ARIZONA LIFE INSURANCE EXAM ACTUAL
EXAM WITH COMPLETE 125 QUESTIONS
AND DETAILED ANSWERS RATED A |
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John recieved a one-time distribution of $50,000 from his
modified endowment contract(MEC). Prior to that, the
contract's cash value was $150,000, the contract investment
amount was $100,000, and the death benefit was $500,000.
What percentage of the $50,000 distributions was taxable as
ordinary income?
as section 1035 exchange
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?
,joint life
What type of life insurance policy covers two or more persons
and pays the face amount upon the death of the first insured?
31 days
Greg had recently been terminated from his job that covered
him for group life insurance. How long does he have to convert
his coverage to an individual policy?
Distribution is subject to federal income tax withholding
An employee requested that the of her 401(k) account be sent
directly to her in one lump sum. Upon reciept of the
distribution, she immediately had the funds rolled into an IRA.
What is the tax consequence of the distribution sent to this
employee?
automatic premium loan
,in the event of premium default, which life insurance provision
will use the cash value to keep the policy in force?
date of issuance of the conditional reciept
Mike applied for life insurance and was issued a conditional
receipt. He is later found to be insurable and is issued a policy.
When does his coverage become effective?
reduced
What happens to the death benefit of a life insurance policy if
the insured elects a partial payment from the accelerated
(living) benefit provision?
Decreases the death benefit
In what way is a life insurance policy affected by an accelerated
benefit payment?
4 attempts
, Arizona allows a maximum of how many attempts in a 12-
month period, before having to wait on year before attempting
the exam again?
create a stream of income
The main purpose of an annuity is to
An employee quits her job and receives $50,000 from her
qualified plan
Which of the following situations would allow funds to be
deposited into a rollover IRA?
Misrepresenting pertinent policy provisions relating to
coverage after a loss
Which of these actions is considered to be an Unfair Claims
Settlement Practice?
its underlying investments
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