FINAL EXAM - ARIZONA LIFE AND HEALTH
Which of these is true regarding the exchange of consideration among parties
involved in an insurance contract? - correct answer Can be unequal
The premiums paid by an employer for his employee's group life insurance are
usually considered to be? - correct answer 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? - correct
answer As a section 1035 exchange
Which of these is NOT a common life insurance nonforfeiture option? - correct
answer 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? - correct answer 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? - correct answer Bringing
legal action against the insurer
Health care costs can be better controlled by utilizing pre-admission testing. Pre-
admission testing can reduce the? - correct answer Length of hospitalization
The "Use ir or Lose it" rule applies to - correct answer Flexible Savings Account
fee-for-service is a method of administering health insurance benefit payments in
which - correct answer The cost of each service is scheduled
Use of XYZ Insurance Company brochures, business cards, and rating guides is an
example of? - correct answer Apparent Authority
A life insurance illustration showing future premiums being paid out of no
guaranteed values must disclose that? - correct answer 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? - correct answer At any time
Which of these statements is NOT a characteristic of the law of large numbers? -
correct answer Rates can be calculated to compensate for losses
,FINAL EXAM - ARIZONA LIFE AND HEALTH
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? - correct
answer Application
How does the cost for a survivorship life policy compare to the cost of combining
two separate individual life insurance policies? - correct answer Survivorship life
policy is lower
How does a continuous premium whole life policy differ from a limited payment
whole life policy? - correct answer The time period in which premiums will be
paid
An agent's authority to bind an insurer to an insurance contract may be granted in
the? - correct answer Agent's contract and the insurance company's appointment
Which statement concerning the Entire Contact provision in an individual accident
and health insurance policy is TRUE? - correct answer The agent doesn't have the
authority to change the policy or waive its provisions
Under the Fair Credit Reporting Act, which statement is true? - correct answer
The consumer who was investigated must be advised that credit, insurance, or
employment was denied because of an unfavorable report.
Field underwriting by a producer? - correct answer May result in the disclosure of
hazardous activity of the applicant.
When group benefits under COBRA have expired, a fully insured group policy can
be converted to a(n) - correct answer Individual health policy
In a qualified retirement plan, the yearly contributions to an employee's account?
- correct answer Are restricted to maximum limits set by the IRS
The unwritten authority given to a producer to carry out necessary incidental acts
of the agency agreement is called? - correct answer Implied authority
Which provision makes the application part of the annuity contract? - correct
answer Entire Contract clause
, FINAL EXAM - ARIZONA LIFE AND HEALTH
Arizona Law require the Human Immunodeficiency Virus (HIV) consent form to? -
correct answer Disclose the types of individuals or organizations that may receive
a copy of the test results
Under which marketing system do insurers solicit customers by mass media
advertising and mail without their services of an agent? - correct answer Direct
Response
A policy owner has just borrowed from a life insurance policy's cash value. Which
of these statements is true? - correct answer In the event of death, the loan
amount is deducted from the policy proceeds
According to federal fraud and false statement regulation, what is required for a
prohibited person to transact insurance business in this state? - correct answer
Written consent from the state insurance regulatory agency
Employer-paid qualifies long-term care insurance premiums are typically? -
correct answer Excluded from the employee's gross income
When replacing a life insurance policy, which of the following is advisable? -
correct answer Wait until the new policy Is issued and deliver before surrendering
existing policy
Which of these may NOT be deducted from premium payments or the cash value
of a variable life insurance policy? - correct answer Federal premium taxes
A policy owner pays the first annual premium for a $50,000 Life Insurance policy
and dies one month after the policy effective fate. Which of these statements is
normally true? - correct answer Beneficiary receives $50,000 income tax-free
A life policy that has premiums that are lower than normal during the early years
is called? - correct answer Modified Life
Which life insurance settlement option pays a stated monthly benefit until both
principal and interest are exhausted? - correct answer Fixed amount installment
option
What type of doctor-ordered care assists an individual with performing basic daily
activists such as bathing, dressing, eating? - correct answer Custodial Care
