FINAL EXAM - ARIZONA LIFE AND HEALTH QUESTIONS & ANSWERS 100% ACCURATE!!

Which of these is true regarding the exchange of consideration among parties involved in an insurance contract? - ANSWERCan be unequal The premiums paid by an employer for his employee's group life insurance are usually considered to be? - ANSWERTax-deductible to the employer Kevin has an existing life insurance policy and assigns it to another insurer for a new contract. How would this transaction be treated for tax purposes? - ANSWERAs a section 1035 exchange Which of these is NOT a common life insurance nonforfeiture option? - ANSWERLife income annuity 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 home health care EXCEPT? - ANSWERCustodial Care An accident and health insurer has just received written proof of loss from one of its insurers. The insured must now wait 60 days before? - ANSWERBringing legal action against the insurer Health care costs can be better controlled by utilizing pre-admission testing. Pre-admission testing can reduce the? - ANSWERLength of hospitalization The "Use ir or Lose it" rule applies to - ANSWERFlexible Savings Account fee-for-service is a method of administering health insurance benefit payments in which - ANSWERThe cost of each service is scheduled Use of XYZ Insurance Company brochures, business cards, and rating guides is an example of? - ANSWERApparent Authority A life insurance illustration showing future premiums being paid out of no guaranteed values must disclose that? - ANSWERThe policy owner may need to resume premium payments depending on actual results When the court orders an insured to provide a child's health insurance, the insurer must allow the child to be enrolled? - ANSWERAt any time Which of these statements is NOT a characteristic of the law of large numbers? - AN