ARIZONA LIFE AND HEALTH INSURANCE EXAM (QUESTIONS & ANSWERS) LATEST UPDATE 2024 ALREADY, Exams of Nursing

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ARIZONA LIFE AND HEALTH INSURANCE

EXAM (QUESTIONS & ANSWERS) LATEST

UPDATE 2024 ALREADY GRADED A+

When the disclosure of an insured's nonpublic information is involved, what is the insurer obligated to do? Give notice, explain, and allow opting out Under the Telemarketing Sales Rule, telemarketing calls may NOT be received after 9:00 PM A health plan offered by private insurance companies is Medicare Supplement Chris has a single major medical contract which covers all medical expenses. His plan is considered to be 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 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 Ten year term insurance for a person aged 55 All of the following are unfair claims settlement practices except An attempt to settle a claim by arbitration What is covered under a limited accident and health insurance policy? Limited perils and amounts A life insurance policy provision that has the ability to reduce the death benefit is called 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 Written proof of the occurrence and extent of loss How are monthly life annuity benefit payments treated under a tax sheltered annuity (TSA)? Taxed as ordinary income in the year received 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

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 on the proceeds of the policy Under what circumstance does an accident and health insurer have the right to request an autopsy? When not prohibited by state law A material change in a modified endowment contract (MEC) results in the seven pay test, adjusted for cash value, being applied again Under an adjustable life insurance policy, which of the following may NOT be changed without further underwriting? The person insured 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 this EXCEPT for custodial care Employer-paid qualified long-term care insurance premiums are typically Excluded from the employee's gross income.

Which statement regarding the certificate of insurance is accurate? Indicates evidence of an employee's insurance coverage Purchasing insurance is an example of risk transference When an applicant applies for a large amount of life insurance coverage, which of the following would likely NOT be an underwriting requirement? 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 Experimental and investigative services All of these statements concerning group credit life insurance are false EXCEPT The face amount is determined by the outstanding loan balance Who may terminate coverage under and cancelable health insurance policy? insurer or insured The interest credited to the cash values of personally-owned non-qualified annuities is considered tax deferred

An insurer that confines or largely limits the exposures it writes to those of its owners is called captive Dividends from a mutual insurance company are paid to whom? Policyholders A business may purchase an annuity for all of the following reasons EXCEPT Informally finding a non-qualified deferred compensation plan An organization that requires healthcare services to be provided by a network of physicians and hospitals is known as an HMO In Arizona, and insurer providing small employer group medical plans may discontinue an employers coverage if The insurer no longer offers the plan to any employer Which of the following statements is NOT true concerning the relationship between group health insurance plans and Medicare? (Assuming the business has more than 20 employees) Group health coverage is NOT available for workers over the age of 65 hold harmless clause is an example of risk to transfer. Shifts liability for loss from one party to another

What is a "functional assessment" for long-term care benefits? A review of the insured ability to perform the activities of daily living Which is an accurate description of the premium in a graded premium life insurance policy? 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" 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? A good health statement The Arizona Life and Disability Insurance Guaranty Fund protects an insured in the event of The insurers insolvency After an applicant reads and signs an insurance application, he/she should be conscious of the fact that a false statement could lead to loss of coverage How many days notice does the Affordable Care Act require insurers to give before rescinding coverage?

Who typically makes the purchase payments in an individual annuity? owner Disability income policies provide protection for which of the following? Economic death The reason for backdating a policy is 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 Benefits paid under workers' compensation Some standard Medicare Supplement policies include which benefit? hospice care A terminated employee has how many days upon termination to convert group life insurance coverage to an individual policy? 31 days

Which of the following does medical expense insurance NOT typically cover Treatment in a government facility 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 Which of the following is NOT an allowable exclusion for long-term care insurance policies? Care for incurable conditions The insureds consideration given for a health insurance policy is the first premium payment and the application Al surrenders his life insurance policy for its cash value. The total of the premiums paid into the policy minus total dividends received in cash or used to offset premiums is referred to as the Cost basis Which of the following is NOT considered to be an expense for surviving family members of a deceased wage earner? Unemployment tax expenses Under federal law, which of the following actions may result in a producer becoming imprisoned? Producer embezzling funds from an insurer

