FINAL EXAM - ARIZONA LIFE AND HEALTH CORRECT QUESTIONS & SOLUTIONS|| 2024 LATEST UPDATE|| VERIFIED
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Course
ARIZONA LIFE AND HEALTH
Institution
ARIZONA LIFE AND HEALTH
Which of these is true regarding the exchange of consideration among parties involved in an insurance contract? - ANSWER Can be unequal
The premiums paid by an employer for his employee's group life insurance are usually considered to be? - ANSWER Tax-deductible to the employer
Kevin has an e...
FINAL EXAM - ARIZONA LIFE AND HEALTH
CORRECT QUESTIONS & SOLUTIONS||
2024 LATEST UPDATE|| VERIFIED
Which of these is true regarding the exchange of consideration among parties involved in an insurance
contract? - ANSWER Can be unequal
The premiums paid by an employer for his employee's group life insurance are usually considered to be?
- ANSWER Tax-deductible to the employer
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? - ANSWER As a section 1035 exchange
Which of these is NOT a common life insurance nonforfeiture option? - ANSWER Life income annuity
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? - ANSWER Custodial Care
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? - ANSWER Bringing legal action against the insurer
Health care costs can be better controlled by utilizing pre-admission testing. Pre-admission testing can
reduce the? - ANSWER Length of hospitalization
The "Use ir or Lose it" rule applies to - ANSWER Flexible Savings Account
fee-for-service is a method of administering health insurance benefit payments in which - ANSWER The
cost of each service is scheduled
,Use of XYZ Insurance Company brochures, business cards, and rating guides is an example of? - ANSWER
Apparent Authority
A life insurance illustration showing future premiums being paid out of no guaranteed values must
disclose that? - ANSWER The policy owner may need to resume premium payments depending on actual
results
When the court orders an insured to provide a child's health insurance, the insurer must allow the child
to be enrolled? - ANSWER At any time
Which of these statements is NOT a characteristic of the law of large numbers? - ANSWER Rates can be
calculated to compensate for losses
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? - ANSWER Application
How does the cost for a survivorship life policy compare to the cost of combining two separate individual
life insurance policies? - ANSWER Survivorship life policy is lower
How does a continuous premium whole life policy differ from a limited payment whole life policy? -
ANSWER The time period in which premiums will be paid
An agent's authority to bind an insurer to an insurance contract may be granted in the? - ANSWER
Agent's contract and the insurance company's appointment
Which statement concerning the Entire Contact provision in an individual accident and health insurance
policy is TRUE? - ANSWER The agent doesn't have the authority to change the policy or waive its
provisions
Under the Fair Credit Reporting Act, which statement is true? - ANSWER The consumer who was
investigated must be advised that credit, insurance, or employment was denied because of an
unfavorable report.
, Field underwriting by a producer? - ANSWER May result in the disclosure of hazardous activity of the
applicant.
When group benefits under COBRA have expired, a fully insured group policy can be converted to a(n) -
ANSWER Individual health policy
A life policy that has premiums that are lower than normal during the early years is called? - ANSWER
Modified Life
Which life insurance settlement option pays a stated monthly benefit until both principal and interest are
exhausted? - ANSWER Fixed amount installment option
What type of doctor-ordered care assists an individual with performing basic daily activists such as
bathing, dressing, eating? - ANSWER Custodial Care
Which of these occurrences could improve an insurer's ability to reduce premiums? - ANSWER Rate of
earnings on investments increase
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? - ANSWER Recurrent disability
A life annuity with a period certain is characterized as? - ANSWER Guaranteeing benefit payments for a
stated minimum period of time
Which life insurance policy option allows the policy owner to have coverage equal to the Net death
benefit of the lapsed policy? - ANSWER Extended term nonforfeiture option
For purposes of Disability Income Insurance, earned income would include all of the following EXCEPT -
ANSWER Dividends
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