Arizona Life and Health Insurance Exam Study Guide
2026/2027 - Comprehensive Practice Questions & Expert
Verified Answers
When the disclosure of an insured's nonpublic information is involved, what is the
insurer obligated to do? - ANSWER✔✔ Give notice, explain, and allow opting out
Under the Telemarketing Sales Rule, telemarketing calls may NOT be received after -
ANSWER✔✔ 9:00 PM
A health plan offered by private insurance companies is - ANSWER✔✔Medicare
Supplement
Chris has a single major medical contract which covers all medical expenses. His plan is
considered to be - 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 - 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 - ANSWER✔✔Ten year term insurance for a
person aged 55
A disabled business owner who has payroll and business expenses paid for has what
kind of insurance policy? - ANSWER✔✔Business Overhead Expense
,When family coverage is in place, newborn children are automatically covered under a
medical plan for a period of at least - ANSWER✔✔31 days
Cause of Loss - ANSWER✔✔peril
An appointed producer's implied authority is derived from - ANSWER✔✔express
authority
Karen is considering replacing her individual accident and health insurance policy with
another individual policy. She has had issues in the past with her gall bladder that
would be considered a pre-existing condition. How will a pre-existing conditions
exclusion affect Karen's new insurance contract? - ANSWER✔✔May reduce her
benefits
Arizona law requires the Human Immunodeficiency Virus (HIV) consent form to -
ANSWER✔✔Disclose the types of individuals or organizations that may receive a copy
of the test results
What happens when a policyowner borrows against the cash value of his life insurance
policy - ANSWER✔✔
Which of the following types of insurers limits the exposures it writes to those of its
owners? - ANSWER✔✔Captive insurer
Who regulates an insurers claim settlement practices - ANSWER✔✔State insurance
departments
,Which reinsurance contract between two insurers involves an automatic sharing of the
risks assumed? - ANSWER✔✔Treaty reinsurance
Which of the following is a syndicate established by a group of insurers to share
underwriting duties? - ANSWER✔✔Lloyd's organization
All of the following are unfair claims settlement practices except - ANSWER✔✔An
attempt to settle a claim by arbitration
What is covered under a limited accident and health insurance policy? -
ANSWER✔✔Limited perils and amounts
A life insurance policy provision that has the ability to reduce the death benefit is called
- 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 - ANSWER✔✔Written proof of the occurrence and extent of loss
How are monthly life annuity benefit payments treated under a tax sheltered annuity
(TSA)? - 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? - 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? - 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? - ANSWER✔✔When not prohibited by state law
A material change in a modified endowment contract (MEC) results in -
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? - 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 -
ANSWER✔✔custodial care
Employer-paid qualified long-term care insurance premiums are typically -
ANSWER✔✔Excluded from the employee's gross income.
Which statement regarding the certificate of insurance is accurate? -
ANSWER✔✔Indicates evidence of an employee's insurance coverage
Purchasing insurance is an example of risk - ANSWER✔✔transference
2026/2027 - Comprehensive Practice Questions & Expert
Verified Answers
When the disclosure of an insured's nonpublic information is involved, what is the
insurer obligated to do? - ANSWER✔✔ Give notice, explain, and allow opting out
Under the Telemarketing Sales Rule, telemarketing calls may NOT be received after -
ANSWER✔✔ 9:00 PM
A health plan offered by private insurance companies is - ANSWER✔✔Medicare
Supplement
Chris has a single major medical contract which covers all medical expenses. His plan is
considered to be - 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 - 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 - ANSWER✔✔Ten year term insurance for a
person aged 55
A disabled business owner who has payroll and business expenses paid for has what
kind of insurance policy? - ANSWER✔✔Business Overhead Expense
,When family coverage is in place, newborn children are automatically covered under a
medical plan for a period of at least - ANSWER✔✔31 days
Cause of Loss - ANSWER✔✔peril
An appointed producer's implied authority is derived from - ANSWER✔✔express
authority
Karen is considering replacing her individual accident and health insurance policy with
another individual policy. She has had issues in the past with her gall bladder that
would be considered a pre-existing condition. How will a pre-existing conditions
exclusion affect Karen's new insurance contract? - ANSWER✔✔May reduce her
benefits
Arizona law requires the Human Immunodeficiency Virus (HIV) consent form to -
ANSWER✔✔Disclose the types of individuals or organizations that may receive a copy
of the test results
What happens when a policyowner borrows against the cash value of his life insurance
policy - ANSWER✔✔
Which of the following types of insurers limits the exposures it writes to those of its
owners? - ANSWER✔✔Captive insurer
Who regulates an insurers claim settlement practices - ANSWER✔✔State insurance
departments
,Which reinsurance contract between two insurers involves an automatic sharing of the
risks assumed? - ANSWER✔✔Treaty reinsurance
Which of the following is a syndicate established by a group of insurers to share
underwriting duties? - ANSWER✔✔Lloyd's organization
All of the following are unfair claims settlement practices except - ANSWER✔✔An
attempt to settle a claim by arbitration
What is covered under a limited accident and health insurance policy? -
ANSWER✔✔Limited perils and amounts
A life insurance policy provision that has the ability to reduce the death benefit is called
- 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 - ANSWER✔✔Written proof of the occurrence and extent of loss
How are monthly life annuity benefit payments treated under a tax sheltered annuity
(TSA)? - 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? - 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? - 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? - ANSWER✔✔When not prohibited by state law
A material change in a modified endowment contract (MEC) results in -
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? - 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 -
ANSWER✔✔custodial care
Employer-paid qualified long-term care insurance premiums are typically -
ANSWER✔✔Excluded from the employee's gross income.
Which statement regarding the certificate of insurance is accurate? -
ANSWER✔✔Indicates evidence of an employee's insurance coverage
Purchasing insurance is an example of risk - ANSWER✔✔transference