Which of these is a typical result of a concurrent review? The length of time spent in the hospital is monitored Who is the beneficiary in a life insurance policy? 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 employer. What should the policy elimination period be for his individual policy? 60 days Which would be described as a beneficiary designation by class? Children of the insured The standard provisions of an accident and health insurance policy require that the policy, attached papers, and endorsements constitute the "entire contract" In what way are insurance policies said to be aleatory? 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 Amend the policy to conform to Arizona's minimum standards

Which of the following accurately describes a participating insurance policy Policyowners may be entitled to receive dividends An annuity becomes incontestable after it has been in force for 2 years What could be the potential result of taking out a cash value loan under a life insurance policy? Reduces the amount receivable upon surrender of the contract Which statement concerning a deferred annuity contract is correct? The owner can be the beneficiary, annuitant, or neither The administrator of a reciprocal insurer who manages the premiums collected from the groups members is called an attorney in fact Which of these pharmacy options is typically available to enrollees in a staff model HMO? An in-house pharmacy When a company is licensed by the Department of Insurance to do business in this state, it becomes an authorized company

When replacing a life insurance policy, which of the following is advisable? 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? Fixed amount installment option 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 In Arizona, an attempt to defraud an insurance company is considered A felony Which statement about group life insurance is INCORRECT Each participant requires evidence of insurability Individual health insurance policies must cover mentally and physically handicapped dependent children Until they become self-supportive Julie is in need of assistance with one or two activities of daily living. She may be eligible for a(n)

assisted living facility 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 the following is NOT a dividend option for a life insurance policy? 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"? General nursing care The disability income policy most likely to have been issued on a substandard basis is Non-cancelable with a health condition exclusion rider 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

Misrepresenting pertinent policy provisions relating to coverage after a loss is An unfair claims settlement practice Which type of Medicare supplement information can be used without prior state approval? Government publications Which statement is NOT true regarding health insurance policies that provide limited benefits? Only persons under the age of 65 are eligible Which of the following statements accurately describes the financial impact of total disability? May be worse than the financial impact of death Which of the following is NOT a valid contract exchange? An annuity exchanged for a life insurance policy Which of the following can be defined as "the potential for loss"? Risk What are reasonable and customary charges for health insurance primarily based on? 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? 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? Can be unequal Which statement regarding universal life insurance is correct? Cash value accumulations have a guaranteed minimum interest rate All of the following may obtain a temporary producers license EXCEPT 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 Unfair trade practice laws In an individual retirement account (IRA), rollover contributions are Unlimited by dollar amount How often must a notice of information practices be given to a policyholder? At least once a year

A licensee whose name or address changes must notify the department of insurance within 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? Beneficiary receives 50,000 income tax free Christine is receiving benefits provided from her disability income insurance. As compared to her previous earnings, the disability benefits should be somewhat less An insurance company may delay the payment of the cash value of a surrendered whole life insurance policy for up to 6 month A life insurance policyowner would like a dividend option that results in a limited current outlay of funds. Which dividend option would be chose? Reduction of premium payment When a Medicare Supplement insurance policy is being replaced, who must sign the notice of replacement? The producer and the applicant

Security laws passed by Congress are enforced by which Federal agency? Security and Exchange Commission (SEC) The principal source of info concerning an applicants identity, age, and marital status is found in the Completed application What determines how much an annuitant is paid for a variable annuity? 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? Extended term nonforfeiture option Illustrations used in the sale of life insurance contain a statement that must be signed by producer According to ERISA regulations, a summary plan description must be provided to a new plan member within _____ Days of the members eligibility date. 90 The authority to change the beneficiary in an individual annuity lies with the Owner

Starting in 2016, businesses with up to ___ employees will be defined by the ACA as a "small business". 100 A family counseling benefit is typically offered under which of these coverages? hospice care Under the telemarketing sales rule, telemarketing calls may ONLY be received between the hours of 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? $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? implied authority Employees generally receive workers compensation benefits for lost wages and medical expenses due to occupational accidents Which type of policy pays benefits to a policyholder covered under a Hospital Expense policy? reimbursement

