ALAHI Arizona Life Accident and Health Insurance Exam - Set 3 - Part 2
Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.
Question 21: A policyowner holds permanent coverage on which the insurer permits changes to the premium, the face amount and the length of the protection period, with underwriting required for increases in coverage. Which of the following policies is described?
Question 22: A policyowner may vary the amount and timing of premium payments, watch an interest crediting rate applied to an accumulation account, and see mortality and expense charges deducted each month. Which of the following policies operates this way?
Question 23: A universal life owner selects the death benefit option under which the beneficiary receives the specified face amount plus the accumulated account value, producing a benefit that grows as that account grows. Which of the following describes this selection?
Question 24: A client buys permanent coverage whose cash value is invested in separate account subaccounts chosen by the client, with the client bearing the investment risk and the producer needing a securities registration to sell it. Which of the following products is described?
Question 25: A policyowner holds flexible premium permanent coverage that credits interest based on the movement of an external stock index, subject to a stated cap on gains and a floor protecting against index losses. Which of the following products is described?
Question 26: A wealthy couple buys one policy covering both spouses that pays nothing at the first death and delivers the entire benefit when the second spouse dies, timed to meet estate taxes. Which of the following policies is described?
Question 27: An Arizona employer provides life coverage to all eligible employees under a single master contract, gives each participant a certificate rather than an individual policy, and pays the entire premium itself. Which of the following describes this plan?
Question 28: A policyowner receives a newly delivered life policy and decides within the stated period that the coverage is not wanted, returning it to the insurer. Which of the following describes what the free look provision entitles this policyowner to receive?
Question 29: A policyowner misses the premium due date on a life policy, and the insurer keeps the coverage in force for a stated additional period during which payment may still be made. Which of the following provisions creates this additional period?
Question 30: An insurer discovers three years after issue that an applicant understated a serious health condition, but the policy has remained in force continuously since the date it was issued. Which of the following provisions prevents the insurer from voiding the contract now?
Question 31: A policyowner whose life policy lapsed eighteen months ago wants it restored rather than buying new coverage, and the insurer sets out what will be required. Which of the following does the reinstatement provision typically require of this owner?
Question 32: After an insured dies, the insurer discovers that the application understated the insured's true age, meaning the premiums collected over the years were lower than they should have been. Which of the following describes how the misstatement of age provision resolves this?
Question 33: A policyowner is told that the printed policy together with the attached copy of the application make up the whole agreement, and that no other document may be brought in later. Which of the following provisions states this rule?
Question 34: A policyowner pledges a life policy to a bank as security for a loan, giving the bank rights only to the extent of the outstanding debt rather than transferring ownership outright. Which of the following describes this transfer?
Question 35: A policyowner names an adult child to receive the death benefit and names a sibling to receive it only if the child does not survive the insured. Which of the following describes the sibling's position under this designation?
Question 36: A policyowner designates the death benefit to go to all of the insured's surviving children rather than naming each child individually, so that a child born later is automatically included. Which of the following describes this beneficiary designation?
Question 37: An insured and the primary beneficiary die together in the same highway accident, and it cannot be established who died first, raising a question about where the death benefit should go. Which of the following provisions resolves this situation?
Question 38: A beneficiary leaves the entire death benefit on deposit with the insurer, receives periodic payments representing earnings on the principal, and preserves the full principal for a later withdrawal or for heirs. Which of the following settlement options is being used?
Question 39: A beneficiary selects a settlement providing payments for life, with a guarantee that if death occurs early the payments will continue to a named payee for the remainder of a stated number of years. Which of the following options is this?
Question 40: A policyowner stops paying premiums on a whole life policy and elects to keep the same face amount in force for as long as the accumulated cash value will support it. Which of the following nonforfeiture options has been chosen?
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