Arizona Life and Health Insurance Exam (Latest 2024/ 2025 Update) Questions and Verified Answers| 100% Correct| Grade A
Arizona Life and Health Insurance Exam
(Latest 2024/ 2025 Update) Questions and
Verified Answers| 100% Correct| Grade A
Q: Which statement concerning the Entire Contact provision in an individual accident and
health insurance policy is TRUE?
Answer:
The agent doesn’t have the authority to change the policy or waive its provisions
Q: Under the Fair Credit Reporting Act, which statement is true?
Answer:
The consumer who was investigated must be advised that credit, insurance, or employment was
denied because of an unfavorable report.
Q: Field underwriting by a producer?
Answer:
May result in the disclosure of hazardous activity of the applicant.
Q: When group benefits under COBRA have expired, a fully insured group policy can be
converted to a(n)
Answer:
Individual health policy
Q: In a qualified retirement plan, the yearly contributions to an employee’s account?
Answer:
Are restricted to maximum limits set by the IRS
Q: The unwritten authority given to a producer to carry out necessary incidental acts of the
agency agreement is called?
Answer:
Implied authority
Q: Which provision makes the application part of the annuity contract?
Answer:
Entire Contract clause
Q: Arizona Law require the Human Immunodeficiency Virus (HIV) consent form to?
Answer:
Disclose the types of individuals or organizations that may receive a copy of the test results
Q: Under which marketing system do insurers solicit customers by mass media advertising and
mail without their services of an agent?
Answer:
Direct Response
Q: A policy owner has just borrowed from a life insurance policy’s cash value. Which of these
statements is true?
Answer:
In the event of death, the loan amount is deducted from the policy proceeds
Q: According to federal fraud and false statement regulation, what is required for a prohibited
person to transact insurance business in this state?
Answer:
Written consent from the state insurance regulatory agency
Q: Employer-paid qualifies long-term care insurance premiums are typically?
Answer:
Excluded from the employee’s gross income
Q: When replacing a life insurance policy, which of the following is advisable?
Answer:
Wait until the new policy Is issued and deliver before surrendering existing policy
Q: Which of these may NOT be deducted from premium payments or the cash value of a
variable life insurance policy?
Answer:
Federal premium taxes
Q: A policy owner pays the first annual premium for a $50,000 Life Insurance policy and dies
one month after the policy effective fate. Which of these statements is normally true?
Answer:
Beneficiary receives $50,000 income tax-free
Q: A life policy that has premiums that are lower than normal during the early years is called?
Answer:
Modified Life
Q: Which life insurance settlement option pays a stated monthly benefit until both principal and
interest are exhausted?
Answer:
Fixed amount installment option
Q: What type of doctor-ordered care assists an individual with performing basic daily activists
such as bathing, dressing, eating?
Answer:
Custodial Care
Q: Which of these occurrences could improve an insurer’s ability to reduce premiums?
Answer:
Rate of earnings on investments increase
Q: An insured covered under a Disability Income policy is disabled and collecting benefits for a
period of two months. He returns to work and is again disabled from the same cause, whereupon
benefits continue to be paid. This is an example of which of the following?
