Arizona Health/Life Insurance Exam
Latest Update 2025/2026 GRADED A+
Hazard is best defined as - correct answerSomething that increases the risk of loss
How long is the grace period on a group life insurance policy? - correct answer31 Days
Which of the following is TRUE about the 10-day free-look period in a Life Insurance
Policy? - correct answerIt begins when the policy is delivered
An absolute assignment is a - correct answerTransfer of all ownership rights in a policy
What kind of policy allows withdrawals or partial surrenders? - correct answerUniversal
Life
A producer is helping a married couple determine the financial needs of their children in
the event one or both should die prematurely. This is a personal use of life insurance
known as - correct answerSurvivor Protection
Which policy component decreases in decreasing term insurance? - correct
answerFace Amount
The Federal Fair Credit Reporting Act - correct answerRegulates consumer reports
The main difference between immediate and deferred annuities is - correct
answerWhen the income payments begin
State law specifically prohibits using illegal inducements in the marketing of insurance.
All of the following would be considered illegal inducements except? - correct
answerIssuing a delivering insurance company stock in return for purchasing insurance
Offering benefit certificates or securities in return for purchasing insurance
Promising returns and profits from the purchase of insurance
Which of the following statements is correct about a standard risk classification in the
same age group and with similar lifestyles? - correct answerStandard Risk is
representative of the majority of people
Which of the following information about the applicant is NOT included in the general
information section of the application for insurance? - correct answerMedical
Background
,An insurer devises on intimidation strategy in order to corner a large portion of the
insurance market. Which of the following best describes this practice? - correct
answerIllegal
Upon the death of the insured, the primary beneficiary discovers that the insured chose
the interest only settlement option. What does this mean? - correct answerThe
beneficiary will only receive payments of the interest earned on the death benefit
The 30 day payment of claims requirement applies to which of the following persons? -
correct answerA state worker filing a personal injury claim
When a policyowner designates a group of individuals as the beneficiary of a life
insurance death benefit without specifically naming the individuals, this is called? -
correct answerClass designation
If an applicant for a life insurance policy and person to be insured by the policy are two
different different people, the underwriter would be concerned about? - correct
answerWhether an insurance interest exists between the individuals
All of the following are nonforfeiture options except? - correct answerCash surrender
Reduced Paid-Up
Extended Term
A domestic insurer issuing variable contracts must establish one or more - correct
answerSeparate Accounts
An employee is insured under her employers group life plan. If she terminates her group
coverage, which of the following statements is INCORRECT? - correct answerThe
insured may choose to convert to term or permanent individual coverage
What do individuals use to transfer their risk of loss to a larger group? - correct
answerInsurance
When an applicant purchased a life insurance policy, the agent dated the application 4
months prior. When asked by the applicant, the agent said he was allowed to backdate
policies up to 6 months if it would - correct answerLower the insured's premium
In insurance, an offer is usually made when - correct answerAn applicant submits an
application to the insurer
An insurance contract must contain all of the following to be considered legally binding
EXCEPT - correct answerBeneficiary's consent
(offer and acceptance, consideration, competent parties, and legal purpose)
, An underwriter may obtain information on an applicants hobbies, financial status, and
habits by ordering a(n)? - correct answerInspection Report
The purpose of the 'No loss No Gain' provision is to avoid duplication of _____ and
_____ when an individual is covered under multiple group health insurance plans: -
correct answerBenfit payments and overinsurance
A life insurance policy can usually be contested by the insurer only during the first ____
years of the contract - correct answer2 years
After an annuity has been in force for ____ years, it becomes incontestable - correct
answer2 years
In long term care insurance, what is the length of time for which claims will be paid -
correct answerBenefit period
After an insurance application has been originated, the producer normally - correct
answerIs the major personal contact to the insured
What happens to a life insurance policy when the policy loan balance exceeds the cash
value - correct answerPolicy will no longer be in force
The ACA must ensure a sufficient choice of ______ in the marketplace - correct
answerProviders
Which of the following statements BEST describes employer contributions for employer
provided health insurance - correct answerEmployer contributions are deductible
An annuity's accumulation period may - correct answerContinue after the purchase
payments stop
Which of these is NOT an underwriting responsibility of a life insurance agent - correct
answerDetermining the final rate classification
What happens to the death benefit of a life insurance policy if the insured elects a partial
payment from the accelerated (living) benefit provision - correct answerReduced
Latest Update 2025/2026 GRADED A+
Hazard is best defined as - correct answerSomething that increases the risk of loss
How long is the grace period on a group life insurance policy? - correct answer31 Days
Which of the following is TRUE about the 10-day free-look period in a Life Insurance
Policy? - correct answerIt begins when the policy is delivered
An absolute assignment is a - correct answerTransfer of all ownership rights in a policy
What kind of policy allows withdrawals or partial surrenders? - correct answerUniversal
Life
A producer is helping a married couple determine the financial needs of their children in
the event one or both should die prematurely. This is a personal use of life insurance
known as - correct answerSurvivor Protection
Which policy component decreases in decreasing term insurance? - correct
answerFace Amount
The Federal Fair Credit Reporting Act - correct answerRegulates consumer reports
The main difference between immediate and deferred annuities is - correct
answerWhen the income payments begin
State law specifically prohibits using illegal inducements in the marketing of insurance.
