ARIZONA LIFE AND HEALTH INSURANCE LICENSING EXAM 2
VERSIONS 2023/2025 BANK ACTUAL 500 QUESTIONS WITH DETAILED
ANSWERS WITH STUDY GUIDE EXPERT VERIFIED FOR GUARANTEED
PASS/ALREADY GRADED A+
A policy that is written for a person who is not yet considered an adult
Payday death benefit upon the death of the insured The idea of the
business of _______ was developed as a means for spreading the result of
a financial loss among many persons, so the cost to any one person is
small .. ANSWER...Return of Premium Insurance
protects the insured against the financial consequences of the direct or
consequential loss or damage to property of every kind. ..
ANSWER...Property insurance
protects the insured against the financial consequences of legal liability,
including that for death, injury, or disability, or damage to real or personal
property. .. ANSWER...Casualty Insurance
Insurance coverage on human lives including benefits of endowment and
annuities, and may include benefits in the event of death or
dismemberment by accident and benefits for disability insurance. ..
ANSWER...Life insurance
Is a guaranteed income for the life of an annuitant. .. ANSWER...Annuity
Protects the insured against financial loss caused by sickness, bodily injury
or accidental death and may include benefits for disability income. ..
ANSWER...Accident and Health
Products include insurance coverage provided under variable life insurance
contracts and variable annuities. .. ANSWER...Variable Life and variable
annuity
1|Page
,Is a limited line of insurance protecting the insured, who is usually a
creditor, against the financial consequences should a debtor be unable to
pay his or her debts due to illness or death. .. ANSWER...Credit insurance
The possibility that a loss might occur and is one of the reasons that people
purchase insurance. .. ANSWER...Risk
Type of risk that offers the opportunity for gain as well as the possibility of
loss. .. ANSWER...Speculative Risk
Type of risk that has possibility of loss only and is the type of risk that
insurers accept .. ANSWER...Pure risk
______ is the cause of a potential loss. .. ANSWER...Peril
____ is a condition that increases the seriousness of a potential loss or
increases the likelihood that a loss will occur. .. ANSWER...Hazard
Arise from material, structural or operational features of a risk situation.
Slippery floors or unsanitary conditions would be physical hazards ..
ANSWER...Physical hazards
Arise from people's habits and values, a moral hazard means that a person
might create a loss situation on purpose just to collect from the insurance
company. Filing a false claim is an example of moral hazard. ..
ANSWER...Moral hazards
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,Arise out of human carelessness or irresponsibility. .. ANSWER...Morale
hazards
Arise from court actions that increase the likelihood or size of a loss. ..
ANSWER...Legal hazards
the item of property or the person insured. The exposure unit in life and
health insurance is the economic value of the individual person's life. ..
ANSWER...Exposure unit
A Commercial Insurers stock insurance company, like other stock
companies, consists of stockholders who own shares in the company. ..
ANSWER...Stock insurer
Stock companies is referred to as a___________ company because
policyholders do not participate in dividends. .. ANSWER...Nonparticipating
There are no stockholders in a ______________ .. ANSWER...Mutual
Insurance Company
Mutual companies are policy owners who _________ in dividends ..
ANSWER...Participate
Reciprocal insurer
Fraternal insurer
Lloyd's associations
Assessment insurers
Reinsurers
3|Page
, Self-insurers
Sufficient Liquid .. ANSWER...Types of Private Insurers
Insurers are unincorporated groups of people providing insurance for one
another through individual indemnity agreements. .. ANSWER...Reciprocal
insurer
benefits societies are primarily life insurance carriers that exist as social
organization and usually engage in charitable and benevolent activities. ..
ANSWER...Fraternal insurer
Provides facilities for its members but does not buy or sell securities itself.
.. ANSWER...Lloyd's associations
Retains the right to charge policyholders additional premiums if those paid
in are insufficient to meet claims. .. ANSWER...Assessment insurers
Is a form of insurance between insurers. It occurs when an insurer agrees
to accept all or a portion of a risk covered by another insurer (the ceding
company). .. ANSWER...Reinsurers
Is a means of retaining risk. .. ANSWER...Self-insurers
If an insurer is conducting business in the state where it is incorporated,
that insurers is a domestic insurer in that state. .. ANSWER...Domestic
insurer
If an insurer conducts business in a state where it is not incorporated, the
insurer is a foreign insurer in that state. .. ANSWER...Foreign insurer
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VERSIONS 2023/2025 BANK ACTUAL 500 QUESTIONS WITH DETAILED
ANSWERS WITH STUDY GUIDE EXPERT VERIFIED FOR GUARANTEED
PASS/ALREADY GRADED A+
A policy that is written for a person who is not yet considered an adult
Payday death benefit upon the death of the insured The idea of the
business of _______ was developed as a means for spreading the result of
a financial loss among many persons, so the cost to any one person is
small .. ANSWER...Return of Premium Insurance
protects the insured against the financial consequences of the direct or
consequential loss or damage to property of every kind. ..