Answer:
Recurrent disability
Powered by https://learnexams.com/search/study?query=
Which of these is true regarding the exchange of consideration among parties involved in an insurance contract? Can be unequal
The premiums paid by an employer for his employee’s group life insurance are usually considered to be? 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? As a section 1035 exchange
Which of these is NOT a common life insurance nonforfeiture option? Life income annuity
Linda is covered with long-term care insurance and has early-stage Alzheimer’s. She is still able to reside in her home while receiving primary care, as opposed to moving into a nursing home. All of the following long-term benefits encourage home health care EXCEPT? Custodial Care
An accident and health insurer has just received written proof of loss from one of its insurers. The insured must now wait 60 days before? Bringing legal action against the insurer
Health care costs can be better controlled by utilizing pre-admission testing. Pre-admission testing can reduce the? Length of hospitalization
“The “”Use ir or Lose it”” rule applies to” Flexible Savings Account
fee-for-service is a method of administering health insurance benefit payments in which The cost of each service is scheduled
Use of XYZ Insurance Company brochures, business cards, and rating guides is an example of? Apparent Authority
A life insurance illustration showing future premiums being paid out of no guaranteed values must disclose that? The policy owner may need to resume premium payments depending on actual results
When the court orders an insured to provide a child’s health insurance, the insurer must allow the child to be enrolled? At any time
Which of these statements is NOT a characteristic of the law of large numbers? Rates can be calculated to compensate for losses
In Arizona, when personal information is collected from a source other then the accident and health insurance applicant or public records, a notice or information practices must be given to the applicant no later than the date of? Application
How does the cost for a survivorship life policy compare to the cost of combining two separate individual life insurance policies? Survivorship life policy is lower
How does a continuous premium whole life policy differ from a limited payment whole life policy? The time period in which premiums will be paid
An agent’s authority to bind an insurer to an insurance contract may be granted in the? Agent’s contract and the insurance company’s appointment
Which statement concerning the Entire Contact provision in an individual accident and health insurance policy is TRUE? The agent doesn’t have the authority to change the policy or waive its provisions
Under the Fair Credit Reporting Act, which statement is true? The consumer who was investigated must be advised that credit, insurance, or employment was denied because of an unfavorable report.
Field underwriting by a producer? May result in the disclosure of hazardous activity of the applicant.
When group benefits under COBRA have expired, a fully insured group policy can be converted to a(n) Individual health policy
In a qualified retirement plan, the yearly contributions to an employee’s account? Are restricted to maximum limits set by the IRS
The unwritten authority given to a producer to carry out necessary incidental acts of the agency agreement is called? Implied authority
Which provision makes the application part of the annuity contract? Entire Contract clause
Arizona Law require the Human Immunodeficiency Virus (HIV) consent form to? Disclose the types of individuals or organizations that may receive a copy of the test results
Under which marketing system do insurers solicit customers by mass media advertising and mail without their services of an agent? Direct Response
A policy owner has just borrowed from a life insurance policy’s cash value. Which of these statements is true? In the event of death, the loan amount is deducted from the policy proceeds
According to federal fraud and false statement regulation, what is required for a prohibited person to transact insurance business in this state? Written consent from the state insurance regulatory agency
Employer-paid qualifies long-term care insurance premiums are typically? Excluded from the employee’s gross income
When replacing a life insurance policy, which of the following is advisable? Wait until the new policy Is issued and deliver before surrendering existing policy
Which of these may NOT be deducted from premium payments or the cash value of a variable life insurance policy? Federal premium taxes
A policy owner pays the first annual premium for a $50,000 Life Insurance policy and dies one month after the policy effective fate. Which of these statements is normally true? Beneficiary receives $50,000 income tax-free
A life policy that has premiums that are lower than normal during the early years is called? Modified Life
Which life insurance settlement option pays a stated monthly benefit until both principal and interest are exhausted? Fixed amount installment option
What type of doctor-ordered care assists an individual with performing basic daily activists such as bathing, dressing, eating? Custodial Care
Which of these occurrences could improve an insurer’s ability to reduce premiums? Rate of earnings on investments increase
An insured covered under a Disability Income policy is disabled and collecting benefits for a period of two months. He returns to work and is again disabled from the same cause, whereupon benefits continue to be paid. This is an example of which of the following? Recurrent disability
