Arizona Life Insurance Exam Prep 1 Flashcards
(139 cards)
1
Q
Which of the following does TRI-CARE provide accident and health coverage to?
A
Military families
2
Q
Which of the following is NOT a reason for purchasing life insurance on a child’s life?
A
Provide benefits for the child if the parents die
3
Q
Which of these may NOT be deducted from premium payments or the cash value of a variable life insurance policy?
A
Federal premium taxes
4
Q
Which of these is NOT considered a type of limited payment whole life insurance?
A
Endowment at age 70
5
Q
When premiums are determined, one factor would be the expenses of the
A
Insurer
6
Q
What type of risk involves the potential for loss with no possibility for gain?
A
Pure risk
7
Q
Which of the following is false regarding insurance?
A
As the number of insured units increases, the number of losses decreases
8
Q
A health plan offered by private insurance companies is
A
A Medicare Supplement
9
Q
Which of these statements regarding insurance is false?
A
The periodic payment amount is determined by the beneficiary’s age
10
Q
Which of the following provisions permits an insurer to return a portion of the premium and pay benefits on a pro rata basis if it finds that an insured has duplicate coverage?
A
Insurance with other insurers
11
Q
Which of the following would provide a reimbursement of some premiums when a long-term care policy is cancelled?
A
Return of premium rider
12
Q
When does the insured stop making payments under a thirty-payment whole life policy?
A
At the time of death or 30 years after the policy’s inception, whichever comes first
13
Q
When is an individual required to sign a good health statement for a life insurance policy?
A
When the policyowner has misrepresented their age on the application
14
Q
What is the ‘Use it or Lose it’ rule applies to
A
Flexible Savings Accounts (FSAs)
15
Q
Which of the following is NOT a condition that must be met for an accidental death benefit to be paid?
A
Cause of death must be from a job-related injury
16
Q
Which of the following would NOT be a valid reason to add the waiver of premium rider to a life insurance policy?
A
It allows a policy loan to cover premium payments if the policyowner becomes totally disabled
17
Q
When does the guaranteed cash value of a whole life insurance policy become available?
A
When the policy has a cash value
18
Q
Which of these statements regarding insurance is false?
A
The periodic payment amount is determined by the beneficiary’s age.
19
Q
A producer submits an application that discloses personal information about an applicant, who supplies the privacy notice?
A
Insurer
20
Q
Which of these may not be deducted from premium payments or the cash value of a variable life insurance policy?
A
Federal premium taxes
21
Q
How is an insured’s accident and health claim handled if it occurs during the policy’s grace period?
A
The unpaid premium may be subtracted from the reimbursement
22
Q
What is the eligibility requirement for Medicare Part B?
A
Must be eligible for Medicare Part A
23
Q
What is considered to be the collateral on a life insurance policy loan?
A
The policy’s cash value
24
Q
How is an annuity contract’s value calculated?
A
The annuity’s premium payments plus interest earned minus expenses and withdrawals
25
What qualifies as acceptance of an insurance contract offer?
The application and initial premium
26
What is the definition of 'pure risk'?
A situation where there is a potential for loss but no opportunity for gain
27
Which of the following is NOT a valid reason to add the waiver of premium rider to a life insurance policy?
It allows a policy loan to cover premium payments if the policyowner becomes totally disabled
28
How is an insured's accident and health claim handled if it occurs during the policy's grace period?
The unpaid premium may be subtracted from the reimbursement
29
Which of these provisions permits an insurer to return a portion of the premium and pay benefits on a pro rata basis if the insured has duplicate coverage?
Insurance with other insurers
30
Which of the following types of health insurers is characterized by a limited choice of providers?
Health maintenance organization (HMO)
31
When does evidence of insurability need to be provided for a life insurance policy?
When the death benefit is increased
32
What is the primary purpose of an emergency reserve fund in the needs approach to life insurance?
To cover the cost of unexpected expenses
33
What is the primary goal of the coordination of benefits provision in health insurance?
