AZ Insurance Exam 13-33 (2024/ 2025 Update) Questions and Verified Answers| 100% Correct| Grade A
AZ Insurance Exam 13-33 (2024/ 2025
Update) Questions and Verified Answers|
100% Correct| Grade A
Q: Which of the following is NOT a valid contract age?
Answer:
An annuity exchanged for a life insurance policy.
Q: Tim is covered by an accident and health insurance policy that may not be changed in any
way by the insurer up to a stetted age, as long as the premiums are paid. What type of policy is
this?
Answer:
Noncancelable
Q: An insurer will typically assess a back-end load on a deferred annuity that is cancelled
during the early contract years. What is the back-end load referred to as?
Answer:
Surrender charge
Q: What is considered a valid reason for small corporations to insure the lives of its major
stockholders?
Answer:
Fund a buy-sell agreement
Q: The insured’s consideration given for a health insurance policy is
Answer:
the first premium payment and the application
Q: And since major medical health insurance policy contains an eligible expense provision
which identifies the types of healthcare services that are covered all of the following healthcare
services are typically covered except for
Answer:
experimental and investigative services
Q: Mark is covered by a policy that issues the regular occupation (own-occ) definition of total
disability. He will be considered disabled if unable to
Answer:
perform the substantial and marital duties of his regular occupation
Q: Patrick purchased a long-term care policy. He has a health condition for which medical
treatment was recommended by a physician within 6 months prior to the policy’s effective date.
This condition is called a(n)
Answer:
pre-existing condition
Q: Newborn children are automatically covered under an existing family medical plan at the
moment of birth for a period of at least how many days?
Answer:
31
Q: How are benefit payments from individually-owned medical expense policies treated for tax
purposes?
Answer:
exempt from income taxes
Q: Bryce purchased a disability income policy with a rider that guarantees him the option of
purchasing additional amounts of coverage at predetermined times without requiring to provide
evidence of insurability what kind of rider is this?
Answer:
guaranteed insurability rider
Q: XYZ Corp gives money to an employee to purchase a life insurance policy and allows the
employee to select the beneficiary. What kind of plan is this?
Answer:
Split-dollar
Q: A life insurance policy provision that has the ability to reduce the death benefit is called the
Answer:
accelerated (living) benefit
Q: A group health certificate for coverage issued in Arizona MUST contain a
Answer:
summary of policy features and benefits
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Premature IRA distributions are subject to a penalty tax of 10%
The Life and Health Insurance Guaranty Corporation protects the public in the event of the impairment of a member insurer unable to pay claims
The is responsible for determining the appropriateness of a Medicare Supplement policy for an applicant. Producer
The type of health insurance in whichunderwriting procedures are the mostrestrictive is Individual
Replacement regulations exist in order to
What happens to the death benefit of a life insurance policy if the insured elects a partial payment from the accelerated (living) benefit provision? Reduced
An agent gives a conditional receipt to a client for an insurance policy aftercollecting the initial premium. When will the policy become effective? When the conditions of the receipt are met
Medicare Part A typically covers Inpatient drugs
A health plan offered by private insurance companies is a Medicare Supplement
Which of the following is NOT a reason for a business to buy key person life insurance? An increased pension liability if the key employee dies
An employer pays the accident andhealth insurance premiums for itsemployees. The premiums paid by theemployer are deductible to the business
Where will a life insurance policy’sproceeds be directed to if all thebeneficiaries die before the insured? Insured’s estate
Medicare can be described as a federal health insurance program for individuals over the age of 65 or permanently disabled
The reason for backdating a policy is to obtain a premium rate based on an earlier age
According to the needs approach, anemergency reserve fund’s primarypurpose is to cover the cost of unexpected expenses
An insurer’s life insurance premium rate must be the same for all individuals
A group Medicare Supplement policy was terminated and not replaced by the insurer. In this situation, the insurerMUST
In regards to health insurance,employees age 65 or older are typically required to be offered the same group health benefits offered to the younger employees
Which statement regarding the waiver of premium rider is accurate? Cash payment is not directly provided to thepolicyowner
A producer may share commission with another licensed but unappointed producer
Non-occupational disability coverage is designed for employees who suffer non-work related disabilities, since work-related disabilities are covered by Workers’ Compensation
Long-term care insurance provides one or more diagnostic, preventive, therapeutic,rehabilitative, maintenance, or personal care services in a setting other than an acute care unit of a hospital
