AZ Life Insurance Exam Prep Study Guide CORRECT QUESTIONS & ANSWERS
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Course
Arizona Life and Health Insurance
Institution
Arizona Life And Health Insurance
Secondary - ANSWER A Contingent Beneficiary has the __________ right to collect an Insured's death benefit.
-A uniform set of insurance regulations - ANSWER What does the Producer Licensing Model Act (PLMA) provide?
-A uniform set of insurance regulations
-Disability income
-A double payou...
AZ Life Insurance Exam Prep Study Guide
CORRECT QUESTIONS & ANSWERS
-Secondary - ANSWER A Contingent Beneficiary has the __________ right to collect an Insured's death
benefit.
-A uniform set of insurance regulations - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER 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 -
ANSWER 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 - ANSWER 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 - ANSWER 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. - ANSWER 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 - ANSWER 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 - ANSWER 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
-United States vs. Southeastern Underwriters Association - ANSWER _______________ determined that
the sale of an insurance product from an entity in one state to an entity in a different state constitutes as
Interstate Commerce.
-Paul vs. Virginia
-The "Clayton" Antitrust Act
-Sherman Antitrust Act
-United States vs. Southeastern Underwriters Association
-a Guaranteed Insurability rider - ANSWER Sandra seeks life insurance coverage. She is young, but has
minor health issues and a very high earning potential. She would like to purchase a Policy that will allow
her to increase her coverage in the future without the need for another medical screening. What option
would you recommend to Sandra?
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