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Question & Answers ( Latest update)
When the disclosure of an insured's nonpublic information is involved, what is the insurer obligated to do? - CORRECT ANSWER ✔✔Give notice, explain, and allow opting out Under the Telemarketing Sales Rule, telemarketing calls may NOT be received after - CORRECT ANSWER ✔✔9:00 PM A health plan offered by private insurance companies is - CORRECT ANSWER ✔✔Medicare Supplement Chris has a single major medical contract which covers all medical expenses. His plan is considered to be - CORRECT ANSWER ✔✔comprehensive In accident and health insurance, 60 days must pass after written proof of loss has been received by an insurer before the insured may - CORRECT ANSWER ✔✔Bring legal action against the insurer When a ten year renewable term life insurance policy issued at age 45 is renewed, the premium rate will be the current rate for - CORRECT ANSWER ✔✔Ten year term insurance for a person aged 55
Question & Answers ( Latest update)
All of the following are unfair claims settlement practices except - CORRECT ANSWER ✔✔An attempt to settle a claim by arbitration What is covered under a limited accident and health insurance policy? - CORRECT ANSWER ✔✔Limited perils and amounts A life insurance policy provision that has the ability to reduce the death benefit is called - CORRECT ANSWER ✔✔Accelerated (living) benefit If an accident and health insurance claim form is NOT supplied to the insured within 15 says after the notice of claim, the insured may comply with the proof of loss provision by submitting - CORRECT ANSWER ✔✔Written proof of the occurrence and extent of loss How are monthly life annuity benefit payments treated under a tax sheltered annuity (TSA)? - CORRECT ANSWER ✔✔Taxed as ordinary income in the year received How does a continuous premium whole life policy differ from a limited payment whole life policy? - CORRECT ANSWER ✔✔The time period in which premiums will be paid
Question & Answers ( Latest update)
Employer-paid qualified long-term care insurance premiums are typically - CORRECT ANSWER ✔✔Excluded from the employee's gross income. Which statement regarding the certificate of insurance is accurate? - CORRECT ANSWER ✔✔Indicates evidence of an employee's insurance coverage Purchasing insurance is an example of risk - CORRECT ANSWER ✔✔transference When an applicant applies for a large amount of life insurance coverage, which of the following would likely NOT be an underwriting requirement? - CORRECT ANSWER ✔✔eye examination A comprehensive major medical health insurance policy contains an eligible expenses provision which identifies the type of health care services that are covered. All of the following health care services are typical covered EXCEPT for - CORRECT ANSWER ✔✔Experimental and investigative services
Question & Answers ( Latest update)
All of these statements concerning group credit life insurance are false EXCEPT - CORRECT ANSWER ✔✔The face amount is determined by the outstanding loan balance Who may terminate coverage under and cancelable health insurance policy? - CORRECT ANSWER ✔✔insurer or insured The interest credited to the cash values of personally-owned non- qualified annuities is considered - CORRECT ANSWER ✔✔tax deferred An insurer that confines or largely limits the exposures it writes to those of its owners is called - CORRECT ANSWER ✔✔captive Dividends from a mutual insurance company are paid to whom? - CORRECT ANSWER ✔✔Policyholders A business may purchase an annuity for all of the following reasons EXCEPT - CORRECT ANSWER ✔✔Informally finding a non-qualified deferred compensation plan
Question & Answers ( Latest update)
Which is an accurate description of the premium in a graded premium life insurance policy? - CORRECT ANSWER ✔✔Annual increases in premium for a stated number of years then levels off for the remainder of the contract Which of the following BEST describes a "partial disability" - CORRECT ANSWER ✔✔Unable to perform one or more job duties An insured may be required to sign which document at policy delivery to ensure there has not been any adverse medical conditions since the time of the application? - CORRECT ANSWER ✔✔A good health statement The Arizona Life and Disability Insurance Guaranty Fund protects an insured in the event of - CORRECT ANSWER ✔✔The insurers insolvency After an applicant reads and signs an insurance application, he/she should be conscious of the fact that - CORRECT ANSWER ✔✔a false statement could lead to loss of coverage
Question & Answers ( Latest update)
How many days notice does the Affordable Care Act require insurers to give before rescinding coverage? - CORRECT ANSWER ✔✔ 30 Who typically makes the purchase payments in an individual annuity? - CORRECT ANSWER ✔✔owner Disability income policies provide protection for which of the following?
