ARIZONA LIFE INSURANCE EXAM

PDF Download

ARIZONA LIFE INSURANCE EXAM

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: What happens to the cash value of a market value adjusted annuity if it's surrendered prior to the end of the stated guarantee period?Subject to market value adjustment Subject to no adjustments Subject to a surrender charge only Cash value is forfeited

Answer:

Subject to market value adjustment Question 2: An individual participant personally received eligible rollover funds from a profit-sharing plan. What is the income tax withholding requirements for this transaction?10% is withheld for income taxes 20% is withheld for income taxes 30% is withheld for income taxes Nothing is withheld

Answer:

20% is withheld for income taxes

Question 3: Which would be described as a beneficiary designation by class?

Children of the insured Estate of the insured Tertiary beneficiary A specific named beneficiary

Answer:

Children of the insured

Question 4: which of the following statements about universal life insurance in NOT true death benefit can be increased premiums are flexible universal life insurance normally has a minimum guaranteed cash value for duration of the policy the cash value interest rate must equal or exceed a guaranteed minimum value

Answer:

universal life insurance normally has a minimum guaranteed cash value for duration of the policy Question 5: a trustee-to-trustee transfer of rollover funds in a qualified plan allows a participant to avoid mandatory income tax withholding on the amount transferred paying transfer fees paying trustee fees ever paying income taxes on the distributions

Answer:

mandatory income tax withholding on the amount transferred Question 6: What happens to the purchasing power of benefit payments from a fixed life annuity when the cost of living goes up?Increases Decreases Not affected by inflation Tied to stock index

Answer:

Decreases

Question 7: Which of the following is NOT a valid contract exchange?

• an annuity exchanged for a life insurance policy
• an annuity exchanged for another annuity
• a life insurance policy exchanged for another life insurance policy
• a life insurance policy exchanged for another annuity

Answer:

an annuity exchanged for a life insurance policy

Question 8: A retired couple would like to maximize the income derived from their combined life savings and have it payable until they both die. Which annuity would be their best choice?Fixed annuity Survivorship annuity Joint life annuity Joint and survivor annuity

Answer:

Joint and survivor annuity Question 9: When funds are transferred directly from one IRA to another IRA, what percentage of the tax is withheld?10% 20% 30% None

Answer:

none Question 10: An insurance policy that can also be classified as a securities product is called variable life modified life universal life a Modified Endowment Contract

Answer:

variable life

Question 11: A Keogh plan is a(n)

unqualified retirement plan for large corporations qualified retirement plan for the self employed tax-exempt annuity for government workers split dollar plan for key employees

Answer:

qualified retirement plan for the self employed Question 12: 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 agent's license and insurance company's certificate of authority buyer's guide and policy summary state guaranty association

Answer:

agent's contract and the insurance company's appointment Question 13: 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 The availability of cash value loans The availability of nonforfeiture options The settlement options

Answer:

The time period in which premiums will be paid

Question 14: An annuity's accumulation period may

continue after the purchase payments stop continue after the benefit payments start continue after the annuitant dies continue after the annuity has been surrendered

Answer:

continue after the purchase payments stop Question 15: when the deferred annuity is surrendered, who must sign the authorization to do so owner annuitant and beneficiary annuitant all parties involved

Answer:

owner Question 16: An individual who purchases a modified life insurance policy expects a higher rate of return coverage for two people an improvement in future income a flexible face amount

Answer:

an improvement in future income