Arizona life and health insurance exam | Questions and answers with 100% correct solutions | Graded A+

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When the disclosure of an insured's nonpublic information is involved, what is the insurer obligated to do? ✔✔Give notice, explain, and allow opting out Under the Telemarketing Sales Rule, telem... arketing calls may NOT be received after ✔✔9:00 PM A health plan offered by private insurance companies is ✔✔Medicare Supplement Chris has a single major medical contract which covers all medical expenses. His plan is considered to be ✔✔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 ✔✔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 ✔✔Ten year term insurance for a person aged 55 All of the following are unfair claims settlement practices except ✔✔An attempt to settle a claim by arbitration What is covered under a limited accident and health insurance policy? ✔✔Limited perils and amountsA life insurance policy provision that has the ability to reduce the death benefit is called ✔✔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 ✔✔Written proof of the occurrence and extent of loss How are monthly life annuity benefit payments treated under a tax sheltered annuity (TSA)? ✔✔Taxed as ordinary income in the year received How does a continuous premium whole life policy differ from a limited payment whole life policy? ✔✔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? ✔✔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? ✔✔When not prohibited by state law A material change in a modified endowment contract (MEC) results in ✔✔the seven pay test, adjusted for cash value, being applied againUnder an adjustable life insurance policy, which of the following may NOT be changed without further underwriting? ✔✔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 ✔✔custodial care Employer-paid qualified long-term care insurance premiums are typically ✔✔Excluded from the employee's gross income. Which statement regarding the certificate of insurance is accurate? ✔✔Indicates evidence of an employee's insurance coverage Purchasing insurance is an example of risk ✔✔transference When an applicant applies for a large amount of life insurance coverage, which of the following would likely NOT be an underwriting requirement? ✔✔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 ✔✔Experimental and investigative services All of these statements concerning group credit life insurance are false EXCEPT ✔✔The face amount is determined by the outstanding loan balanceWho may terminate coverage under and cancelable health insurance policy? ✔✔insurer or insured The interest credited to the cash values of personally-owned non-qualified annuities is considered ✔✔tax deferred An insurer that confines or largely limits the exposures it writes to those of its owners is called ✔✔captive Dividends from a mutual insurance company are paid to whom? ✔✔Policyholders A business may purchase an annuity for all of the following reasons EXCEPT ✔✔Informally finding a nonqualified deferred compensation plan An organization that requires healthcare services to be provided by a network of physicians and hospitals is known as an ✔✔HMO In Arizona, and insurer providing small employer group medical plans may discontinue an employers coverage if ✔✔The insurer no longer offers the plan to any employer 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) ✔✔Group health coverage is NOT available for workers over the age of 65 hold harmless clause is an example of risk ✔✔to transfer. Shifts liability for loss from one party to anotherWhat is a "functional assessment" for long-term care benefits? ✔✔A review of the insured ability to perform the activities of daily living Which is an accurate description of the premium in a graded premium life insurance policy? ✔✔Annual increases in premium for a stated number of years then levels off for the remainder of the contract Which of the following BEST describes a "partial disability" ✔✔Unable to perform one or more job duties An insured may be required to sign which document at policy delivery to ensure there has not been any adverse medical conditions since the time of the application? ✔✔A good health statement The Arizona Life and Disability Insurance Guaranty Fund protects an insured in the event of ✔✔The insurers insolvency After an applicant reads and signs an insurance application, he/she should be conscious of the fact that ✔✔a false statement could lead to loss of coverage How many days notice does the Affordable Care Act require insurers to give before rescinding coverage? ✔✔30 Who typically makes the purchase payments in an individual annuity? ✔✔ownerDisability income policies provide protection for which of the following? ✔✔Economic death The reason for backdating a policy is ✔✔to obtain a premium rate based on an earlier age Pat is covered by a disability income insurance policy that covers disabilities arising from a work-related illness or injury. The amount of his disability income payments for an on-the-job injury may be reduced by ✔✔Benefits paid under workers' compensation Some standard Medicare Supplement policies include which benefit? ✔✔hospice care A terminated employee has how many days upon termination to convert group life insurance coverage to an individual policy? ✔✔31 days Which of the following does medical expense insurance NOT typically cover ✔✔Treatment in a government facility Which of the following is a true statement regarding a Medicare supplement policy purchased during the open enrollment period? ✔✔The policy will be issued regardless of health Which of the following is NOT an allowable exclusion for long-term care insurance policies? ✔✔Care for incurable conditions The insureds consideration given for a health insurance policy is ✔✔the first premium payment and the applicationAl surrenders his life insurance policy for its cash value. The total of the premiums paid into the policy minus total dividends received in cash or used to offset premiums is referred to as the ✔✔Cost basis Which of the following is NOT considered to be an expense for surviving family members of a deceased wage earner? ✔✔Unemployment tax expenses Under federal law, which of the following actions may result in a producer becoming imprisoned? ✔✔Producer embezzling funds from an insurer Which of these is a typical result of a concurrent review? ✔✔The length of time spent in the hospital is monitored Who is the beneficiary in a life insurance policy? ✔✔The stated person or entity who is designated to receive the death proceeds Larry wants to purchase an individual disability income policy to ensure that he will not experience a lapse in income should he become disabled. He has a two-month wage continuation benefit from his employer. What should the policy elimination period be for his individual policy? ✔✔60 days Which would be described as a beneficiary designation by