To reduce the opportunity for overinsurance
34
What is the main purpose of a waiver of premium rider in a life insurance policy?
To waive premium payments if the policyholder becomes disabled
35
What is the term for the period when an insurer has to approve or deny a claim?
Claim contestability period
36
What does a guaranteed insurability rider allow a policyholder to do?
Buy additional coverage at a later date without proving insurability
37
What does a policyowner need to do to receive a premium receipt for a life insurance application?
When the initial premium has been paid with the application
38
When is the 'free-look' period typically provided in life insurance?
Upon policy delivery
39
Which of these is NOT a valid reason for purchasing life insurance on a child's life?
Provide benefits for the child if the parents die
40
What is a major advantage of term life insurance?
The initial premium is lower compared to an equivalent amount of whole life coverage
41
What does a group credit life insurance policy typically cover?
Losses based on the outstanding loan balance
42
Which of the following is NOT a type of limited payment whole life insurance?
Endowment at age 70
43
Which of the following best describes the 'use it or lose it' rule in health insurance?
Flexible Spending Accounts (FSAs)
44
Which of the following statements is false regarding the waiver of premium rider in life insurance?
It allows a policy loan to cover premium payments if the policyowner becomes totally disabled
45
What is the cause of death requirement for accidental death benefits?
Accidental bodily injury must have been the cause of death
46
How is the premium for a life insurance policy determined?
Based on the insurer’s expenses, the policy’s death benefit, and risk factors
47
What determines the coverage amount under the extended term nonforfeiture option?
The entire face amount of the policy
48
What is the 'guaranteed cash value' of a whole life insurance policy when the insured turns 65?
Less than the policy's face amount
49
When an insured legally adopts a baby within ___ month(s) of birth, the maternity coverage for the child's birth is covered.
12
50
What is the guaranteed cash value of a whole life insurance policy when the insured turns 65 years old?
Less than the policy's face amount
51
What does the 'Use it or Lose it' rule apply to in health insurance?
Flexible Savings Accounts (FSAs)
52
Which of the following is NOT a valid reason for purchasing life insurance on a child's life?
Provide benefits for the child if the parents die
53
What is the advantage of purchasing term life insurance?
The initial premium is lower compared to an equivalent amount of whole life coverage
54
What is the length of time for which claims will be paid under a long-term care insurance policy?
Benefit period
55
Which of these provisions permits an insurer to return a portion of the premium and pay benefits on a pro-rata basis if it finds that an insured has duplicate coverage?
Insurance with other insurers
56
What is a premium rider in life insurance?
It allows a policy loan to cover premium payments if the policyowner becomes totally disabled
57
What is a provision that allows the insurer to return a portion of the premium and pay benefits on a pro-rata basis if the insured has duplicate coverage?
Insurance with other insurers
58
59
When does the insured stop making payments under a thirty-payment whole life policy?
At the time of death or 30 years after the policy's inception, whichever comes first
60
What qualifies as acceptance of an insurance contract offer?
The application and initial premium
61
What is the definition of 'pure risk'?
A situation where there is a potential for loss but no opportunity for gain
62
Which of the following is NOT a valid reason to add the waiver of premium rider to a life insurance policy?
It allows a policy loan to cover premium payments if the policyowner becomes totally disabled
63
How is an insured's accident and health claim handled if it occurs during the policy's grace period?
The unpaid premium may be subtracted from the reimbursement
64
Which of these provisions permits an insurer to return a portion of the premium and pay benefits on a pro-rata basis if it finds that an insured has duplicate coverage?
Insurance with other insurers
65
Which of the following would provide a reimbursement of some premiums when a long-term care policy is cancelled?
Return of premium rider
66
When does evidence of insurability need to be provided for a life insurance policy?
When the death benefit is increased
67
What does a guaranteed insurability rider allow a policyholder to do?
