FINAL EXAM ARIZONA LIFE AND HEALTH CORRECT QUESTIONS & ANSWERS(GRADED A)
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Course
ARIZONA LIFE AND HEALTH
Institution
ARIZONA LIFE AND HEALTH
If dividend option choices are offered on a whole life insurance policy, the policy
MUST - ANSWER contain a statement that dividends are NOT guaranteed
An insured files for an accident and health insurance policy claim eight days after the premium due date. The benefit payable is $500 and the o...
FINAL EXAM ARIZONA LIFE AND HEALTH
CORRECT QUESTIONS & ANSWERS(GRADED A)
If dividend option choices are offered on a whole life insurance policy, the policy
MUST - ANSWER contain a statement that dividends are NOT guaranteed
An insured files for an accident and health insurance policy claim eight days after the premium due date.
The benefit payable is $500 and the overdue premium is $200.
Assuming that the policy pays on a first-dollar basis and contains the unpaid premium provision, how
much will the insurer pay? - ANSWER $300
A licensee or applicant who is ordered into active military service may request that the license or
application be placed on inactive status by sending the department a: - ANSWER Written statement
An insurer will typically assess a back-end load on a deferred annuity that is cancelled during the early
contract years. What is this back-end load referred to as? - ANSWER Surrender charge
Which statement regarding the certificate of insurance is accurate? - ANSWER It indicates evidence of an
emplovee's insurance coverage
What could be the potential result of taking out a cash value loan under a life insurance policy? -
ANSWER Reduces the amount receivable upon surrender of the
contract
Home health care benefits typically do
NOT include coverage for - ANSWER Prescription medication
When issuing disability income coverage to a substandard risk, an insurance company may - ANSWER
shorten the benefit period
, In what situation could an insurance policy's coverage be modified? - ANSWER Applicant is a substandard
risk
Which type of deductible must be satisfied again for each illness or accident in a major medical plan? -
ANSWER Per-cause
The producer is responsible for providing the insurance applicant with privacy notices.
An individual is seeking coverage for nursing home (custodial) care that does NOT require any previous
period of hospitalization. Which program offers these specifications? - ANSWER AHCCCS
Which of these is NOT used as selection criteria in the underwriting process of a life insurance
application? - ANSWER national origin
A group health certificate for coverage issued in
Arizona MUST contain a(n) - ANSWER A summary of policy features and benefits
A life annuity feature which provides benefit payments for a minimum number of years, no matter when
the annuitant dies, is called - ANSWER period certain
Under a deferred annuity, which contract feature initially charges a 5-10% fee that eventually reduces to
$0 after a stated amount of time? - ANSWER surrender charge
A hold-harmless clause is an example of risk - ANSWER to transfer
A preferred provider plan and an indemnity plan are similar in what way? - ANSWER Both pay on a fee-
for-service basis
Which action will trigger a penalty tax on premature distributions from a modified endowment contract
(MEC)? - ANSWER policy loans
Qualified long-term care premiums are treated for tax purposes as - ANSWER tax-deductible to the
extent they exceed 7 1/2% AGI
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