A life annuity with a period certain is characterized as? Guaranteeing benefit payments for a stated minimum period of time
Which life insurance policy option allows the policy owner to have coverage equal to the Net death benefit of the lapsed policy? Extended term nonforfeiture option
For purposes of Disability Income Insurance, earned income would include all of the following EXCEPT Dividends
What must the insurer provide to certificate holders when a group Medicare Supplement insurance policy is terminated and not replaced? An offer of conversion to individual coverage
If a producer misleads or fails to adequately disclose the title and true nature of a policy offered to a potential insured, it may be considered Misrepresentation
“James had individual health insurance with two different insurers. The “”insurance with other insurers”” provision states that an insurer can pay benefits on a pro-data basis if?” No notification was given to the insurer prior to the claim that the insured has other health coverage
Medicare Supplement insurance that provides a preventative medical care benefit will often cover? Yearly physics examinations
Which factor determines the maximum disability income benefits that can be purchased by an applicant? The applicant’s income
When a large sum of money is used to structure monthly payments, which product is typically used? An immediate annuity
All of these are duties that a producer may be required to perform when delivering an insurance policy EXCEPT? Leave a conditional receipt with client
A material change in a modified endowment contract (MEC) results in? The seven pay test, adjusted for cash value, applies again
Terry receives long-term physical therapy at her residence. What type of insurance would cover this service? Home health care
Unless it is regarding fraud, which of the following statements about the contestability of a life insurance policy is true? The policy can usually only be contested by the insurer during the first two years of the contract
What does a 401(k) plan generally provide its participants? Salary-deferral option
An employer has a group life coverage for his employees. How would an employee in poor health be treated in this situation? Eligible for the same type of coverage as the other employees
According to the Affordable Care Act (ACA), the proportion of premium revenues spent on clinical services and quality improvements is called the? Medical loss ratio
Which of the following is considered to be a prosthodontic dental procedure? Bridgework
A health plan offered by private insurance companies is? A Medicare Supplement
Which statement concerning a deferred annuity contract is correct? The owner converge beneficiary, annuitant, or neither
In what situation would Disability income insurance premiums be a deductible expense? Corporation paying for group disability income coverage for its employees
Which of these policies is considered a whole life policy? Single premium life
Tori has an annuity that pays her a $500 per month income benefit for life for ten years, whichever is longer. What kind of annuity is this? Fixed life annuity with period certain
The administrator of a reciprocal insurer who manages the premiums collected from the group’s members is called? An attorney in fact
All of these are used to prevent adverse selection in a group dental plan EXCEPT Decreased employee participation
Which of the following statements BEST describes employer contributions for employer provided health insurance? Employ contributions are deductible
Which of these is NOT considered to be a cost connected with an individual’s death? Business expenses
Scott has a life insurance policy in which the dividends are left with the insurance company. This particular policy may be paid up when the cash value plus accumulated dividends? Equal the Net single premium for the same amount at the insured’s attained age
In Arizona, an insurer providing small employer group medical plans may discontinue an employer’s coverage if? The insurer no longer offers the plan to any employer
An insured, age 67, is covered under a disability income policy. What will the insurer require in order for the insured to continue coverage? The insured must work for a stated number of hours per week
Which tax is normally associated with an individual’s death? Federal estate tax
Which of these statements reflects an accurate portrayal of Medicare SELECT? Insured uses preferred providers in exchange for paying lower premiums
A producer working for an insurance company may be personally liable for? Acts performed which are prohibited in the agency contract
Elimination periods normally apply to? Disability policies
According to HIPAA regulations, which of the following may reduce a medical plan’s pre-existing conditions exclusion? Any period of prior coverage
During the first two years a life insurance policy is in force, the insurer may contest a policy for all of the following reasons EXCEPT? Misstatement of age in the application
A teacher recently retired at age 63 and has a tax sheltered annuity (TSA). Periodic deposits total $120,000 and the value of the contract is now worth $200,000. How much is taxed if the current value is surrendered today? $200,000
