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Arizona Life Exam with 100% correct answers
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Arizona Life Exam with 100% correct answers
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Arizona Life Exam with 100% correct answersWhat |happens |if |a |deferred |annuity |is |surrendered |before |the |annuitization |period? |- |correct
|answer |-The |owner |will |receive |the |surrender |value |of |the |annuity.
An |insured |just |died. |The |insured's |beneficiary |promptly |sent |the |insurer |proof |of |death. |According
|to |Arizona |law, |this |insurer |may |now |establish |a |period |of |time |during |which |the |settlement |will
|be |made. |What |is |the |greatest |amount |of |time |the |insurer |can |mandate |for |this |particular |period?
|- |correct |answer |-2 |months
Because |an |agent |is |using |stationery |with |the |logo |of |an |insurance |company, |applicants |for
|insurance |assume |that |the |agent |is |authorized |to |transact |on |behalf |of |that |insurer. |What |type |of
|agent |authority |does |this |describe? |- |correct |answer |-Apparent
All |of |the |following |are |characteristics |of |group |life |insurance |EXCEPT |- |correct |answer |-Premiums
|are |determined |by |the |age, |sex |and |occupation |of |each |individual |certificate |holder.
During |the |accumulation |period |in |a |nonqualified |annuity, |what |are |the |tax |consequences |of |a
|withdrawal? |- |correct |answer |-Taxable |interest |will |be |withdrawn |first |and |the |10% |penalty |will |be
|imposed |if |under |age |59 |½.
Under |which |of |the |following |annuity |options |does |the |annuitant |select |the |time |period |for |the
|benefits, |and |the |insurer |determines |how |much |each |payment |will |be? |- |correct |answer |-
Installments |for |a |fixed |period
An |insured |has |a |life |insurance |policy |from |a |participating |company |and |receives |quarterly
|dividends. |He |has |instructed |the |company |to |apply |the |policy |dividends |to |increase |the |death
|benefit. |The |dividend |option |that |the |insured |has |chosen |is |called |- |correct |answer |-Paid-up
|additions.
If |an |annuity |contract |has |defaulted |due |to |nonpayment |of |premiums, |when |can |it |be |reinstated? |-
|correct |answer |-Within |1 |year
,The |paid-up |addition |option |uses |the |dividend |- |correct |answer |-To |purchase |a |smaller |amount |of
|the |same |type |of |insurance |as |the |original |policy.
The |mode |of |premium |payment |- |correct |answer |-Is |defined |as |the |frequency |and |the |amount |of
|the |premium |payment.
A |long |stretch |of |national |economic |hardship |causes |a |7% |rate |of |inflation. |A |policyowner |notices
|that |the |face |value |of |her |life |insurance |policy |has |been |raised |7% |as |a |result. |Which |policy |rider
|caused |this |change? |- |correct |answer |-Cost |of |Living |Rider
A |producer |is |helping |a |married |couple |determine |the |financial |needs |of |their |children |in |the |event
|one |or |both |should |die |prematurely. |This |is |a |personal |use |of |life |insurance |known |as |- |correct
|answer |-Survivor |protection
The |LEAST |expensive |first-year |premium |is |found |in |which |of |the |following |policies? |- |correct
|answer |-Annually |Renewable |Term
A |policyowner |fails |to |pay |the |premium |due |on |his |whole |life |policy |after |the |grace |period |passes,
|but |the |policy |remains |in |force. |This |is |due |to |what |provision? |- |correct |answer |-Automatic
|premium |loan
Twin |brothers |are |starting |a |new |business. |They |know |it |will |take |several |years |to |build |the
|business |to |the |point |that |they |can |pay |off |the |debt |incurred |in |starting |the |business. |What |type
|of |insurance |would |be |the |most |affordable |and |still |provide |a |death |benefit |should |one |of |them
|die? |- |correct |answer |-Joint |Life
Which |of |the |following |protects |the |insured |from |an |unintentional |policy |lapse |due |to |a
|nonpayment |of |premium? |- |correct |answer |-Automatic |premium |loan
The |Life |and |Disability |Insurance |Guaranty |Fund |protects |insureds |and |policyholders |if |- |correct
|answer |-Insurers |lack |money |to |pay |off |claims
For |what |reason |may |a |life |insurance |producer |backdate |a |life |insurance |policy? |- |correct |answer |-
To |avoid |an |increase |in |premium |rate |for |the |insured
, An |insurance |company |is |domiciled |in |Montana |and |transacts |insurance |in |Wyoming. |Which |term
|best |describes |the |insurer's |classification |in |Wyoming? |- |correct |answer |-Foreign
Which |of |the |following |statements |regarding |HIV |testing |for |life |insurance |purposes |is |NOT |true? |-
|correct |answer |-Insurers |are |barred |from |requesting |HIV |testing
Which |nonforfeiture |option |provides |coverage |for |the |longest |period |of |time? |- |correct |answer |-
Reduced |paid-up
A |Straight |Life |policy |has |what |type |of |premium? |- |correct |answer |-A |level |annual |premium |for |the
|life |of |the |insured
Are |insurance |company |underwriters |allowed |to |discriminate? |- |correct |answer |-Yes, |but |not
|unfairly
What |is |the |penalty |for |IRA |distributions |that |are |below |the |required |minimum |for |the |year? |-
|correct |answer |-50%
Which |of |the |following |allows |the |insurer |to |relieve |a |minor |insured |from |premium |payments |if |the
|minor's |parents |have |died |or |become |disabled? |- |correct |answer |-Payor |Benefit
Which |of |the |following |is |TRUE |regarding |variable |annuities? |- |correct |answer |-The |annuitant
|assumes |the |risks |on |investment
A |producer |who |fails |to |separate |premium |monies |from |his |own |personal |funds |is |guilty |of |-
|correct |answer |-Commingling
If |a |change |needs |to |be |made |to |the |application |for |insurance, |the |agent |may |do |all |of |the
|following |EXCEPT |- |correct |answer |-Erase |the |incorrect |answer |and |record |the |correct |answer.
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