Which of these is true regarding the exchange of consideration among parties
involved in an insurance contract? - correct answer Can be unequal
The premiums paid by an employer for his employee's group life insurance are
usually considered to be? - correct answer 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? - correct
answer As a section 1035 exchange
Which of these is NOT a common life insurance nonforfeiture option? - correct
answer 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? - correct answer 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? - correct answer Bringing
legal action against the insurer
Health care costs can be better controlled by utilizing pre-admission testing. Pre-
admission testing can reduce the? - correct answer Length of hospitalization
The "Use ir or Lose it" rule applies to - correct answer Flexible Savings Account
fee-for-service is a method of administering health insurance benefit payments in
which - correct answer The cost of each service is scheduled
Use of XYZ Insurance Company brochures, business cards, and rating guides is an
example of? - correct answer Apparent Authority
A life insurance illustration showing future premiums being paid out of no
guaranteed values must disclose that? - correct answer 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? - correct answer At any time
Which of these statements is NOT a characteristic of the law of large numbers? -
correct answer Rates can be calculated to compensate for losses
,FINAL EXAM - ARIZONA LIFE AND HEALTH
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? - correct
answer Application
How does the cost for a survivorship life policy compare to the cost of combining
two separate individual life insurance policies? - correct answer Survivorship life
policy is lower
How does a continuous premium whole life policy differ from a limited payment
whole life policy? - correct answer The time period in which premiums will be
paid
An agent's authority to bind an insurer to an insurance contract may be granted in
the? - correct answer Agent's contract and the insurance company's appointment
Which statement concerning the Entire Contact provision in an individual accident
and health insurance policy is TRUE? - correct answer The agent doesn't have the
authority to change the policy or waive its provisions
Under the Fair Credit Reporting Act, which statement is true? - correct answer
The consumer who was investigated must be advised that credit, insurance, or
employment was denied because of an unfavorable report.
Field underwriting by a producer? - correct answer May result in the disclosure of
hazardous activity of the applicant.
When group benefits under COBRA have expired, a fully insured group policy can
be converted to a(n) - correct answer Individual health policy
In a qualified retirement plan, the yearly contributions to an employee's account?
- correct answer Are restricted to maximum limits set by the IRS
The unwritten authority given to a producer to carry out necessary incidental acts
of the agency agreement is called? - correct answer Implied authority
Which provision makes the application part of the annuity contract? - correct
answer Entire Contract clause
, FINAL EXAM - ARIZONA LIFE AND HEALTH
Arizona Law require the Human Immunodeficiency Virus (HIV) consent form to? -
correct answer Disclose the types of individuals or organizations that may receive
a copy of the test results
Under which marketing system do insurers solicit customers by mass media
advertising and mail without their services of an agent? - correct answer Direct
Response
A policy owner has just borrowed from a life insurance policy's cash value. Which
of these statements is true? - correct answer In the event of death, the loan
amount is deducted from the policy proceeds
According to federal fraud and false statement regulation, what is required for a
prohibited person to transact insurance business in this state? - correct answer
Written consent from the state insurance regulatory agency
Employer-paid qualifies long-term care insurance premiums are typically? -
correct answer Excluded from the employee's gross income
When replacing a life insurance policy, which of the following is advisable? -
correct answer Wait until the new policy Is issued and deliver before surrendering
existing policy
Which of these may NOT be deducted from premium payments or the cash value
of a variable life insurance policy? - correct answer Federal premium taxes
A policy owner pays the first annual premium for a $50,000 Life Insurance policy
and dies one month after the policy effective fate. Which of these statements is
normally true? - correct answer Beneficiary receives $50,000 income tax-free
A life policy that has premiums that are lower than normal during the early years
is called? - correct answer Modified Life
Which life insurance settlement option pays a stated monthly benefit until both
principal and interest are exhausted? - correct answer Fixed amount installment
option
What type of doctor-ordered care assists an individual with performing basic daily
activists such as bathing, dressing, eating? - correct answer Custodial Care
