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