Buy additional coverage at a later date without proving insurability
68
What is the term for the period when an insurer has to approve or deny a claim?
Claim contestability period
69
What does a policyowner need to do to receive a premium receipt for a life insurance application?
When the initial premium has been paid with the application
70
Which of the following is NOT a reason for purchasing life insurance on a child's life?
Provide benefits for the child if the parents die
71
What is a major advantage of term life insurance?
The initial premium is lower compared to an equivalent amount of whole life coverage
72
What does a group credit life insurance policy typically cover?
Losses based on the outstanding loan balance
73
Which of the following is NOT a type of limited payment whole life insurance?
Endowment at age 70
74
Which of the following best describes the 'use it or lose it' rule in health insurance?
Flexible Spending Accounts (FSAs)
75
Which of the following statements is false regarding the waiver of premium rider in life insurance?
It allows a policy loan to cover premium payments if the policyowner becomes totally disabled
76
What is the cause of death requirement for accidental death benefits?
Accidental bodily injury must have been the cause of death
77
What is a provision that allows the insurer to return a portion of the premium and pay benefits on a pro-rata basis if the insured has duplicate coverage?
Insurance with other insurers
78
How is the premium for a life insurance policy determined?
Based on the insurer’s expenses, the policy’s death benefit, and risk factors
79
What determines the coverage amount under the extended term nonforfeiture option?
The entire face amount of the policy
80
What is the 'guaranteed cash value' of a whole life insurance policy when the insured turns 65?
Less than the policy's face amount
81
What is the length of time for which claims will be paid under a long-term care insurance policy?
Benefit period
82
Which of the following types of health insurers is characterized by a limited choice of providers?
Health maintenance organization (HMO)
83
What is the term for the period when an insurer has to approve or deny a claim?
Claim contestability period
84
What does a policyowner need to do to receive a premium receipt for a life insurance application?
When the initial premium has been paid with the application
85
Which of the following is NOT a reason for purchasing life insurance on a child's life?
Provide benefits for the child if the parents die
86
What is a major advantage of term life insurance?
The initial premium is lower compared to an equivalent amount of whole life coverage
87
What does a group credit life insurance policy typically cover?
Losses based on the outstanding loan balance
88
Which of the following is NOT a type of limited payment whole life insurance?
Endowment at age 70
89
Which of the following best describes the 'use it or lose it' rule in health insurance?
Flexible Spending Accounts (FSAs)
90
Which of the following statements is false regarding the waiver of premium rider in life insurance?
It allows a policy loan to cover premium payments if the policyowner becomes totally disabled
91
What is the cause of death requirement for accidental death benefits?
Accidental bodily injury must have been the cause of death
92
What is a provision that allows the insurer to return a portion of the premium and pay benefits on a pro rata basis if the insured has duplicate coverage?
Insurance with other insurers
93
How is the premium for a life insurance policy determined?
Based on the insurer’s expenses, the policy’s death benefit, and risk factors
94
What determines the coverage amount under the extended term nonforfeiture option?
The entire face amount of the policy
95
What is the 'guaranteed cash value' of a whole life insurance policy when the insured turns 65?
Less than the policy's face amount
96
What is the length of time for which claims will be paid under a long-term care insurance policy?
Benefit period
97
Which of the following types of health insurers is characterized by a limited choice of providers?
Health maintenance organization (HMO)
98
When does evidence of insurability need to be provided for a life insurance policy?
When the death benefit is increased
99
What is the primary purpose of an emergency reserve fund in the needs approach to life insurance?
To cover the cost of unexpected expenses
100
What is the primary goal of the coordination of benefits provision in health insurance?
To reduce the opportunity for overinsurance
101
What is the main purpose of a waiver of premium rider in a life insurance policy?
To waive premium payments if the policyholder becomes disabled
102
When does the insured stop making payments under a thirty-payment whole life policy?
At the time of death or 30 years after the policy's inception, whichever comes first
103
What qualifies as acceptance of an insurance contract offer?
