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AZ Life Insurance Exam Prep Study Guide with answers
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AZ Life Insurance Exam Prep Study Guide with answersA |Contingent |Beneficiary |has |the |__________ |right |to |collect |an |Insured's |death |benefit. |- |correct
|answer |--Secondary
What |does |the |Producer |Licensing |Model |Act |(PLMA) |provide?
-A |uniform |set |of |insurance |regulations |
-Disability |income
-A |double |payout
-Private |Life |Maturity |Assets |- |correct |answer |--A |uniform |set |of |insurance |regulations
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 |- |correct |answer |--They |are |known |for |their |very |flexible
|payment |terms
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 |- |correct |answer |--Contract
,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 |- |correct |answer |--Life |Income
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 |- |correct |answer |--Third-party |policy
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 |- |correct |answer |--Greater |than
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 |- |correct |answer |--The |payout |is
|distributed |and |fixed |and |equal |installment |payments |over |a |specified |time |period
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) |- |correct |answer |--Vesting
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 |- |correct |answer |--False
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. |- |correct |answer |--There |is |usually |a |smooth
|transfer |of |a |business |to |the |beneficiary |upon |the |death |of |the |business |owner.
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 |- |correct |answer |--Equity-Indexed |Universal
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 |- |correct |answer |--Premiums |are |deductible |when |the |policy |benefits |are |paid
|out
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 |- |correct |answer |--a |Waiver |of |Premium |Rider
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) |- |correct |answer |--Sell |life |policies
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