,Arizona Life And Health Final Exam 2025 | 170
Questions With Accurate Solutions
1. The pay-in period, where the contract owner makes the purchase
payments. The _________ period of an annuity normally may continue after
the purchase payments cease.
Annuity period
Accumulation Period
2. In a modified endowment contract, the penalty tax imposed on
withdrawals is
30%
20%
40%
10%
3. What is the term used for the fee applied when a deferred annuity is
cancelled in the early years of the contract?
Premium tax
Contingent beneficiary
Mortality charge
Surrender charge
4. All of the following are true regarding Universal life insurance policies,
EXCEPT:
They are also known as "interest sensitive" whole life
,They have no minimum guaranteed rate of return
They have a flexible premium
, Partial surrenders are permitted without paying tax on the
earnings
5. If a contract is signed by a minor and later contested, what would be the
likely outcome regarding its validity?
The contract would be valid if the minor benefits from it.
The contract would be enforced if both parties agree.
The contract would be valid unless the minor was coerced.
The contract would likely be deemed void.
6. An insured has primary coverage with two companies. Company ABC has
policy limits of 35k and company XYZ limits are 40k. If a 60k policy loss
occurred, how much would company ABC pay?
25k
30k
40k
35k
7. Health savings accounts distributions made prior to age 65 that are not
used to pay qualified medical expenses are subject to an additional
30 percent tax
20 percent tax
15 percent tax
10 percent tax
8. What is the term for an unincorporated association where members
provide coverage for each other?
Reciprocal
Syndicate
Questions With Accurate Solutions
1. The pay-in period, where the contract owner makes the purchase
payments. The _________ period of an annuity normally may continue after
the purchase payments cease.
Annuity period
Accumulation Period
2. In a modified endowment contract, the penalty tax imposed on
withdrawals is
30%
20%
40%
10%
3. What is the term used for the fee applied when a deferred annuity is
cancelled in the early years of the contract?
Premium tax
Contingent beneficiary
Mortality charge
Surrender charge
4. All of the following are true regarding Universal life insurance policies,
EXCEPT:
They are also known as "interest sensitive" whole life
,They have no minimum guaranteed rate of return
They have a flexible premium
, Partial surrenders are permitted without paying tax on the
earnings
5. If a contract is signed by a minor and later contested, what would be the
likely outcome regarding its validity?
The contract would be valid if the minor benefits from it.
The contract would be enforced if both parties agree.
The contract would be valid unless the minor was coerced.
The contract would likely be deemed void.
6. An insured has primary coverage with two companies. Company ABC has
policy limits of 35k and company XYZ limits are 40k. If a 60k policy loss
occurred, how much would company ABC pay?
25k
30k
40k
35k
7. Health savings accounts distributions made prior to age 65 that are not
used to pay qualified medical expenses are subject to an additional
30 percent tax
20 percent tax
15 percent tax
10 percent tax
8. What is the term for an unincorporated association where members
provide coverage for each other?
Reciprocal
Syndicate