The major medical deductible carryover period normally applies to expenses incurred during the last _ months of the plan year. Three Which of these situations would NOT potentially involve a prison sentence under Federal Law? Transacting Insurance with a nonresident license Individual’s covered with employer-paid group health plans will normally receive tax-free benefits under all these plans EXCEPT? Disability income How is a claim handled by a health insurer if it occurs during the policy’s grace period? The unpaid premium may be deducted from the reimbursement What action can an insurer take to discourage malingering and false disability claims? When an insured has two disability policies with the same insurer, the insurer sets limits in the amount of benefits an insured can collect In Arizona Life and Disability Insurance Guaranty Fund protects an insured in the event of? The insurer’s insolvency A business may purchase an annuity for all of the following reasons EXCEPT? Funding a non-qualified deferred compensation plan Which of the following can be defined as a cause of a loss? Peril Under the Telemarketing Sales Rule, telemarketing call May ONLY be received between the hours of? 8:00 AM to 9:00 PM In what situation could an insurance policy’s coverage be modified? Applicant is a substandard risk What type of risk involves the potential for loss with no possibility for gain? Pure risk Which statement regarding a single premium life insurance policy is NOT correct? Additional premiums may be required under certain conditions An annuity becomes incontestable after I has been in for for? 2 Years Major medical plans typically exclude coverage for which if the following benefits? Custodial Care EXCEPT for fraud, the time after issuance of a policy during which an insurance company may contest a health insurance claim due to the statements on an application is? 2 Years An insured is covered with a health insurance policy. If the insured would like to cancel the policy, he/she must? Notify the insurance company in writing According to the Pregnancy Discrimination Act of 1978, employers must treat pregnancy in the same manner as? Any other disability Which of the following is NOT subject to the promise to pay in an insuring clause? How the premium is calculated Which of these life insurance policies does NOT contain a cash value provision? Decreasing term life Disability income insurance normally excludes coverage for disabilities that arise from? Active duty military Which of these is NOT used as a selection criteria in the underwriting process of a life insurance application? National Origin Which of the following is considered a Limited accident and health plan? Cancer plan The annuitant in a single premium deferred annuity (SPDA)? Received immediate benefit payments Andy is in need of health care performed by skilled medical practitioners, but only in an intermittent basis. What level of care will his doctors likely prescribe? Intermediate Care Which statement regarding whole life insurance is accurate? Insurance coverage can continue for life Mike allied for life insurance and was issued a conditional receipt. He is later found to be insurance and is issued a policy. When does his coverage become effective? Date of issuance of the conditional receipt The Medical Information Bureau consists of members from which group? Insurance companies Some standard Medicare Supplement policies include which benefit? Hospice Care The conversion option for a group term insurance may be exercised by an employee? Within 31 days of terminated employment “Which life insurance policy provision prohibits a beneficiary from “”commuting, encumbering, withdrawing, or assigning”” any portion of the proceeds prior to actual receipt from the company?” Spendthrift clause The refusal of doing business with an individual or business is called a(n) Boycott Which of the following would permit an insurer to delay a covered disability policy claim? Elimination period Which of the following is a TRUE statement regarding universal life insurance? Policy states how much of each premium is used toward company expenses According to the Affordable Care Act (ACA), Insurers can no longer deny health coverage due to pre-existing conditions unless that plan is a(n)? Grandfathered plan Which type of deductible must be satisfied again for each illness or accident in a major medical plan? Per-clause Which of these is NOT a reason to buy a term life policy? To accumulate savings Medicaid will pay for nursing home expenses under what condition? Must have financial need In regards to health insurance, employees age 65 or older are typically required to? He offered the same group health benefits offered to the younger employees Employers often purchase life insurance on a key employee in order to? Pay for finding and training a replacement if the employee dies prematurely Individual health insurance policies must cover mentally and physically handicapped dependent children? Until they become self-supportive The Change of Occupation provision in a Disability Income policy states that, in the event the insured changes to a less hazardous occupation, which of the following may apply? Benefits can be increased in the event of a covered claim A policy owner suffers a covered accident and health insurance loss in June 30 and submits the proof of loss to the insurer July 10. If the policy owner cancelled the coverage on July 2, how will the insurance company handle the claim? Claim must be paid after proof of loss is received A producer must maintain customer records for how many years following the completion date of the insurance transaction? 