All of the following would be considered illegal inducements except? - correct
answerIssuing a delivering insurance company stock in return for purchasing insurance
Offering benefit certificates or securities in return for purchasing insurance
Promising returns and profits from the purchase of insurance
Which of the following statements is correct about a standard risk classification in the
same age group and with similar lifestyles? - correct answerStandard Risk is
representative of the majority of people
Which of the following information about the applicant is NOT included in the general
information section of the application for insurance? - correct answerMedical
Background
,An insurer devises on intimidation strategy in order to corner a large portion of the
insurance market. Which of the following best describes this practice? - correct
answerIllegal
Upon the death of the insured, the primary beneficiary discovers that the insured chose
the interest only settlement option. What does this mean? - correct answerThe
beneficiary will only receive payments of the interest earned on the death benefit
The 30 day payment of claims requirement applies to which of the following persons? -
correct answerA state worker filing a personal injury claim
When a policyowner designates a group of individuals as the beneficiary of a life
insurance death benefit without specifically naming the individuals, this is called? -
correct answerClass designation
If an applicant for a life insurance policy and person to be insured by the policy are two
different different people, the underwriter would be concerned about? - correct
answerWhether an insurance interest exists between the individuals
All of the following are nonforfeiture options except? - correct answerCash surrender
Reduced Paid-Up
Extended Term
A domestic insurer issuing variable contracts must establish one or more - correct
answerSeparate Accounts
An employee is insured under her employers group life plan. If she terminates her group
coverage, which of the following statements is INCORRECT? - correct answerThe
insured may choose to convert to term or permanent individual coverage
What do individuals use to transfer their risk of loss to a larger group? - correct
answerInsurance
When an applicant purchased a life insurance policy, the agent dated the application 4
months prior. When asked by the applicant, the agent said he was allowed to backdate
policies up to 6 months if it would - correct answerLower the insured's premium
In insurance, an offer is usually made when - correct answerAn applicant submits an
application to the insurer
An insurance contract must contain all of the following to be considered legally binding
EXCEPT - correct answerBeneficiary's consent
(offer and acceptance, consideration, competent parties, and legal purpose)
, An underwriter may obtain information on an applicants hobbies, financial status, and
habits by ordering a(n)? - correct answerInspection Report
The purpose of the 'No loss No Gain' provision is to avoid duplication of _____ and
_____ when an individual is covered under multiple group health insurance plans: -
correct answerBenfit payments and overinsurance
A life insurance policy can usually be contested by the insurer only during the first ____
years of the contract - correct answer2 years
After an annuity has been in force for ____ years, it becomes incontestable - correct
answer2 years
In long term care insurance, what is the length of time for which claims will be paid -
correct answerBenefit period
After an insurance application has been originated, the producer normally - correct
answerIs the major personal contact to the insured
What happens to a life insurance policy when the policy loan balance exceeds the cash
value - correct answerPolicy will no longer be in force
The ACA must ensure a sufficient choice of ______ in the marketplace - correct
answerProviders
Which of the following statements BEST describes employer contributions for employer
provided health insurance - correct answerEmployer contributions are deductible
An annuity's accumulation period may - correct answerContinue after the purchase
payments stop
Which of these is NOT an underwriting responsibility of a life insurance agent - correct
answerDetermining the final rate classification
What happens to the death benefit of a life insurance policy if the insured elects a partial
payment from the accelerated (living) benefit provision - correct answerReduced
