ARIZONA LIFE AND HEALTH INSURANCE
EXAM 2026 WITH 100% ACCURATE ANSWERS
When the disclosure of an insured's nonpublic information is involved, what is the insurer
obligated to do? - Precise Answer ✔✔Give notice, explain, and allow opting out
Under the Telemarketing Sales Rule, telemarketing calls may NOT be received after - Precise
Answer ✔✔9:00 PM
A health plan offered by private insurance companies is - Precise Answer ✔✔Medicare
Supplement
Chris has a single major medical contract which covers all medical expenses. His plan is
considered to be - Precise 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 - Precise 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 - Precise Answer ✔✔Ten year term insurance for a person aged
55
All of the following are unfair claims settlement practices except - Precise Answer ✔✔An
attempt to settle a claim by arbitration
What is covered under a limited accident and health insurance policy? - Precise Answer
✔✔Limited perils and amounts
A life insurance policy provision that has the ability to reduce the death benefit is called -
Precise 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
- Precise Answer ✔✔Written proof of the occurrence and extent of loss
How are monthly life annuity benefit payments treated under a tax sheltered annuity (TSA)? -
Precise 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? - Precise 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? - Precise 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? - Precise Answer ✔✔When not prohibited by state law
A material change in a modified endowment contract (MEC) results in - Precise 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? - Precise 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 - Precise Answer ✔✔custodial
care
Employer-paid qualified long-term care insurance premiums are typically - Precise Answer
✔✔Excluded from the employee's gross income.
Which statement regarding the certificate of insurance is accurate? - Precise Answer
✔✔Indicates evidence of an employee's insurance coverage
Purchasing insurance is an example of risk - Precise 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? - Precise 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 - Precise Answer ✔✔Experimental and
investigative services
All of these statements concerning group credit life insurance are false EXCEPT - Precise Answer
✔✔The face amount is determined by the outstanding loan balance
Who may terminate coverage under and cancelable health insurance policy? - Precise Answer
✔✔insurer or insured
The interest credited to the cash values of personally-owned non-qualified annuities is
considered - Precise Answer ✔✔tax deferred
An insurer that confines or largely limits the exposures it writes to those of its owners is called -
Precise Answer ✔✔captive
Dividends from a mutual insurance company are paid to whom? - Precise Answer
✔✔Policyholders
A business may purchase an annuity for all of the following reasons EXCEPT - Precise Answer
,✔✔Informally finding a non-qualified deferred compensation plan
An organization that requires healthcare services to be provided by a network of physicians and
hospitals is known as an - Precise Answer ✔✔HMO
In Arizona, and insurer providing small employer group medical plans may discontinue an
employers coverage if - Precise 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) -
Precise Answer ✔✔Group health coverage is NOT available for workers over the age of 65
hold harmless clause is an example of risk - Precise Answer ✔✔to transfer. Shifts liability for
loss from one party to another
What is a "functional assessment" for long-term care benefits? - Precise 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? -
Precise 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" - Precise 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? - Precise Answer ✔✔A
good health statement
The Arizona Life and Disability Insurance Guaranty Fund protects an insured in the event of -
Precise Answer ✔✔The insurers insolvency
After an applicant reads and signs an insurance application, he/she should be conscious of the
fact that - Precise Answer ✔✔a false statement could lead to loss of coverage
How many days notice does the Affordable Care Act require insurers to give before rescinding
coverage? - Precise Answer ✔✔30
Who typically makes the purchase payments in an individual annuity? - Precise Answer
✔✔owner
Disability income policies provide protection for which of the following? - Precise Answer
✔✔Economic death
The reason for backdating a policy is - Precise Answer ✔✔to obtain a premium rate based on an
earlier age
, Pat is covered by a disability income insurance policy that covers disabilities arising from a
work-related illness or injury. The amount of his disability income payments for an on-the-job
injury may be reduced by - Precise Answer ✔✔Benefits paid under workers' compensation
Some standard Medicare Supplement policies include which benefit? - Precise Answer
✔✔hospice care
A terminated employee has how many days upon termination to convert group life insurance
coverage to an individual policy? - Precise Answer ✔✔31 days
Which of the following does medical expense insurance NOT typically cover - Precise Answer
✔✔Treatment in a government facility
Which of the following is a true statement regarding a Medicare supplement policy purchased
during the open enrollment period? - Precise Answer ✔✔The policy will be issued regardless of
health
Which of the following is NOT an allowable exclusion for long-term care insurance policies? -
Precise Answer ✔✔Care for incurable conditions
The insureds consideration given for a health insurance policy is - Precise Answer ✔✔the first
premium payment and the application
Al surrenders his life insurance policy for its cash value. The total of the premiums paid into the
policy minus total dividends received in cash or used to offset premiums is referred to as the -
Precise Answer ✔✔Cost basis
Which of the following is NOT considered to be an expense for surviving family members of a
deceased wage earner? - Precise Answer ✔✔Unemployment tax expenses
Under federal law, which of the following actions may result in a producer becoming
imprisoned? - Precise Answer ✔✔Producer embezzling funds from an insurer
Which of these is a typical result of a concurrent review? - Precise Answer ✔✔The length of
time spent in the hospital is monitored
Who is the beneficiary in a life insurance policy? - Precise Answer ✔✔The stated person or
entity who is designated to receive the death proceeds
Larry wants to purchase an individual disability income policy to ensure that he will not
experience a lapse in income should he become disabled. He has a two-month wage
continuation benefit from his employer. What should the policy elimination period be for his
individual policy? - Precise Answer ✔✔60 days
Which would be described as a beneficiary designation by class? - Precise Answer ✔✔Children
of the insured
EXAM 2026 WITH 100% ACCURATE ANSWERS
When the disclosure of an insured's nonpublic information is involved, what is the insurer
obligated to do? - Precise Answer ✔✔Give notice, explain, and allow opting out
Under the Telemarketing Sales Rule, telemarketing calls may NOT be received after - Precise
Answer ✔✔9:00 PM
A health plan offered by private insurance companies is - Precise Answer ✔✔Medicare
Supplement
Chris has a single major medical contract which covers all medical expenses. His plan is
considered to be - Precise 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 - Precise 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 - Precise Answer ✔✔Ten year term insurance for a person aged
55
All of the following are unfair claims settlement practices except - Precise Answer ✔✔An
attempt to settle a claim by arbitration
What is covered under a limited accident and health insurance policy? - Precise Answer
✔✔Limited perils and amounts
A life insurance policy provision that has the ability to reduce the death benefit is called -
Precise 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
- Precise Answer ✔✔Written proof of the occurrence and extent of loss
How are monthly life annuity benefit payments treated under a tax sheltered annuity (TSA)? -
Precise 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? - Precise 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? - Precise 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? - Precise Answer ✔✔When not prohibited by state law
A material change in a modified endowment contract (MEC) results in - Precise 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? - Precise 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 - Precise Answer ✔✔custodial
care
Employer-paid qualified long-term care insurance premiums are typically - Precise Answer
✔✔Excluded from the employee's gross income.
