ARIZONA LIFE AND HEALTH
INSURANCE EXAM QUESTIONS &
ANSWERS RATED 100% COMPLETE
When the disclosure of an insured's nonpublic information is involved, what is the
insurer obligated to do? - CORRECT ANSWER Give notice, explain, and allow opting
out
Under the Telemarketing Sales Rule, telemarketing calls may NOT be received after -
CORRECT ANSWER 9:00 PM
A health plan offered by private insurance companies is - CORRECT ANSWER
Medicare Supplement
Chris has a single major medical contract which covers all medical expenses. His plan
is considered to be - CORRECT ANSWER comprehensive
In accident and health insurance, 60 days must pass after written proof of loss has been
received by an insurer before the insured may - CORRECT ANSWER Bring legal
action against the insurer
When a ten year renewable term life insurance policy issued at age 45 is renewed, the
premium rate will be the current rate for - CORRECT ANSWER Ten year term
insurance for a person aged 55
All of the following are unfair claims settlement practices except - CORRECT ANSWER
An attempt to settle a claim by arbitration
What is covered under a limited accident and health insurance policy? - CORRECT
ANSWER Limited perils and amounts
A life insurance policy provision that has the ability to reduce the death benefit is called -
CORRECT ANSWER Accelerated (living) benefit
If an accident and health insurance claim form is NOT supplied to the insured within 15
says after the notice of claim, the insured may comply with the proof of loss provision by
submitting - CORRECT ANSWER Written proof of the occurrence and extent of loss
How are monthly life annuity benefit payments treated under a tax sheltered annuity
(TSA)? - CORRECT ANSWER Taxed as ordinary income in the year received
,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
Which of these is an accurate statement regarding the fixed period settlement option on
a life insurance policy? - CORRECT ANSWER A portion of the payments paid to the
beneficiary comes from interest calculated on the proceeds of the policy
Under what circumstance does an accident and health insurer have the right to request
an autopsy? - CORRECT ANSWER When not prohibited by state law
A material change in a modified endowment contract (MEC) results in - CORRECT
ANSWER the seven pay test, adjusted for cash value, being applied again
Under an adjustable life insurance policy, which of the following may NOT be changed
without further underwriting? - CORRECT ANSWER The person insured
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 this EXCEPT for -
CORRECT ANSWER custodial care
Employer-paid qualified long-term care insurance premiums are typically - CORRECT
ANSWER Excluded from the employee's gross income.
Which statement regarding the certificate of insurance is accurate? - CORRECT
ANSWER Indicates evidence of an employee's insurance coverage
Purchasing insurance is an example of risk - CORRECT ANSWER transference
When an applicant applies for a large amount of life insurance coverage, which of the
following would likely NOT be an underwriting requirement? - CORRECT ANSWER
eye examination
A comprehensive major medical health insurance policy contains an eligible expenses
provision which identifies the type of health care services that are covered. All of the
following health care services are typical covered EXCEPT for - CORRECT ANSWER
Experimental and investigative services
All of these statements concerning group credit life insurance are false EXCEPT -
CORRECT ANSWER The face amount is determined by the outstanding loan balance
Who may terminate coverage under and cancelable health insurance policy? -
CORRECT ANSWER insurer or insured
The interest credited to the cash values of personally-owned non-qualified annuities is
considered - CORRECT ANSWER tax deferred
, An insurer that confines or largely limits the exposures it writes to those of its owners is
called - CORRECT ANSWER captive
An organization that requires healthcare services to be provided by a network of
physicians and hospitals is known as an - CORRECT ANSWER HMO
Dividends from a mutual insurance company are paid to whom? - CORRECT
ANSWER Policyholders
A business may purchase an annuity for all of the following reasons EXCEPT -
CORRECT ANSWER Informally finding a non-qualified deferred compensation plan
In Arizona, and insurer providing small employer group medical plans may discontinue
an employers coverage if - CORRECT ANSWER The insurer no longer offers the plan
to any employer
Which of the following statements is NOT true concerning the relationship between
group health insurance plans and Medicare? (Assuming the business has more than 20
employees) - CORRECT ANSWER Group health coverage is NOT available for
workers over the age of 65
hold harmless clause is an example of risk - CORRECT ANSWER to transfer. Shifts
liability for loss from one party to another
What is a "functional assessment" for long-term care benefits? - CORRECT ANSWER
A review of the insured ability to perform the activities of daily living
Which is an accurate description of the premium in a graded premium life insurance
policy? - CORRECT ANSWER Annual increases in premium for a stated number of
years then levels off for the remainder of the contract
Which of the following BEST describes a "partial disability" - CORRECT ANSWER
Unable to perform one or more job duties
An insured may be required to sign which document at policy delivery to ensure there
has not been any adverse medical conditions since the time of the application? -
CORRECT ANSWER A good health statement
The Arizona Life and Disability Insurance Guaranty Fund protects an insured in the
event of - CORRECT ANSWER The insurers insolvency
After an applicant reads and signs an insurance application, he/she should be
conscious of the fact that - CORRECT ANSWER a false statement could lead to loss of
