








Study with the several resources on Docsity
Earn points by helping other students or get them with a premium plan
Prepare for your exams
Study with the several resources on Docsity
Earn points to download
Earn points by helping other students or get them with a premium plan
Community
Ask the community for help and clear up your study doubts
Discover the best universities in your country according to Docsity users
Free resources
Download our free guides on studying techniques, anxiety management strategies, and thesis advice from Docsity tutors
Arizona life insurance exams-arizona basic unit with | 100% correct solutions | rade A+ 2025\2026
Typology: Exams
1 / 14
This page cannot be seen from the preview
Don't miss anything!
Beneficiary ✔✔A person who receives the benefits of an insurance policy Death Benefit ✔✔The amount paid upon the death of the insured in a life insurance policy Cash Value ✔✔Equity amount accumulated in permanent life insurance Estate ✔✔A person's net worth Illustrations ✔✔Presentation or depiction of nonguaranteed elements of a life insurance policy Life Insurance ✔✔Coverage on human lives Liquidation ✔✔Selling assets in order to raise capital (such as using cash value for capital needs) Lump-Sum ✔✔Payment of the entire benefit in one sum Minor ✔✔A person under legal age
Solvency ✔✔The ability to meet financial obligations (an insurance company maintains enough assets to pay claims) Survivor Protection ✔✔Life insurance can provide the funds necessary for the survivors of the insured to be able to maintain their lifestyle in the event of the insured's death and this is called Estate Conservation ✔✔Life insurance proceeds may be used to pay inheritance taxes and federal estate taxes so that it is not necessary for the beneficiaries to sell off the assets which is Estate Creation ✔✔The insured will have an estate worth the amount of the life policy upon the first paid premium which is Viatical Settlements ✔✔ allows someone living with a life-threatening condition to sell their existing life insurance policy and use the proceeds when they are most needed, before their death Viator ✔✔The insured selling their life insurance in a viatical settlement Viatical Settlement Provider ✔✔A person, other than a viator, that enters into a viatical settlement contract (the person buying the life insurance policy) Viatical Producer ✔✔A person who represents the viatical settlement provider
Industrial Insurance ✔✔Life Insurance written on an individual basis. It is written in small amounts (less than 1000), premiums are payable monthly, and are collected by a representative of the insurance company, and has no medical examination (also known as Home Service Insurance) Ordinary Life Insurance ✔✔Similar to Industrial Insurance, this life insurance is written on an individual basis. It has a larger face value, premiums can be paid annually, semiannually, quarterly, or monthly, and premiums are paid directly to the insurance company (also may require a physical examination to prove insurability) Key Person Insurance ✔✔Business Insurance that is bought on a key employee in order to fund replacing them, if need be. The business is the applicant, policyowner, premium payer, and the beneficiary. Employees must give permission for this coverage. Buy-Sell Funding ✔✔A legal contract that determines what will be done with a business in the event that an owner dies or becomes disable. Types of Buy-Sell Funding ✔✔1. Cross Purchase
Solicitation and Sales Presentation ✔✔An attempt to persuade a person to buy an insurance policy, orally or in writing Deceptive Acts ✔✔Acts that describe life insurance policies incorrectly, such as guaranteeing benefits following a lapse in premiums, of making a statement that cannot be verified in the contract (should not say) Prohibited Acts ✔✔Acts that agents cannot say, such as calling a policy an investment plan, charter plan, or profits, falsely implying that dividends are guaranteed, or that the policyholder will receive special treatment not listed in the contract (cannot say) Buyer's Guide ✔✔A guide that provides basic, generic information about life insurance policies that contains, and is limited to, language approved by the Department of Insurance (must be provided to applicants prior to first premium being collected) Policy Summary ✔✔A written statement describing the features and elements of the policy being issued, includes the name and address of the agent, the full name and home office of the insurer, the generic name of the basic policy and each rider, the premium, cash value, dividend, surrender value and death benefit figures for specific policy years (insurers must maintain a copy for 3 years) Life and Disability Insurance Guaranty Fund ✔✔Protects the interests of the insureds and policyholders when insurers become insolvent, and helps detect and prevent insurance company impairments (established by the Department of Insurance) (there is a disability account, a life insurance account, and an annuity account) (cannot say a policy is guaranteed by the existence of this) Interest-Adjusted Net Cost Method ✔✔Life Insurance Cost Comparison Method that considers the time value of money by applying an interest adjustment to yearly premiums and dividends