3 years A life insurance policy’s contingent beneficiary is the? Person who receives the death benefits if the primary beneficiary dies before the insured Tonya has been diagnosed with kidney failure and has group accident and health insurance through her large employer. Which of these accident and health plans will be primary during the months following her diagnosis? Her employer’s group accident and health plan In a staff model HMO, enrollees normally have which of the following pharmacy options available to them? In-house pharmacy Which life insurance clause prohibits an insurance company from questioning the validity of the contract after a stated period of time has passed? Incontestable clause Which of the following is a syndicate established by a group of insurers to share underwriting duties? Lloyd’s organization Under the Telemarketing Sales Rule, telemarketing calls May NOT be received until? 8:00AM What is the federal income tax liability of death benefit paid from a health insurance policy to a named beneficiary? Benefits are not taxable A licensee whose name or address changes must notify the Department of Insurance within? 30 Days 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? Good health statement Illustrations used in the sale of life insurance contain a statement that must be signed by The producer All of the following are unfair claims settlement practices EXCEPT? An attempt to settle a claim by arbitration What kind of life policy typically offers mortgage protection? Decreasing term “Which of the following BEST describes a “”partial disability””?” Unable to perform one or more job duties During the early years of a whole life insurance policy, the cash value will normally be? Less than the total premiums paid Which of the following is associated with an immediate annuity? Lack of an accumulation period In Arizona, an attempt to defraud an insurance company is considered? A felony How do birthing centers reduce medical costs? Using certified nurse midwives When a lapsed policy’s premium has been paid current, it has the potential of being? Reinstated What is the minimum number of employee needed for a small employer medical expense plan in Arizona? 2 An agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium, when will the policy become effective? When the conditions of the receipt are met An individual currently owns a long-term care policy. At the time of application for similar coverage, which term must be signed by the applicant and retained by the insurer? A replacement notice Regulations for variable insurance contracts are set by all of the following EXCEPT State attorney general’s office Which benefit is normally payable to a life insurance policy owner when the insured’s life expectancy has been severely limited? Accelerated (living) benefit Medicare will cover a maximum of how many days per benefit period in a skilled nursing facility? 100 Days 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? $25,000 A life insurance policy provision that has the ability to reduce the death benefit is called the? Accelerated (living) benefit The contractual rights that allow the owner of the deferred annuity to surrender the cash value several years before the annuity date are called? Nonforfeiture options When family coverage is in place, newborn children are automatically covered under a medical plan for a period of at least 31 Days When an individual purchases insurance as a result of threats made by the producer, there has been a violation of? Unfair trade practice laws Which of the following would most likely purchase an immediate annuity? Retiree having a lump sum to invest An insurance company may delay the payment if the cash value of a surrendered whole life insurance policy for up to? 6 months Which plan offers coverage for nursing home (custodial) Care without requiring any previous period of hospitalization? AHCCCS (Arizona Health Care Cost Containment System) A Medicare Supplement policy is required to do which of the following? Provide a 30 day free-look period Which of the following financial products creates an instant estate, no matter when the date of death? Life Insurance A terminated employee has how many days upon termination to convert group life insurance coverage to an individual policy? 31 Days Medicare Supplement insurance requires an individual to be at least how old for open enrollment? No minimum age The inability to perform some of the duties of one’s own occupation is known as a Residual disability What is the accounting measurement of an insurance company’s future obligations to its policy owners? Reserves When compared to a fixed annuity, a variable annuity has what distinguishing feature? Investment risk is assumed by the purchaser Periodic health claim payments MUST be made at least? Monthly Which report contains information regarding an individual’s general reputation and credit standing? Consumer report Individuals who participate in an HMO plan are called? Subscribers When considering the replacement of an individual accident and yeah insurance policy, a pre-existing conditions exclusion in the new contract? May reduce the insured’s benefits According to the Affordable Care Act (ACA), the proportion of premium revenues spent on clinical services and quality improvements is called the? Medical loss ratio “James had individual health insurance with two different insurers. The “”insurance with other insurers”” provision states that an insurer can pay benefits on a pro-rata basis if?” No notification was given to the insurer prior to the claim that the insured has other health coverage Field underwriting by a producer? May result in the