Exam Simulator - Arizona Life
Insurance Only State Exam Simulator
- At what point are death proceeds paid in a joint life insurance policy? - answer When
the first insured dies
- A life insurance producer's underwriting duties may include - answer A life insurance
producer's underwriting duties may include
- Which of the following is NOT a valid reason for an insurer to contest a life insurance
policy during the policy's first two years of existence? - answer Misstatement of age
- A licensee whose name or address changes must notify the Department of Insurance
within ___ days. - answer30
- According to the needs approach, an emergency reserve fund's primary purpose is to -
answer Cover the cost of unexpected expenses
- An employee requested that the balance of her 401 (k) account be sent directly to her
in one lump sum. Upon receipt of the distribution, she immediately had the funds rolled
over into an IRA. What is the tax consequence of the distribution sent to this employee?
- answerDistribution is subject to federal income tax withholding
- An individual participant personally received eligible rollover funds from a profit-sharing
plan. What is the income tax withholding requirements for this transaction? -
answer20% is withheld for income taxes
- A Keogh plan is a(n) - answerQualified retirement plan for the self employed
- Every producer licensed in Arizona must notify the Director within how many days of
any change of residential, business or e-mail addres? - answer30 days
- A life insurance policy's contingent beneficiary is the - answerperson who receives the
death benefits if the primary beneficiary dies before the insured
- Insurable interest in one's own life is legally considered as - answergenerally unlimited
- Which of the following situations would an insurance agent need to guard against
liability for professional errors and omissions? - answermaking a recommendation to a
potential insured to replace existing coverage
, - Which of the following describes the act of insuring a risk against possible loss? -
answerRisk Transfer
- An insurance policy that can also be classified as a securities product is called -
answervariable life
- Which of the following accurately describes a participating insurance policy? -
answerPolicyowners may be entitled to receive dividends
- What minimum percentage of all eligible employees must participate in a group life
insurance plan if the premiums are completely paid for by the employer? - answer100%
- Which statement regarding the certificate of insurance is accurate? - answerIt
indicates evidence of an employee's insurance coverage
- How much is normally paid to a policyowner in a life (viatical) settlement? -
answerLess than the death benefit
- Al surrenders his life insurance policy for its cash value. The total of premiums paid
into the policy minus total dividends received cash or used to offset premiums is
referred to as the - answerCost basis
- Which tax is normally associated with an individual's death? - answerFederal estate
tax
- An insurable risk requires - answerthat the chance of loss be calculable
- Which of the following is NOT subject to the promise to pay in an insuring clause? -
answerHow the premium is calculated
- A stock insurance company is owned by its - answerShareholders
- Which of these policies is considered a whole life policy? - answerSingle premium life
- Which benefit is normally payable to a life insurance policy owner when the insured's
life expectancy has been severely limited? - answerAccelerated (living) benefit
- A life insurance beneficiary died after receiving only six payments under the policy's
life income settlement option. What happens with the remaining balance of the death
proceed? - answerKept by the insurance company
- Death proceeds from a life insurance policy are typically included in a deceased
insured's gross estate - answerfor federal income tax reasons
- Why do insurers require a minimum number of employees participate in a group
insurance plan? - answerMinimize adverse selection
Insurance Only State Exam Simulator
- At what point are death proceeds paid in a joint life insurance policy? - answer When
the first insured dies
- A life insurance producer's underwriting duties may include - answer A life insurance
producer's underwriting duties may include
- Which of the following is NOT a valid reason for an insurer to contest a life insurance
policy during the policy's first two years of existence? - answer Misstatement of age
- A licensee whose name or address changes must notify the Department of Insurance
within ___ days. - answer30
- According to the needs approach, an emergency reserve fund's primary purpose is to -
answer Cover the cost of unexpected expenses
- An employee requested that the balance of her 401 (k) account be sent directly to her
in one lump sum. Upon receipt of the distribution, she immediately had the funds rolled
over into an IRA. What is the tax consequence of the distribution sent to this employee?
- answerDistribution is subject to federal income tax withholding
- An individual participant personally received eligible rollover funds from a profit-sharing
plan. What is the income tax withholding requirements for this transaction? -
answer20% is withheld for income taxes
- A Keogh plan is a(n) - answerQualified retirement plan for the self employed
- Every producer licensed in Arizona must notify the Director within how many days of
any change of residential, business or e-mail addres? - answer30 days
- A life insurance policy's contingent beneficiary is the - answerperson who receives the
death benefits if the primary beneficiary dies before the insured
- Insurable interest in one's own life is legally considered as - answergenerally unlimited
- Which of the following situations would an insurance agent need to guard against
liability for professional errors and omissions? - answermaking a recommendation to a
potential insured to replace existing coverage
, - Which of the following describes the act of insuring a risk against possible loss? -
answerRisk Transfer
- An insurance policy that can also be classified as a securities product is called -
answervariable life
- Which of the following accurately describes a participating insurance policy? -
answerPolicyowners may be entitled to receive dividends
- What minimum percentage of all eligible employees must participate in a group life
insurance plan if the premiums are completely paid for by the employer? - answer100%
- Which statement regarding the certificate of insurance is accurate? - answerIt
indicates evidence of an employee's insurance coverage
- How much is normally paid to a policyowner in a life (viatical) settlement? -
answerLess than the death benefit
- Al surrenders his life insurance policy for its cash value. The total of premiums paid
into the policy minus total dividends received cash or used to offset premiums is
referred to as the - answerCost basis
- Which tax is normally associated with an individual's death? - answerFederal estate
tax
- An insurable risk requires - answerthat the chance of loss be calculable
- Which of the following is NOT subject to the promise to pay in an insuring clause? -
answerHow the premium is calculated
- A stock insurance company is owned by its - answerShareholders
- Which of these policies is considered a whole life policy? - answerSingle premium life
- Which benefit is normally payable to a life insurance policy owner when the insured's
life expectancy has been severely limited? - answerAccelerated (living) benefit
- A life insurance beneficiary died after receiving only six payments under the policy's
life income settlement option. What happens with the remaining balance of the death
proceed? - answerKept by the insurance company
- Death proceeds from a life insurance policy are typically included in a deceased
insured's gross estate - answerfor federal income tax reasons
- Why do insurers require a minimum number of employees participate in a group
insurance plan? - answerMinimize adverse selection
