ARIZONA LIFE AND HEALTH FINAL
EXAM QUESTIONS WITH COMPLETE
SOLUTIONS27
Which individual would be best suited for Medicare Supplement insurance? - ANSWERS -
Medicare enrollee
A group-owned insurance company that is formed to assume and spread the liability risks of its
members is known as a - ANSWERS -Risk retention group
Which of the following is true regarding a person receiving a waiver of premium benefit? -
ANSWERS -The insured must be disabled for a period of time
What are premiums for group credit life insurance based on? - ANSWERS -Flat rate unrelated to
the borrower's age
What do Limited accident and health policies normally cover? - ANSWERS -A specific illness or
event
Which of the following statement is true regarding accident and health insurance claims that
reimburse on an indemnity basis? - ANSWERS -Claims can be sent directly to the insured
When a Medicare Supplement insurance policy is being replaced, who must sign the notice of
replacement - ANSWERS -The producer and the applicant
A signed good health statement may be requested by a life producer at the time of - ANSWERS -
Policy delivery
,The maximum prison sentence given under federal law for unfair and deceptive insurance
practices is ? - ANSWERS -15 years
Which of the statements BEST describes a double indemnity provision in travel accident
insurance? - ANSWERS -Benefits are doubled under certain circumstances stated in the policy
Voluntarily terminating an insurance policy is also known as - ANSWERS -cancellation
Which of these is true regarding the exchange of consideration among parties involved in an
insurance contract? - ANSWERS -Can be unequal
The premiums paid by an employer for his employee's group life insurance are usually
considered to be? - ANSWERS -Tax-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? - ANSWERS -As a section 1035
exchange
Which of these is NOT a common life insurance nonforfeiture option? - ANSWERS -Life 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? - ANSWERS -
Custodial 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? - ANSWERS -Bringing legal action against the insurer
, Health care costs can be better controlled by utilizing pre-admission testing. Pre-admission
testing can reduce the? - ANSWERS -Length of hospitalization
The "Use ir or Lose it" rule applies to - ANSWERS -Flexible Savings Account
fee-for-service is a method of administering health insurance benefit payments in which -
ANSWERS -The cost of each service is scheduled
Use of XYZ Insurance Company brochures, business cards, and rating guides is an example of? -
ANSWERS -Apparent Authority
A life insurance illustration showing future premiums being paid out of no guaranteed values
must disclose that? - ANSWERS -The 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? - ANSWERS -At any time
Which of these statements is NOT a characteristic of the law of large numbers? - ANSWERS -
Rates can be calculated to compensate for losses
In Arizona, when personal information is collected from a source other then the accident and
health insurance applicant or public records, a notice or information practices must be given to
the applicant no later than the date of? - ANSWERS -Application
How does the cost for a survivorship life policy compare to the cost of combining two separate
individual life insurance policies? - ANSWERS -Survivorship life policy is lower
How does a continuous premium whole life policy differ from a limited payment whole life
policy? - ANSWERS -The time period in which premiums will be paid
EXAM QUESTIONS WITH COMPLETE
SOLUTIONS27
Which individual would be best suited for Medicare Supplement insurance? - ANSWERS -
Medicare enrollee
A group-owned insurance company that is formed to assume and spread the liability risks of its
members is known as a - ANSWERS -Risk retention group
Which of the following is true regarding a person receiving a waiver of premium benefit? -
ANSWERS -The insured must be disabled for a period of time
What are premiums for group credit life insurance based on? - ANSWERS -Flat rate unrelated to
the borrower's age
What do Limited accident and health policies normally cover? - ANSWERS -A specific illness or
event
Which of the following statement is true regarding accident and health insurance claims that
reimburse on an indemnity basis? - ANSWERS -Claims can be sent directly to the insured
When a Medicare Supplement insurance policy is being replaced, who must sign the notice of
replacement - ANSWERS -The producer and the applicant
A signed good health statement may be requested by a life producer at the time of - ANSWERS -
Policy delivery
,The maximum prison sentence given under federal law for unfair and deceptive insurance
practices is ? - ANSWERS -15 years
Which of the statements BEST describes a double indemnity provision in travel accident
insurance? - ANSWERS -Benefits are doubled under certain circumstances stated in the policy
Voluntarily terminating an insurance policy is also known as - ANSWERS -cancellation
Which of these is true regarding the exchange of consideration among parties involved in an
insurance contract? - ANSWERS -Can be unequal
The premiums paid by an employer for his employee's group life insurance are usually
considered to be? - ANSWERS -Tax-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? - ANSWERS -As a section 1035
exchange
Which of these is NOT a common life insurance nonforfeiture option? - ANSWERS -Life 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? - ANSWERS -
Custodial 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? - ANSWERS -Bringing legal action against the insurer
, Health care costs can be better controlled by utilizing pre-admission testing. Pre-admission
testing can reduce the? - ANSWERS -Length of hospitalization
The "Use ir or Lose it" rule applies to - ANSWERS -Flexible Savings Account
fee-for-service is a method of administering health insurance benefit payments in which -
ANSWERS -The cost of each service is scheduled
Use of XYZ Insurance Company brochures, business cards, and rating guides is an example of? -
ANSWERS -Apparent Authority
A life insurance illustration showing future premiums being paid out of no guaranteed values
must disclose that? - ANSWERS -The 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? - ANSWERS -At any time
Which of these statements is NOT a characteristic of the law of large numbers? - ANSWERS -
Rates can be calculated to compensate for losses
In Arizona, when personal information is collected from a source other then the accident and
health insurance applicant or public records, a notice or information practices must be given to
the applicant no later than the date of? - ANSWERS -Application
How does the cost for a survivorship life policy compare to the cost of combining two separate
individual life insurance policies? - ANSWERS -Survivorship life policy is lower
How does a continuous premium whole life policy differ from a limited payment whole life
policy? - ANSWERS -The time period in which premiums will be paid