disclosure of hazardous activities of the applicant Employer-paid qualified long-term Care insurance premiums are typically? Excluded from the employee’s gross income Under the uniform mandatory provisions, an accident and health insurer has the right to request an autopsy? Only where not prohibited by law The power to change the beneficiary in an individual annuity lies with the? Owner Which of these policies is considered to be a comprehensive health policy? Major medical policy Which statement is true regarding hospital press mission certification for emergency situations? Notification is required to be given after insured is admitted to the hospital Medicare Part A does NOT provide coverage for? The first 3 pints of blood Which of the following is NOT covered by a comprehensive long-term care policy? Acute care Which group is the Do Not Cal Registry designed to protect against? Telemarketers Which of the following is NOT considered the responsibility of a producer during the underwriting process? Selecting the final approval date John has a criminal record in which he was convicted of a felony that involved dishonesty. Under Federal Law, how would John be able to engage in insurance transactions? Given written consent by the state insurance regulatory agency An insurance policy may be issued with a preferred insurance premium in all of these situations EXCEPT Living in a rural area Which of these is an accurate statement regarding the fixed period settlement option on a life insurance policy? A portion of the payments paid to the beneficiary comes from interest calculated in the proceeds of the policy An accident and health insurance policy’s premium requirements are set forth in which of the following provisions? Consideration clause How are level term policies able to provide level premiums? Premiums are averaged over the term of the policy Laura is a new employee and will be obtaining non-contributory group Major Medical Insurance from her employer. Which of the following actions must she take during the open enrollment period? Sign an enrollment card Who is the beneficiary in a life insurance policy? The stated person or entity who is designated to receive the death proceeds the major medical deductible carryover period normally applies to expenses incurred during the last __ months of the plan year. Three
the courts will normally interpret a policy in favor of the insured when the meaning of the policy is not clear. This is because an insurance policy is a(n)? Contract of adhesion
Long term care policies will usually pay for eligible benefits using which of the following methods? Expense Incurred
Which of the following is associated with an immediate annuity? Lack of an accumulation period
when does the producer give a premium receipt for a life insurance application? When the initial premium has been paid with the application
Which of the following statements BEST describes disability buy-sell insurance policies? Premiums are typically tax-deductible
Which of the following best describes the presumptive disability provision? Waived the normal total disability requirements
In Arizona, a group accident and health certificate of insurance must contain? The insurer’s financial statement
A physician who accepts assignment on all Medicare claims is called a(n) Participating provider
assets that back the non-guaranteed values of variable life insurance products are held in which account? Separate account set up by the insurer
How is a collateral assignment used in a life insurance contract? Transfers specific ownership rights to a creditor
where will a life insurance policy proceeds be directed to if all the beneficiaries die before the insured? Insured’s estate
when issuing disability income coverage on a substandard risk, an insurance company may Shorten the benefit period
In Arizona, an insurer discontinues offering a particular type of small group medical coverage. Participants must receive notice of at least 180 Days
When would evidence of insurability be required for a person already covered with a variable universal life policy? When the death benefit is increased
When determining the accumulation value of a deferred annuity, the total is calculated by taking the premiums paid plus interest earned minus Expenses and withdrawals
what would be the disadvantage of naming a trust as beneficiary of a life insurance policy Trust administration fees would reduce policy proceeds
What is the tax treatment of benefit payments for a non-qualified annuity? Benefit payments are always fully taxable
Which benefit supplement added to a life insurance policy insures an entire family? Family term rider
the guarantee of insurability option provides a long-term care policyowner the ability to? Buy additional coverage at a later date
What is considered a valid reason for an insurer’s refusal to pay policy proceeds directly to a minor? Minors are normally not capable of handling money in a reasonable manner
which of the following is NOT considered to be an expense for surviving family members of a deceased wage earner Unemployment tax expenses
Which of these pharmacy options is typically available to enrollees in a staff model HMO? An in-house pharmacy
where is respite care coverage typically found in? Long Term Care Policy
when an applicant apples for a large amount of life insurance coverage, which of the following would likely NOT be an underwriting requirement? Eye examination
Tim has an accident and health insurance policy that may not be changed in any way by the insurer up to a stated age, as long as the premiums are paid. What type of policy is this? Noncancelable