ANSWER...Property insurance
protects the insured against the financial consequences of legal liability,
including that for death, injury, or disability, or damage to real or personal
property. .. ANSWER...Casualty Insurance
Insurance coverage on human lives including benefits of endowment and
annuities, and may include benefits in the event of death or
dismemberment by accident and benefits for disability insurance. ..
ANSWER...Life insurance
Is a guaranteed income for the life of an annuitant. .. ANSWER...Annuity
Protects the insured against financial loss caused by sickness, bodily injury
or accidental death and may include benefits for disability income. ..
ANSWER...Accident and Health
Products include insurance coverage provided under variable life insurance
contracts and variable annuities. .. ANSWER...Variable Life and variable
annuity
1|Page
,Is a limited line of insurance protecting the insured, who is usually a
creditor, against the financial consequences should a debtor be unable to
pay his or her debts due to illness or death. .. ANSWER...Credit insurance
The possibility that a loss might occur and is one of the reasons that people
purchase insurance. .. ANSWER...Risk
Type of risk that offers the opportunity for gain as well as the possibility of
loss. .. ANSWER...Speculative Risk
Type of risk that has possibility of loss only and is the type of risk that
insurers accept .. ANSWER...Pure risk
______ is the cause of a potential loss. .. ANSWER...Peril
____ is a condition that increases the seriousness of a potential loss or
increases the likelihood that a loss will occur. .. ANSWER...Hazard
Arise from material, structural or operational features of a risk situation.
Slippery floors or unsanitary conditions would be physical hazards ..
ANSWER...Physical hazards
Arise from people's habits and values, a moral hazard means that a person
might create a loss situation on purpose just to collect from the insurance
company. Filing a false claim is an example of moral hazard. ..
ANSWER...Moral hazards
2|Page
,Arise out of human carelessness or irresponsibility. .. ANSWER...Morale
hazards
Arise from court actions that increase the likelihood or size of a loss. ..
ANSWER...Legal hazards
the item of property or the person insured. The exposure unit in life and
health insurance is the economic value of the individual person's life. ..
ANSWER...Exposure unit
A Commercial Insurers stock insurance company, like other stock
companies, consists of stockholders who own shares in the company. ..
ANSWER...Stock insurer
Stock companies is referred to as a___________ company because
policyholders do not participate in dividends. .. ANSWER...Nonparticipating
There are no stockholders in a ______________ .. ANSWER...Mutual
Insurance Company
Mutual companies are policy owners who _________ in dividends ..
ANSWER...Participate
Reciprocal insurer
Fraternal insurer
Lloyd's associations
Assessment insurers
Reinsurers
3|Page
, Self-insurers
Sufficient Liquid .. ANSWER...Types of Private Insurers
Insurers are unincorporated groups of people providing insurance for one
another through individual indemnity agreements. .. ANSWER...Reciprocal
insurer
benefits societies are primarily life insurance carriers that exist as social
organization and usually engage in charitable and benevolent activities. ..
ANSWER...Fraternal insurer
Provides facilities for its members but does not buy or sell securities itself.
.. ANSWER...Lloyd's associations
Retains the right to charge policyholders additional premiums if those paid
in are insufficient to meet claims. .. ANSWER...Assessment insurers
Is a form of insurance between insurers. It occurs when an insurer agrees
to accept all or a portion of a risk covered by another insurer (the ceding
company). .. ANSWER...Reinsurers
Is a means of retaining risk. .. ANSWER...Self-insurers
If an insurer is conducting business in the state where it is incorporated,
that insurers is a domestic insurer in that state. .. ANSWER...Domestic
insurer
If an insurer conducts business in a state where it is not incorporated, the
insurer is a foreign insurer in that state. .. ANSWER...Foreign insurer
4|Page
