Arizona Life Insurance Chapter 11.
Laws and Rules
An insurance company may delay the payment of the cash value of a surrendered
whole life insurance policy for up to - answer6 months
The Arizona Life and Disability Insurance Guaranty Fund protects an insured in the
event of - answer The insurer's insolvency
A producer's license may be suspended - answer For misappropriation of premiums
A life insurance producer is required to give a disclosure notice about information
practices to an applicant or proposed insured - answer Prior to or at the time of signing
the application
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 - answer Misrepresentation
A producer must maintain customer records for how many years following the
completion date of the insurance transaction? - answer Three
A whole life policy that provides a choice of dividend options must include the following
statement about dividends - answerThey are not guaranteed
A licensee whose name or address changes must notify the Department of Insurance
within - answer30 days
Which of these situations would NOT potentially involve a prison sentence under
Federal law? - answerTransacting insurance with a nonresident license
Unless it is regarding fraud, which of the following statements about the contestability of
a life Insurance policy is true? - answerThe policy can usually only be contested by the
insurer during the first two years of contract
When an individual purchases insurance as a result of threats made by the producer,
there has been a violation of - answerUnfair trade practice laws
A life insurance illustration showing future premiums being paid out of nonguaranteed
values must disclose that - answerThe policyowner may need to resume premium
payments depending on actual results
, Under the Telemarketing Sales Rule, telemarketing calls may NOT be received after -
answer9:00 PM
The administrator of a reciprocal insurer who manages the premiums collected from the
group's members is called - answerAn attorney in fact
The period during which a buyer may return a fixed annuity contract for a full refund is
called the - answerFree look period
When replacing a life insurance policy, which of the following is advisable? -
answerWait until the new policy is issued and delivered before surrendering existing
policy
Arizona law requires the Human Immunodeficiency Virus (HIV) consent form to -
answerDisclose the types of individuals or organizations that may receive a copy of the
test results
Under the Fair Credit Reporting Act, which statement is true? - answerThe consumer
who was investigated must be advised that credit, insurance or employment was denied
because of an unfavorable report.
All of the following may obtain a temporary's producer's license EXCEPT - answerAn
employee of a licensed producer who is retired
Illustrations used in the sale of life insurance contain a statement that must be signed by
- answerThe producer
Which provision makes the application part of the annuity contract? - answerEntire
Contract clause
A life insurance policy in Arizona becomes incontestable after it has been in force for -
answer2 years
Under the Telemarketing Sales Rule, telemarketing calls may ONLY be received
between the hours of - answer9:00 AM and 10:00 PM
The refusal of doing business with an individual or business is call a(n) - answerBoycott
Proceeds of a life settlement contract could be subject to the claims of -
answerCreditors
An insurer operating in the U.S. but headquartered outside the U.S. is - answeran alien
insurer
An insurer that confines or largely limits the exposures it writes to those of its owners is
called - answerCaptive
Laws and Rules
An insurance company may delay the payment of the cash value of a surrendered
whole life insurance policy for up to - answer6 months
The Arizona Life and Disability Insurance Guaranty Fund protects an insured in the
event of - answer The insurer's insolvency
A producer's license may be suspended - answer For misappropriation of premiums
A life insurance producer is required to give a disclosure notice about information
practices to an applicant or proposed insured - answer Prior to or at the time of signing
the application
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 - answer Misrepresentation
A producer must maintain customer records for how many years following the
completion date of the insurance transaction? - answer Three
A whole life policy that provides a choice of dividend options must include the following
statement about dividends - answerThey are not guaranteed
A licensee whose name or address changes must notify the Department of Insurance
within - answer30 days
Which of these situations would NOT potentially involve a prison sentence under
Federal law? - answerTransacting insurance with a nonresident license
Unless it is regarding fraud, which of the following statements about the contestability of
a life Insurance policy is true? - answerThe policy can usually only be contested by the
insurer during the first two years of contract
When an individual purchases insurance as a result of threats made by the producer,
there has been a violation of - answerUnfair trade practice laws
A life insurance illustration showing future premiums being paid out of nonguaranteed
values must disclose that - answerThe policyowner may need to resume premium
payments depending on actual results
, Under the Telemarketing Sales Rule, telemarketing calls may NOT be received after -
answer9:00 PM
The administrator of a reciprocal insurer who manages the premiums collected from the
group's members is called - answerAn attorney in fact
The period during which a buyer may return a fixed annuity contract for a full refund is
called the - answerFree look period
When replacing a life insurance policy, which of the following is advisable? -
answerWait until the new policy is issued and delivered before surrendering existing
policy
Arizona law requires the Human Immunodeficiency Virus (HIV) consent form to -
answerDisclose the types of individuals or organizations that may receive a copy of the
test results
Under the Fair Credit Reporting Act, which statement is true? - answerThe consumer
who was investigated must be advised that credit, insurance or employment was denied
because of an unfavorable report.
All of the following may obtain a temporary's producer's license EXCEPT - answerAn
employee of a licensed producer who is retired
Illustrations used in the sale of life insurance contain a statement that must be signed by
- answerThe producer
Which provision makes the application part of the annuity contract? - answerEntire
Contract clause
A life insurance policy in Arizona becomes incontestable after it has been in force for -
answer2 years
Under the Telemarketing Sales Rule, telemarketing calls may ONLY be received
between the hours of - answer9:00 AM and 10:00 PM
The refusal of doing business with an individual or business is call a(n) - answerBoycott
Proceeds of a life settlement contract could be subject to the claims of -
answerCreditors
An insurer operating in the U.S. but headquartered outside the U.S. is - answeran alien
insurer
An insurer that confines or largely limits the exposures it writes to those of its owners is
called - answerCaptive