Which of these statements regarding insurance is false? As the number of insured units increases, the number of losses decrease
When a company is licensed by the Department of Insurance to do business in this state, it becomes? An authorized company
According to HIPAA regulations, which of the following may reduce a medical plan’s pre-existing conditions exclusion? Any period of prior coverage
what term describes the elimination of a hazard Risk Avoidance
The agreement in which hospitals and physician groups in a specific area contract with an insurance company to provide medical care at predetermined costs is? Preferred Provider Organization (PPO)
How long does one premium payment cover in a single premium whole life policy? Full life of the policy
Which statement regarding the waiver of premium rider is accurate? Cash payment is not directly provided to the policy owner
Under HIPAA requirements, how would an individual NOT be eligible for the pre-existing conditions exclusion waiver? There is a break in coverage of more than 63 days
Mike applied for life insurance and was issued a conditional receipt. He is later found to be insurance and is issued a policy. When does his coverage become effective? Date of issuance of the conditional receipt
Who may terminate coverage under a cancelable health insurance policy? The insurer or the insured
Giving up a known right on a voluntary basis is called a(n) Waiver
What is the face amount of a $50,000 graded death benefit life insurance policy when the policy is issued? Under $50,000, but increases annually until fully insured
Sarah, age 88, is a life annuitant who has lived beyond her life expectancy. The funds for additional benefits payments will be derived primarily from funds that were? not distributed to life annuitants who died before like expectancy
ABC partnership is a business with a limited number of partners. Which disability buy-sell agreement is best suited for this business? Cross Purchase agreement
An insurance contract may be voided if a misrepresentation found on the application is determined to be? Material
which of these must be disclosed in a universal life policy? The policy’s surrender charges
Laura as an employer-based preventative health care plan that focuses on an enrollee’s problems, such as drug abuse or stress. These plans are called? Wellness programs
A policy owner is permitted to take out a policy loan on a whole life policy at what point? When the policy has a cash value
Which benefit can be found in an equity indexed annuity, but not in a fixed annuity? Protection against long-term inflation
A preferred provider plan and an indemnity plan are similar in what way? Both pay on a fee-for-service basis
During the liquidation phase of an annuity contract, to whole are the income benefits normally payable to? Annuitant
“Which life insurance policy provision prohibits a beneficiary from “”commuting, encumbering, withdrawing, or assigning”” any portion of the proceeds prior to actual receipt from the company?” Spendthrift clause
A life insurance illustration showing future premiums being paid out of non-guaranteed values must disclose that The policy owner may need to resume premium payments depending on actual results
What does a Mandatory Second Surgical Opinion provisión provide to an employer-paid health insurance plan? Containment of the employer’s premium cost
What type of group plan is excluded from HIPAA statutes? Disability Income
Which of these statements are traditional individual retirement accounts is accurate? 10% penalty is applied to withdrawals prior to age 59 1/2
Which statement regarding an adjustable life insurance policy is NOT true? Policy loans are not permitted
Which statement about group life insurance is INCORRECT? Each participant requires evidence of insurability
How can a group dental insurer discourage adverse selection? Limit the duration of coverage
Misrepresenting pertinent policy provision relating to coverage after a loss is? An unfair claims settlement
What would be a valid reason for naming a trust as the beneficiary of a life insurance policy as opposed to naming an individual? Management of proceeds would be provided
Which individual would be best suited for Medicare Supplement insurance? Medicare enrollee
A group-owned insurance company that is formed to assume and spread the liability risks of its members is known as a Risk retention group
Which of the following is true regarding a person receiving a waiver of premium benefit? The insured must be disabled for a period of time
What are premiums for group credit life insurance based on? Flat rate unrelated to the borrower’s age
What do Limited accident and health policies normally cover? A specific illness or event
Which of the following statement is true regarding accident and health insurance claims that reimburse on an indemnity basis? Claims can be sent directly to the insured
When a Medicare Supplement insurance policy is being replaced, who must sign the notice of replacement The producer and the applicant
A signed good health statement may be requested by a life producer at the time of Policy delivery
The maximum prison sentence given under federal law for unfair and deceptive insurance practices is ? 15 years
Which of the statements BEST describes a double indemnity provision in travel accident insurance? Benefits are doubled under certain circumstances stated in the policy
Voluntarily terminating an insurance policy is also known as cancellation