The initial premium for a life insurance policy is typically paid in what way? It is typically obtained by the producer and forwarded to the insurer Regulations for variable insurance contracts are set by all of the following except State Attorney General's Office A life insurance illustration showing future premiums being paid out of nonguaranteed values must disclose that The policyowner may need to resume premium payments depending on actual results What is the eligibility requirement for Medicare Part B? Must be eligible for Medicare Part A Trade association groups that are eligible for group medical benefits normally are same industry Terry suffers an injury at his workplace which is covered by workers compensation. Terry also has a medical expense insurance policy. Under medical expense insurance policies, losses that are covered by workers compensation are typically Excluded from coverage The main purpose of an annuity is to

create a stream of income Which life insurance policy would be eligible to include an automatic premium loan provision whole life Which of the following is NOT an intended use of an annuity? Create new funds upon the death of a wage-earner Which of the following health insurance provisions requires that the application becomes part of the policy? Entire contract clause A certificate of coverage for a group health policy is best described as proof of coverage for the employee The refusal of doing business with an individual or business is called a Boycott An insured files for an accident and health insurance policy claim eight days after the premium due date. The benefit payable is $500 and the overdue premium is $200. Assuming that the policy pays on a first-dollar basis and contains the unpaid premium provision, how much will the insurer pay? $

Which of these is NOT an underwriting responsibility of a life insurance agent? Determining the final rate classification The insurer's obligation to pay a claim depends on whether the insured or beneficiary has complied with all policy conditions. This makes the policy a(n) conditional contract If group Health benefit levels are too high, what could be the end result? Overutilization of the plan Which of these is typically regarded as a major treatment in an indemnity dental plan? dentures An example of an endodontic treatment is a Root canal Under HIPAA requirements, eligibility for the pre-existing conditions exclusion waiver under new coverage is lost if There is a break in coverage of more than 63 days Under which marketing system do insurers solicit customers by mass media advertising and mail without the services of an agent?

direct response Which of the following incidents would NOT be covered by an accidental death and dismemberment policy? suicide How does the cost for a survivorship life policy compare to the cost of combining two separate life insurance policies? Survivorship life policy is lower Survivorship life policy is higher Depends on the investment performance of the underlying accounts Both have the same actuarial costs Survivorship life policy is lower Which of these life insurance policies does NOT contain a cash value provision? decreasing term life Which statement regarding whole life insurance is accurate Insurance coverage can continue for life Mike recently lost sight in both eyes. He has a policy that pays a lump sum benefit for this injury. What type of insurance does Mike have? Accidental Death and Dismemberment

Which provision makes the application part of the annuity contract? Entire contract clause Periodic health claim payments MUST be made at least monthly Under the uniform mandatory provisions, an accident and health insurer has the right to request an autopsy Only where not prohibited by law Assets that back the non-guaranteed values of variable life insurance products are held in which account? Separate account set up by the insurer Jerome is covered by a disability income policy that does NOT provide benefits for losses occurring as the result of his employment. What kind of coverage is this? Nonoccupational coverage What typically changes at the re-entry option date found in some term life policies? premium Which of the following is NOT subject to the promise to pay in an insuring clause? How the premium is calculated

According to the needs approach, an emergency reserve fund's primary purpose is to pay for unexpected expenses 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 A whole life policy that provides a choice of dividend options must include the following statement about dividends they are not guaranteed Which of the following statements best describes a double indemnity provision in travel accident insurance Benefits are doubled under certain circumstances stated in the policy In long-term care insurance, what is the length of time for which claims will be paid? Benefit period Which action will trigger a penalty tax on premature distributions from a modified endowment contract (MEC)? Policy loans

Which of these is NOT a reason to buy a term life policy? To accumulate savings Where is the difference between a standard risk and a substandard risk reflected? Premium charges Which of these is NOT considered a federal punishment for unfair and deceptive insurance practices? Community Service Long-term care policies will usually pay for eligible benefits using which of the following methods? Expense incurred When considering the replacement of an individual accident and health policy, a pre-existing conditions exclusion in the new contract May reduce the insureds benefits The "Use it or Lose it" rule applies to Flexible Savings Accounts A producer's license may be suspended For misappropriation of premiums

Typically, states will permit the grouping of two or more small employers in the same industry for obtaining group health insurance at a favorable rate. This grouping of employers is known as a multiple employer Trust Mark is covered by a policy that uses the regular occupation (own-occ) definition of total disability. Using this definition, he will be considered disabled if unable to perform the substantial and material duties of his regular occupation 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? Guaranteed insurability rider Medicaid will pay for nursing home expenses under what condition? Must have financial need How are level term policies able to provide level premiums? Premiums are averaged over the term of the policy Terry receives long-term physical therapy at her residence. What type of insurance would cover this service? home health care What does the rehabilitation benefit cover in a disability income policy?