NEW ARIZONA LIFE AND HEALTH
INSURANCE EXAM QUESTIONS AND
ANSWERS TESTED AND APPROVED 2025/2026
LATEST
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.
Page 1 of 42
,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
When an applicant applies for a large amount of life insurance
coverage, which of the following would likely NOT be an
underwriting requirement? --ANSWER--eye examination
A comprehensive major medical health insurance policy contains an
eligible expenses provision which identifies the type of health care
services that are covered. All of the following health care services are
typical covered EXCEPT for --ANSWER--Experimental and
investigative services
All of these statements concerning group credit life insurance are
false EXCEPT --ANSWER--The face amount is determined by the
outstanding loan balance
Who may terminate coverage under and cancelable health insurance
policy? --ANSWER--insurer or insured
Page 2 of 42
,The interest credited to the cash values of personally-owned non-
qualified annuities is considered --ANSWER--tax deferred
An insurer that confines or largely limits the exposures it writes to
those of its owners is called --ANSWER--captive
Dividends from a mutual insurance company are paid to whom? --
ANSWER--Policyholders
A business may purchase an annuity for all of the following reasons
EXCEPT --ANSWER--Informally finding a non-qualified deferred
compensation plan
An organization that requires healthcare services to be provided by a
network of physicians and hospitals is known as an --ANSWER--
HMO
In Arizona, and insurer providing small employer group medical
plans may discontinue an employers coverage if --ANSWER--The
insurer no longer offers the plan to any employer
Page 3 of 42
, Which of the following statements is NOT true concerning the
relationship between group health insurance plans and Medicare?
(Assuming the business has more than 20 employees) --ANSWER--
Group health coverage is NOT available for workers over the age of
65
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
Page 4 of 42
INSURANCE EXAM QUESTIONS AND
ANSWERS TESTED AND APPROVED 2025/2026
LATEST
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.
Page 1 of 42
,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
When an applicant applies for a large amount of life insurance
coverage, which of the following would likely NOT be an
underwriting requirement? --ANSWER--eye examination
A comprehensive major medical health insurance policy contains an
eligible expenses provision which identifies the type of health care
services that are covered. All of the following health care services are
typical covered EXCEPT for --ANSWER--Experimental and
investigative services
All of these statements concerning group credit life insurance are
false EXCEPT --ANSWER--The face amount is determined by the
outstanding loan balance
Who may terminate coverage under and cancelable health insurance
policy? --ANSWER--insurer or insured
Page 2 of 42
,The interest credited to the cash values of personally-owned non-
qualified annuities is considered --ANSWER--tax deferred
An insurer that confines or largely limits the exposures it writes to
those of its owners is called --ANSWER--captive
Dividends from a mutual insurance company are paid to whom? --
ANSWER--Policyholders
A business may purchase an annuity for all of the following reasons
EXCEPT --ANSWER--Informally finding a non-qualified deferred
compensation plan
An organization that requires healthcare services to be provided by a
network of physicians and hospitals is known as an --ANSWER--
HMO
In Arizona, and insurer providing small employer group medical
plans may discontinue an employers coverage if --ANSWER--The
insurer no longer offers the plan to any employer
Page 3 of 42
, Which of the following statements is NOT true concerning the
relationship between group health insurance plans and Medicare?
(Assuming the business has more than 20 employees) --ANSWER--
Group health coverage is NOT available for workers over the age of
65
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
Page 4 of 42