Comparative Interest Rate Method ✔✔Rate of return that must be earned on a 'side fund' in a buy term invest the different plan so that the value of the side fund will be equal to the surrender value of the higher premium policy at a designated point in time Life Insurance Surrender Cost Index ✔✔The index that determines the policy's guaranteed cash surrender value available to the policyowner at the end of the 10th and 20th policy year Suitability ✔✔An insurance producer may not recommend the purchase, sale, or exchange of a policy or annuity contract without the reasonable belief that the transaction is in the best interest of the insured which is called. Replacement ✔✔Any transaction in which new life insurance or a new annuity is purchased and, as a result, the existing life insurance or annuity will be replaced through one of several ways Replacing Insurer ✔✔Company that issues the new policy in a replacement Existing Insurer ✔✔Company whose policy is being replaced in a replacement Duties of a Replacing Producer ✔✔1. Present to the applicant a Notice Regarding Replacement that is signed by both the applicant and the producer. A copy must be left with the applicant.
Application Part 1 ✔✔The general information part of the application, such as demographic questions, as well as any existing policies, and what policy is being applied for Application Part 2 ✔✔The medical information part of the application including information of the insured's medical background, present health, and medical visits in recent years Agent's Report ✔✔Provides the agent's personal observations concerning the proposed insured, it is not a part of the entire contract, but a part of the application Signature ✔✔Both the agent and the proposed insured must provide their on the application (if a minor is the insured, then their guardian will provide this) Changes ✔✔If the agents wish to, they may make to the application by crossing out the line (it must still be visible) and writing in the and having the insured inital Premium Receipt ✔✔The agents issues a upon collecting the first premium which will determine when coverage will be effective Conditional Receipt ✔✔Used when the applicant submits a prepaid application, stating the coverage will be effective on the date of application of the date of the medical exam, which ever occurs last, as long as the applicant is found to be insurable at standard risk and the policy is approved as applied for Unconditional Reciept ✔✔Used most often with property and casualty insurance, covering begins immediately until the policy is issued (also known as binding)
Notice of Information Practices ✔✔Agents are required to disclose to a prospect the facts about information collection practices with the products that are proposing to sell, in the form of a Company Underwriting ✔✔The process of the insurance company reviewing the application and investigating other necessary information Attending Physician Statement ✔✔A statement from the applicant's physician which the insurance company may request and must pay for Paramedical Exam ✔✔A medical exam that includes blood work and a urine sample that is administered by a registered nurse or a paramedic, which the insurer must pay for Full Medical Exam ✔✔Occurs for applicants requesting higher amounts of coverage, if the application raised additional questions, or if the applicant is beyond a certain age which is an exam that investigates all aspects of the applicant's health, which the insurer must pay for Investigative Consumer Report ✔✔An inspection report on the applicant from an independent investigating firm or credit agency, which covers financial and moral information. The individual being investigated must be informed and have the option to request an interview instead. Medical Information Bureau ✔✔A membership corporation owned by member insurance companies. It is a nonprofit trade organization which receives adverse medical information from insurance companies and maintains confidential medical impairment information of individuals.
Frequency ✔✔How often the policyowner pays the premium, affects the price of the premium Higher = Higher Premium Delivery Receipt ✔✔Document verifying when an agent hand delivers an individual policy or annuity to the policy owner Policy Review ✔✔The agent delivering the policy and answering any questions or concerns is the Statement of Good Health ✔✔Signed by the insured, this verifies that the insured has not suffered injury of illness since the application date if the initial premium was submitted then