AZ Life Insurance Exam Prep Study Guide with 100% Complete Solutions
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Course
Arizona Life Insurance
Institution
Arizona Life Insurance
AZ Life Insurance Exam Prep Study Guide with 100% Complete Solutions
-Secondary
A Contingent Beneficiary has the __________ right to collect an Insured's death benefit.
-A uniform set of insurance regulations
What does the Producer Licensing Model Act (PLMA) provide?
-A uniform set of in...
AZ Life Insurance Exam Prep Study Guide with 100% Complete Solutions
-Secondary
A Contingent Beneficiary has the __________ right to collect an Insured's death benefit.
-A uniform set of insurance regulations
What does the Producer Licensing Model Act (PLMA) provide?
-A uniform set of insurance regulations
-Disability income
-A double payout
-Private Life Maturity Assets
-They are known for their very flexible payment terms
All but which of the following are true about Whole life insurance policies?
-They are a traditional type of life insurance policy
-They are more restrictive than adjustable policies
-They are known for their very flexible payment terms
-Each premium payment is the same
-It is not easy to change the face amount
-Contract
A life insurance Policy is a(n) __________________ that requires the Insurer to pay the Death Benefit of the policy to the policy Beneficiary when the insured dies.
-Annuity
-Underwriting
-Promise
-Contract
-Life Income
Rachel is the Beneficiary of a life insurance policy. The insured has passed away. She reviews the various payout settlement options. Rachel chooses the option that operates like an annuity. What option did she choose for the payout?
-Periodic annuitized payout
-Fixed period installments
-Fixed amount installments
-Life Income
-Third-party policy
Aaron wants to buy an insurance policy and serve as the Beneficiary in the event that his daughter Cheryl passes away. What type of policy will Aaron purchase?
-First-party policy
-Third-party policy
-Second-party policy
-Indirect policy
-None of the above -Greater than
The premium for a Whole life policy is usually ________________ the premium of a Term life policy:
-Less than
-The same as
-Greater than
-Half the cost of
-One-third of
-The payout is distributed and fixed and equal installment payments over a specified time period
With a Fixed Installment Settlement option:
-The payout is distributed through fixed level installment payments over a specified time period
-It is like an annuity
-The proceeds are paid out monthly from the face amount and interest
-The interest is paid out and the face amount is paid out later
-Vesting
What is the term that relates to the amount of money that an Insured is entitled to withdraw from an annuity?
-Vesting
-Build up
-Defined benefit
-Single Premium Deferred Annuity (SPDA)
-False
Edmond suffered from a kidney condition that is controlled with medical treatment. He wants to purchase a life insurance policy. His pre-existing condition prevents him from getting a policy.
-True
-False
-There is usually a smooth transfer of a business to the beneficiary upon the death of the business owner.
All but which of the following are true about having Sole Proprietorship within a life insurance policy?
-There is usually a smooth transfer of a business to the beneficiary upon the death of the business owner.
-A sole proprietor has special needs and risks with respect to life coverage.
-There are considerable costs when transitioning from a dead business owner to their beneficiary.
-When a sole proprietor dies, so does their business.
-Equity-Indexed Universal
What type of Universal life policy offers a Policyholder the ability to increase the Cash Value of the policy based on changes in the stock index?
-Equity-Indexed Universal
-Equity Interest
-Current assumption
-Excess Interest -Premiums are deductible when the policy benefits are paid out
Which of the following is incorrect about the taxation of an individual's life insurance Policy?
-Beneficiaries typically do not pay taxes on the Death Benefit
-Premiums are deductible when the policy benefits are paid out
-Premiums are generally not tax-deductible in the year paid
-None of the above
-a Waiver of Premium Rider
Jerry wants to purchase a life insurance policy, but is worried that his failing hip will render him disabled and unable to pay the policy Premiums. What option could you suggest to Jerry?
-Disability Forgiveness
-a Qualified policy
-a Non-Qualified policy
-Do not purchase life insurance
-a Waiver of Premium Rider
-Sell life policies
Which of the following functions does an Underwriter NOT perform?
-the Evaluation of Risk
-the Review of Medical Histories
-the Selling of life Policies
-the Determination of the Premium Payment amount(s)
-Assets are not accessible by a judgment creditor
Saheed owns a valuable business, but often gets sued because his products sometimes cause personal
injury. Which advantage of a Tax-Qualified policy will provide an advantage to Saheed?
-Assets are not accessible by a judgment creditor
-Ratings applied to the policy are tax-deductible
-Qualified plans prevent breaches in coverage
-Premiums and contributions are tax deductible
-Group life policies
The federal Anti-Money Laundering laws do not apply to _______________.
-Whole life policies
-Group life policies
-Annuities
-An insurance product containing an investment element
-None of the above
-I, II and III
Lorenzo visits your insurance office to reach life insurance policies for the people employed by his software company. Which of the following should be considered when providing him with advice?
I. The business itself
II. The risks involved
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