Final Exam Arizona Life and Health CORRECT QUESTIONS & SOLUTIONS(RATED A)
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Course
ARIZONA LIFE AND HEALTH
Institution
ARIZONA LIFE AND HEALTH
Insurance crimes which affect interstate commerce are prosecuted by the - ANSWER US Attorney General
A(n)___insurer restricts the exposures it writes to those of its owners. - ANSWER Captive
Which statement best defines what a Policy Title means on an insurance policy? - ANSWER Every policy m...
Final Exam Arizona Life and Health
CORRECT QUESTIONS & SOLUTIONS(RATED
A)
Insurance crimes which affect interstate commerce are prosecuted by the - ANSWER US Attorney
General
A(n)___insurer restricts the exposures it writes to those of its owners. - ANSWER Captive
Which statement best defines what a Policy Title means on an insurance policy? - ANSWER Every policy
must have a title on the face and on the back of the policy, briefly describing the policy
When a health insurance policy includes a Mandatory Second Surgical Opinion provision, the insured
must - ANSWER seek a second opinion for specified elective surgeries
What happens when a policy owner borrows against the cash value of his life insurance policy? -
ANSWER The policy proceeds would be reduced by the outstanding loan balance
Which of the following reduces the opportunity for over-insurance? - ANSWER Coordination of benefits
provision
Under which circumstance may an insurer discontinue a small employer group medical plan? - ANSWER
Insurer discontinues offering the plan to all employers
Which of these is NOT an Unfair Claims Settlement Practice? - ANSWER Offering to settle a claim by
arbitration
All of these statements concerning group credit life insurance are false EXCEPT - ANSWER The face
amount is based on the outstanding loan balance
, After an annuity has been in force for__year(s), it becomes incontestable. - ANSWER 2
When an individual is planning to protect his family with life insurance, one method of doing so is called
needs analysis. What exactly does needs analysis involve? - ANSWER identifies the needs of an individual
and the individual's dependents
A life insurance policy that contains an accelerated (living) benefit rider will provide funds if the -
ANSWER insured is expected to be confined to a nursing home for life
What is the face amount of a $50,000 graded death benefit life insurance policy when the policy is
issued? - ANSWER Under $50,000 initially, but increases over time
Which of the following statements is NOT true concerning the relationship between group health
insurance plans and Medicare? - ANSWER Group health coverage is NOT available for workers over the
age of 65
An agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium.
When will the policy become effective? - ANSWER When the conditions of the receipt are met
Larry has a Major Medical Expense policy for his family with a $1,000 per family/per year deductible and
an 80/20 coinsurance provision. If Larry's family files four claims of $400, $800, $100, and $700 in one
year, how much will the insurance company pay? - ANSWER Correct. In this situation, the insurer will pay
$800. $400 + $800 + $100 + $700 = $2,000. The insurance company pays 80% of $1,000 (outstanding
balance after deductible is paid), or $800.
Which of the following describes coverage for the Medicare Part B coinsurance? - ANSWER A Medicare
Supplement core benefit
A large corporation pension plan purchased an accumulation annuity contract where all of the
participating employees received certificates of participation. What is this contract called? - ANSWER
Group deferred annuity
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