Under the Maryland Health InsurancePlan, comprehensive health benefits are provided to medically uninsurable residents
Which of the following is a true statement regarding a Medicare Supplement policy purchased during the open enrollment period? The policy will be issued regardless of health
Patrick purchased a long-term carepolicy. He has a health condition forwhich medical treatment wasrecommended by a physician within 6months prior to the policy’s effective date. This condition is called a(n) pre-existing condition
Which of the following is NOT required to be reported by a producer? Producer’s change of financial status
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
Tim is covered by 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 the following is NOT a validreason for a producer’s license to berevoked? Sharing commissions with licensed agents
A life insurance policy provision that has the ability to reduce the death benefit is called the accelerated (living) benefit
All parts of the Medicare program (except for public information and enrollment) are administered by which federal agency? The Centers for Medicare and Medicaid Services
Which of the following is NOT a validreason for revoking a Marylandproducer’s license? Having no insurance appointment in effect for 10days
During the early years of a whole lifeinsurance policy, the cash value willnormally be less than the total premiums paid
Which of the following types of insurers limits the exposures it writes to those of its owners? Captive insurer
The amount of a covered loss to be paid by the insured before a major medical expense policy begins to pay is called the deductible amount
What is the name of the rider thatprovides an additional purchase option in a life insurance policy? Guaranteed insurability rider
Nonqualified medical expensedistributions from a Health SavingsAccount (HSA) have a tax penalty of 20%
At what point must a producer givenotification to the Commissioner about using an assumed name? Prior to using the assumed name
What does the rehabilitation benefit cover in a disability income policy? Covers the approved cost of the rehabilitationnecessary to help a disabled insured return to work
An insurable risk requires that the chance of loss be calculable
All long-term care policies sold inMaryland MUST contain a(n) nonforfeiture clause
According to federal fraud and falsestatements regulation, what is requiredfor a prohibited person to transactinsurance business in this state? Written consent from the state insurance regulatory agency
A producer’s license may only besuspended or revoked if the producer has been afforded a right to a hearing
Which of the following covers the Part A deductible of Medicare?
Premature IRA distributions are subject to a penalty tax of 10%
The annuitant in a single premiumdeferred annuity (SPDA) receives immediate benefit payments
Jose recently had his long-term carepolicy replaced with a new policy. Thenew long-term care policy may NOTimpose a(n) new pre-existing conditions exclusion
“Which of the following does NOT meet the requirements of “”skilled nursing care””?” Must be provided exclusively in a hospital
A life insurance producer’s underwriting duties may include seeking additional information requested by theinsurance company
Elimination periods typically apply to disability policies
Which statement about group lifeinsurance is INCORRECT? Each participant requires evidence of insurability
A qualified profit-sharing plan is designed to allow key employees to participate in the profits of the company
A life insurance policyowner is allowed _ days upon policy delivery to return the policy for a full premium refund. 10 All of the following are considered appropriate uses of life insurance for business purposes EXCEPT Protecting the business by covering entry level employees with life insurance When funds are transferred directly from one IRA to another IRA, what percentage of the tax is withheld? None The factor used most often when underwriting a disability income policy is annual earnings the Right-to-Examine period in Maryland for Long-Term Care policies is days. 30
Which of the following actions is REQUIRED by a producer who is replacing an existing life insurance policy? Submit to the replacing insurer a list of the policies to be replaced
Which of the following is NOT a reason for the commissioners to deny or refuse a producer license application? Unintentionally misrepresented a material fact on the application
Long-term care insurance and Medicare supplement plans have a free-look period of days. 30
All of these are common limiting factors with dental insurance EXCEPT for Limit placed number of teeth that may be treated annually
All of the following is considered a form of advertising EXCEPT An insurer’s AM Best rating
The automatic premium loan provision can be accurately described as a provision that provides a policy loan to pay any premiums by the end of the grace period
Kathy pays a monthly premium on her health insurance policy. How long is her grace period? 10 days
Which type of life insurance policy is best suited for paying off the outstanding balance of a 30-year mortgage in the event of the insured’s death? 30-year decreasing term
A producer may be disciplined by the Commissioner for which of the following actions? Misappropriation of premium funds
The absolute assignment of a life insurance policy results in all incidents of ownership transferred to the assignee