Which statement regarding the certificate of insurance is accurate? - Precise Answer
✔✔Indicates evidence of an employee's insurance coverage
Purchasing insurance is an example of risk - Precise 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? - Precise 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 - Precise Answer ✔✔Experimental and
investigative services
All of these statements concerning group credit life insurance are false EXCEPT - Precise Answer
✔✔The face amount is determined by the outstanding loan balance
Who may terminate coverage under and cancelable health insurance policy? - Precise Answer
✔✔insurer or insured
The interest credited to the cash values of personally-owned non-qualified annuities is
considered - Precise Answer ✔✔tax deferred
An insurer that confines or largely limits the exposures it writes to those of its owners is called -
Precise Answer ✔✔captive
Dividends from a mutual insurance company are paid to whom? - Precise Answer
✔✔Policyholders
A business may purchase an annuity for all of the following reasons EXCEPT - Precise Answer
,✔✔Informally finding a non-qualified deferred compensation plan
An organization that requires healthcare services to be provided by a network of physicians and
hospitals is known as an - Precise Answer ✔✔HMO
In Arizona, and insurer providing small employer group medical plans may discontinue an
employers coverage if - Precise 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) -
Precise Answer ✔✔Group health coverage is NOT available for workers over the age of 65
hold harmless clause is an example of risk - Precise Answer ✔✔to transfer. Shifts liability for
loss from one party to another
What is a "functional assessment" for long-term care benefits? - Precise 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? -
Precise 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" - Precise 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? - Precise Answer ✔✔A
good health statement
The Arizona Life and Disability Insurance Guaranty Fund protects an insured in the event of -
Precise Answer ✔✔The insurers insolvency
After an applicant reads and signs an insurance application, he/she should be conscious of the
fact that - Precise Answer ✔✔a false statement could lead to loss of coverage
How many days notice does the Affordable Care Act require insurers to give before rescinding
coverage? - Precise Answer ✔✔30
Who typically makes the purchase payments in an individual annuity? - Precise Answer
✔✔owner
Disability income policies provide protection for which of the following? - Precise Answer
✔✔Economic death
The reason for backdating a policy is - Precise Answer ✔✔to obtain a premium rate based on an
earlier age
, Pat is covered by a disability income insurance policy that covers disabilities arising from a
work-related illness or injury. The amount of his disability income payments for an on-the-job
injury may be reduced by - Precise Answer ✔✔Benefits paid under workers' compensation
Some standard Medicare Supplement policies include which benefit? - Precise Answer
✔✔hospice care
A terminated employee has how many days upon termination to convert group life insurance
coverage to an individual policy? - Precise Answer ✔✔31 days
Which of the following does medical expense insurance NOT typically cover - Precise Answer
✔✔Treatment in a government facility
Which of the following is a true statement regarding a Medicare supplement policy purchased
during the open enrollment period? - Precise Answer ✔✔The policy will be issued regardless of
health
Which of the following is NOT an allowable exclusion for long-term care insurance policies? -
Precise Answer ✔✔Care for incurable conditions
The insureds consideration given for a health insurance policy is - Precise Answer ✔✔the first
premium payment and the application
Al surrenders his life insurance policy for its cash value. The total of the premiums paid into the
policy minus total dividends received in cash or used to offset premiums is referred to as the -
Precise Answer ✔✔Cost basis
Which of the following is NOT considered to be an expense for surviving family members of a
deceased wage earner? - Precise Answer ✔✔Unemployment tax expenses
Under federal law, which of the following actions may result in a producer becoming
imprisoned? - Precise Answer ✔✔Producer embezzling funds from an insurer
Which of these is a typical result of a concurrent review? - Precise Answer ✔✔The length of
time spent in the hospital is monitored
Who is the beneficiary in a life insurance policy? - Precise Answer ✔✔The stated person or
entity who is designated to receive the death proceeds
Larry wants to purchase an individual disability income policy to ensure that he will not
experience a lapse in income should he become disabled. He has a two-month wage
continuation benefit from his employer. What should the policy elimination period be for his
individual policy? - Precise Answer ✔✔60 days
Which would be described as a beneficiary designation by class? - Precise Answer ✔✔Children
of the insured