class? ✔✔Children of the insured The standard provisions of an accident and health insurance policy require that the ✔✔policy, attached papers, and endorsements constitute the "entire contract"In what way are insurance policies said to be aleatory? ✔✔Involves the potential for the unequal exchange of value If a provision in an accident and health policy does not conform to Arizona's standards, the insurer must ✔✔Amend the policy to conform to Arizona's minimum standards Which of the following accurately describes a participating insurance policy ✔✔Policyowners may be entitled to receive dividends An annuity becomes incontestable after it has been in force for ✔✔2 years What could be the potential result of taking out a cash value loan under a life insurance policy? ✔✔Reduces the amount receivable upon surrender of the contract Which statement concerning a deferred annuity contract is correct? ✔✔The owner can be the beneficiary, annuitant, or neither The administrator of a reciprocal insurer who manages the premiums collected from the groups members is called ✔✔an attorney in fact Which of these pharmacy options is typically available to enrollees in a staff model HMO? ✔✔An inhouse pharmacy When a company is licensed by the Department of Insurance to do business in this state, it becomes ✔✔an authorized companyWhen replacing a life insurance policy, which of the following is advisable? ✔✔Wait until the new policy is issued and delivered before surrendering existing policy Which life insurance settlement option pays a stated monthly benefit until both principal and interest are exhausted? ✔✔Fixed amount installment option Unless it is regarding fraud, which of the following statements about the contestability of a life insurance policy is true? ✔✔The policy can usually only be contested by the insurer during the first two years of the contract In Arizona, an attempt to defraud an insurance company is considered ✔✔A felony Which statement about group life insurance is INCORRECT ✔✔Each participant requires evidence of insurability Individual health insurance policies must cover mentally and physically handicapped dependent children ✔✔Until they become self-supportive Julie is in need of assistance with one or two activities of daily living. She may be eligible for a(n) ✔✔assisted living facility The premiums paid by an employer for his employee's group life insurance are usually considered to be ✔✔tax-deductible to the employerKevin 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? ✔✔As a Section 1035 exchange Which of the following is NOT a dividend option for a life insurance policy? ✔✔Receiving the entire policy cash value A major medical expense plan typically includes coverage for hospital room and board. Which of the following is normally covered under the category "room and board"? ✔✔General nursing care The disability income policy most likely to have been issued on a substandard basis is ✔✔Noncancelable with a health condition exclusion rider A group-owned insurance company that is formed to assume and spread the liability risks of its members is known as a ✔✔risk retention group Misrepresenting pertinent policy provisions relating to coverage after a loss is ✔✔An unfair claims settlement practice Which type of Medicare supplement information can be used without prior state approval? ✔✔Government publications Which statement is NOT true regarding health insurance policies that provide limited benefits? ✔✔Only persons under the age of 65 are eligibleWhich of the following statements accurately describes the financial impact of total disability? ✔✔May be worse than the financial impact of death Which of the following is NOT a valid contract exchange? ✔✔An annuity exchanged for a life insurance policy Which of the following can be defined as "the potential for loss"? ✔✔Risk What are reasonable and customary charges for health insurance primarily based on? ✔✔Average charges within a geographic region What is the face amount of a $50,000 graded death benefit life insurance policy when the policy is issued? ✔✔Under $50,000 initially, but increases over time Which of these is true regarding the exchange of consideration among parties involved in an insurance contract? ✔✔Can be unequal Which statement regarding universal life insurance is correct? ✔✔Cash value accumulations have a guaranteed minimum interest rate All of the following may obtain a temporary producers license EXCEPT ✔✔An employee of a licensed producer who is retired When an individual purchases insurance as a result of threats made by the producer, there has been a violation of ✔✔Unfair trade practice lawsIn an individual retirement account (IRA), rollover contributions are ✔✔Unlimited by dollar amount How often must a notice of information practices be given to a policyholder? ✔✔At least once a year A licensee whose name or address changes must notify the department of insurance within ✔✔30 days A policy owner pays the first annual premium for a 50,000 life insurance policy and dies one month after the policy effective date. Which of these statements is normally true? ✔✔Beneficiary receives 50,000 income tax free Christine is receiving benefits provided from her disability income insurance. As compared to her previous earnings, the disability benefits should be ✔✔somewhat less An insurance company may delay the payment of the cash value of a surrendered whole life insurance policy for up to ✔✔6 month A life insurance policyowner would like a dividend option that results in a limited current outlay of funds. Which dividend option would be chose? ✔✔Reduction of premium payment When a Medicare Supplement insurance policy is being replaced, who must sign the notice of replacement? ✔✔The producer and the applicantSecurity laws passed by Congress are enforced by which Federal agency? ✔✔Security and Exchange Commission (SEC) The principal source of info concerning an applicants identity, age, and marital status is found in the ✔✔Completed application What determines how much an annuitant is paid for a variable annuity? ✔✔The market value fluctuations of the securities backing it Which life insurance policy option allows the policyowner to have coverage equal to the net death benefit of the lapsed policy? ✔✔Extended term nonforfeiture option Illustrations used in the sale of life insurance contain a statement that must be signed by ✔✔producer According to ERISA regulations, a summary plan description must be provided to a new plan member within _____ Days of the members eligibility date. ✔✔90 The authority to change the beneficiary in an individual annuity lies with the ✔✔Owner Starting in 2016, businesses with up to ___ employees will be defined by the ACA as a "small business". ✔✔100 A family counseling benefit is typically offered under which of these coverages? ✔✔hospice careUnder the telemarketing sales rule, [Show More]

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