- CORRECT ANSWER ✔✔Economic death The reason for backdating a policy is - CORRECT ANSWER ✔✔to obtain a premium rate based on an earlier age Pat is covered by a disability income insurance policy that covers disabilities arising from a work-related illness or injury. The amount of his disability income payments for an on-the-job injury may be reduced by - CORRECT ANSWER ✔✔Benefits paid under workers' compensation Some standard Medicare Supplement policies include which benefit? - CORRECT ANSWER ✔✔hospice care
Question & Answers ( Latest update)
used to offset premiums is referred to as the - CORRECT ANSWER ✔✔Cost basis Which of the following is NOT considered to be an expense for surviving family members of a deceased wage earner? - CORRECT ANSWER ✔✔Unemployment tax expenses Under federal law, which of the following actions may result in a producer becoming imprisoned? - CORRECT ANSWER ✔✔Producer embezzling funds from an insurer Which of these is a typical result of a concurrent review? - CORRECT ANSWER ✔✔The length of time spent in the hospital is monitored Who is the beneficiary in a life insurance policy? - CORRECT ANSWER ✔✔The stated person or entity who is designated to receive the death proceeds Larry wants to purchase an individual disability income policy to ensure that he will not experience a lapse in income should he become disabled. He has a two-month wage continuation benefit from his
Question & Answers ( Latest update)
employer. What should the policy elimination period be for his individual policy? - CORRECT ANSWER ✔✔60 days Which would be described as a beneficiary designation by class? - CORRECT ANSWER ✔✔Children of the insured The standard provisions of an accident and health insurance policy require that the - CORRECT ANSWER ✔✔policy, attached papers, and endorsements constitute the "entire contract" In what way are insurance policies said to be aleatory? - CORRECT ANSWER ✔✔Involves the potential for the unequal exchange of value If a provision in an accident and health policy does not conform to Arizona's standards, the insurer must - CORRECT ANSWER ✔✔Amend the policy to conform to Arizona's minimum standards Which of the following accurately describes a participating insurance policy - CORRECT ANSWER ✔✔Policyowners may be entitled to receive dividends
Question & Answers ( Latest update)
When replacing a life insurance policy, which of the following is advisable? - CORRECT ANSWER ✔✔Wait until the new policy is issued and delivered before surrendering existing policy Which life insurance settlement option pays a stated monthly benefit until both principal and interest are exhausted? - CORRECT ANSWER ✔✔Fixed amount installment option Unless it is regarding fraud, which of the following statements about the contestability of a life insurance policy is true? - CORRECT ANSWER ✔✔The policy can usually only be contested by the insurer during the first two years of the contract In Arizona, an attempt to defraud an insurance company is considered - CORRECT ANSWER ✔✔A felony Which statement about group life insurance is INCORRECT - CORRECT ANSWER ✔✔Each participant requires evidence of insurability Individual health insurance policies must cover mentally and physically handicapped dependent children - CORRECT ANSWER ✔✔Until they become self-supportive
Question & Answers ( Latest update)
Julie is in need of assistance with one or two activities of daily living. She may be eligible for a(n) - CORRECT ANSWER ✔✔assisted living facility The premiums paid by an employer for his employee's group life insurance are usually considered to be - CORRECT ANSWER ✔✔tax- deductible to the employer Kevin has an existing life insurance policy and assigns it to another insurer for a new contract. How would this transaction be treated for tax purposes? - CORRECT ANSWER ✔✔As a Section 1035 exchange Which of the following is NOT a dividend option for a life insurance policy? - CORRECT ANSWER ✔✔Receiving the entire policy cash value A major medical expense plan typically includes coverage for hospital room and board. Which of the following is normally covered under the category "room and board"? - CORRECT ANSWER ✔✔General nursing care
Question & Answers ( Latest update)
Which of the following is NOT a valid contract exchange? - CORRECT ANSWER ✔✔An annuity exchanged for a life insurance policy Which of the following can be defined as "the potential for loss"? - CORRECT ANSWER ✔✔Risk What are reasonable and customary charges for health insurance primarily based on? - CORRECT ANSWER ✔✔Average charges within a geographic region What is the face amount of a $50,000 graded death benefit life insurance policy when the policy is issued? - CORRECT ANSWER ✔✔Under $50,000 initially, but increases over time Which of these is true regarding the exchange of consideration among parties involved in an insurance contract? - CORRECT ANSWER ✔✔Can be unequal Which statement regarding universal life insurance is correct? - CORRECT ANSWER ✔✔Cash value accumulations have a guaranteed minimum interest rate
Question & Answers ( Latest update)
All of the following may obtain a temporary producers license EXCEPT - CORRECT ANSWER ✔✔An employee of a licensed producer who is retired When an individual purchases insurance as a result of threats made by the producer, there has been a violation of - CORRECT ANSWER ✔✔Unfair trade practice laws In an individual retirement account (IRA), rollover contributions are - CORRECT ANSWER ✔✔Unlimited by dollar amount How often must a notice of information practices be given to a policyholder? - CORRECT ANSWER ✔✔At least once a year A licensee whose name or address changes must notify the department of insurance within - CORRECT ANSWER ✔✔30 days A policy owner pays the first annual premium for a 50,000 life insurance policy and dies one month after the policy effective date. Which of these statements is normally true? - CORRECT ANSWER ✔✔Beneficiary receives 50,000 income tax free
Question & Answers ( Latest update)
The principal source of info concerning an applicants identity, age, and marital status is found in the - CORRECT ANSWER ✔✔Completed application What determines how much an annuitant is paid for a variable annuity?
- CORRECT ANSWER ✔✔The market value fluctuations of the securities backing it Which life insurance policy option allows the policyowner to have coverage equal to the net death benefit of the lapsed policy? - CORRECT ANSWER ✔✔Extended term nonforfeiture option Illustrations used in the sale of life insurance contain a statement that must be signed by - CORRECT ANSWER ✔✔producer According to ERISA regulations, a summary plan description must be provided to a new plan member within _____ Days of the members eligibility date. - CORRECT ANSWER ✔✔ 90 The authority to change the beneficiary in an individual annuity lies with the - CORRECT ANSWER ✔✔Owner
Question & Answers ( Latest update)
Starting in 2016, businesses with up to ___ employees will be defined by the ACA as a "small business". - CORRECT ANSWER ✔✔ 100 A family counseling benefit is typically offered under which of these coverages? - CORRECT ANSWER ✔✔hospice care Under the telemarketing sales rule, telemarketing calls may ONLY be received between the hours of - CORRECT ANSWER ✔✔8am and 9pm An insured has a $25,000 whole life insurance policy with $6,000 cash value available. Under the extended term nonforfeiture option, what is the amount of insurance available to the insured? - CORRECT ANSWER ✔✔$25, XYZ Insurance Company gives direct authority to its producers to sell insurance through an agency contract, but nothing is stated regarding the collection of premiums. Which authority grants the producer the right to collect premiums? - CORRECT ANSWER ✔✔implied authority