coverage
INSURANCE EXAM QUESTIONS &
ANSWERS RATED 100% COMPLETE
When the disclosure of an insured's nonpublic information is involved, what is the
insurer obligated to do? - CORRECT ANSWER Give notice, explain, and allow opting
out
Under the Telemarketing Sales Rule, telemarketing calls may NOT be received after -
CORRECT ANSWER 9:00 PM
A health plan offered by private insurance companies is - CORRECT ANSWER
Medicare Supplement
Chris has a single major medical contract which covers all medical expenses. His plan
is considered to be - CORRECT ANSWER comprehensive
In accident and health insurance, 60 days must pass after written proof of loss has been
received by an insurer before the insured may - CORRECT ANSWER Bring legal
action against the insurer
When a ten year renewable term life insurance policy issued at age 45 is renewed, the
premium rate will be the current rate for - CORRECT ANSWER Ten year term
insurance for a person aged 55
All of the following are unfair claims settlement practices except - CORRECT ANSWER
An attempt to settle a claim by arbitration
What is covered under a limited accident and health insurance policy? - CORRECT
ANSWER Limited perils and amounts
A life insurance policy provision that has the ability to reduce the death benefit is called -
CORRECT ANSWER Accelerated (living) benefit
If an accident and health insurance claim form is NOT supplied to the insured within 15
says after the notice of claim, the insured may comply with the proof of loss provision by
submitting - CORRECT ANSWER Written proof of the occurrence and extent of loss
How are monthly life annuity benefit payments treated under a tax sheltered annuity
(TSA)? - CORRECT ANSWER Taxed as ordinary income in the year received
,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
Which of these is an accurate statement regarding the fixed period settlement option on
a life insurance policy? - CORRECT ANSWER A portion of the payments paid to the
beneficiary comes from interest calculated on the proceeds of the policy
Under what circumstance does an accident and health insurer have the right to request
an autopsy? - CORRECT ANSWER When not prohibited by state law
A material change in a modified endowment contract (MEC) results in - CORRECT
ANSWER the seven pay test, adjusted for cash value, being applied again
Under an adjustable life insurance policy, which of the following may NOT be changed
without further underwriting? - CORRECT ANSWER The person insured
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 this EXCEPT for -
CORRECT ANSWER custodial care
Employer-paid qualified long-term care insurance premiums are typically - CORRECT
ANSWER Excluded from the employee's gross income.
Which statement regarding the certificate of insurance is accurate? - CORRECT
ANSWER Indicates evidence of an employee's insurance coverage
Purchasing insurance is an example of risk - CORRECT ANSWER transference
When an applicant applies for a large amount of life insurance coverage, which of the
following would likely NOT be an underwriting requirement? - CORRECT ANSWER
eye examination
A comprehensive major medical health insurance policy contains an eligible expenses
provision which identifies the type of health care services that are covered. All of the
following health care services are typical covered EXCEPT for - CORRECT ANSWER
Experimental and investigative services
All of these statements concerning group credit life insurance are false EXCEPT -
CORRECT ANSWER The face amount is determined by the outstanding loan balance
Who may terminate coverage under and cancelable health insurance policy? -
CORRECT ANSWER insurer or insured
The interest credited to the cash values of personally-owned non-qualified annuities is
considered - CORRECT ANSWER tax deferred
, An insurer that confines or largely limits the exposures it writes to those of its owners is
called - CORRECT ANSWER captive
An organization that requires healthcare services to be provided by a network of
physicians and hospitals is known as an - CORRECT ANSWER HMO
Dividends from a mutual insurance company are paid to whom? - CORRECT
ANSWER Policyholders
A business may purchase an annuity for all of the following reasons EXCEPT -
CORRECT ANSWER Informally finding a non-qualified deferred compensation plan
In Arizona, and insurer providing small employer group medical plans may discontinue
an employers coverage if - CORRECT ANSWER The insurer no longer offers the plan
to any employer
Which of the following statements is NOT true concerning the relationship between
group health insurance plans and Medicare? (Assuming the business has more than 20
employees) - CORRECT ANSWER Group health coverage is NOT available for
workers over the age of 65
hold harmless clause is an example of risk - CORRECT ANSWER to transfer. Shifts
liability for loss from one party to another
What is a "functional assessment" for long-term care benefits? - CORRECT ANSWER
A review of the insured ability to perform the activities of daily living
Which is an accurate description of the premium in a graded premium life insurance
policy? - CORRECT ANSWER Annual increases in premium for a stated number of
years then levels off for the remainder of the contract
Which of the following BEST describes a "partial disability" - CORRECT ANSWER
Unable to perform one or more job duties
An insured may be required to sign which document at policy delivery to ensure there
has not been any adverse medical conditions since the time of the application? -
CORRECT ANSWER A good health statement
The Arizona Life and Disability Insurance Guaranty Fund protects an insured in the
event of - CORRECT ANSWER The insurers insolvency
After an applicant reads and signs an insurance application, he/she should be
conscious of the fact that - CORRECT ANSWER a false statement could lead to loss of
coverage