The application and initial premium
104
What is the definition of 'pure risk'?
A situation where there is a potential for loss but no opportunity for gain
105
Which of the following is NOT a valid reason to add the waiver of premium rider to a life insurance policy?
It allows a policy loan to cover premium payments if the policyowner becomes totally disabled
106
How is an insured's accident and health claim handled if it occurs during the policy's grace period?
The unpaid premium may be subtracted from the reimbursement
107
Which of these provisions permits an insurer to return a portion of the premium and pay benefits on a pro-rata basis if it finds that an insured has duplicate coverage?
Insurance with other insurers
108
Which of the following would provide a reimbursement of some premiums when a long-term care policy is cancelled?
Return of premium rider
109
When does evidence of insurability need to be provided for a life insurance policy?
When the death benefit is increased
110
What does a guaranteed insurability rider allow a policyholder to do?
Buy additional coverage at a later date without proving insurability
111
What is the term for the period when an insurer has to approve or deny a claim?
Claim contestability period
112
What does a policyowner need to do to receive a premium receipt for a life insurance application?
When the initial premium has been paid with the application
113
Which of the following is NOT a reason for purchasing life insurance on a child's life?
Provide benefits for the child if the parents die
114
What is a major advantage of term life insurance?
The initial premium is lower compared to an equivalent amount of whole life coverage
115
What does a group credit life insurance policy typically cover?
Losses based on the outstanding loan balance
116
Which of the following is NOT a type of limited payment whole life insurance?
Endowment at age 70
117
Which of the following best describes the 'use it or lose it' rule in health insurance?
Flexible Spending Accounts (FSAs)
118
Which of the following statements is false regarding the waiver of premium rider in life insurance?
It allows a policy loan to cover premium payments if the policyowner becomes totally disabled
119
What is the cause of death requirement for accidental death benefits?
Accidental bodily injury must have been the cause of death
120
What is a provision that allows the insurer to return a portion of the premium and pay benefits on a pro-rata basis if the insured has duplicate coverage?
Insurance with other insurers
121
How is the premium for a life insurance policy determined?
Based on the insurer’s expenses, the policy’s death benefit, and risk factors
122
What determines the coverage amount under the extended term nonforfeiture option?
The entire face amount of the policy
123
What is the 'guaranteed cash value' of a whole life insurance policy when the insured turns 65?
Less than the policy's face amount
124
What is the length of time for which claims will be paid under a long-term care insurance policy?
Benefit period
125
Which of the following types of health insurers is characterized by a limited choice of providers?
Health maintenance organization (HMO)
126
What is the primary purpose of an emergency reserve fund in the needs approach to life insurance?
To cover the cost of unexpected expenses
127
What is the primary goal of the coordination of benefits provision in health insurance?
To reduce the opportunity for overinsurance
128
What is the main purpose of a waiver of premium rider in a life insurance policy?
To waive premium payments if the policyholder becomes disabled
129
What is the cause of death requirement for accidental death benefits?
Accidental bodily injury must have been the cause of death
130
What is a provision that allows the insurer to return a portion of the premium and pay benefits on a pro-rata basis if the insured has duplicate coverage?
Insurance with other insurers
131
How is the premium for a life insurance policy determined?
Based on the insurer’s expenses, the policy’s death benefit, and risk factors
132
What determines the coverage amount under the extended term nonforfeiture option?
The entire face amount of the policy
133
What is the 'guaranteed cash value' of a whole life insurance policy when the insured turns 65?
Less than the policy's face amount
134
What is the length of time for which claims will be paid under a long-term care insurance policy?
Benefit period
135
Which of the following types of health insurers is characterized by a limited choice of providers?
Health Maintenance Organization (HMO)
136
When does evidence of insurability need to be provided for a life insurance policy?
When the death benefit is increased
137
Mutual insurers pay dividends to participating policyowners if the insurer has which of the following?
Divisible surplus
138
139
