
minor is the beneficiary
trustee must be a bank or brokerage correct answerstrust administrations
fees would reduce policy proceeds
what does a fixed life annuity offer protection
against inflation
premature death
inadequate retirement planning
