Arizona Life Insurance Exam Questions And Answers (Latest Update 2023) Verified Answers (2024)

Arizona Life Insurance Exam Questions and Answers (Latest Update 2023) Verified Answers a whole life policy that provides a choice of dividend options include the following statement about dividends they accrue at a guaranteed ratethey are deferred for one year they are not guaranteed they are guaranteed after the first year - Correct Answers they are not guaranteedWhen there is a named beneficiary on a life insurance policy, the death benefits1. are directed to a trustee if the insured has any outstanding debts 2. are paid directly to the insured`s creditors, with any remaining balance forwarded to the beneficiary 3. are paid directly to the beneficiary, minus any debt claims by the insured`screditors 4. are paid directly to the beneficiary without interference from the insured`s creditors - Correct Answers are paid directly to the beneficiary without interference from the insured`s creditorsArizona Life Insurance Examthe child if the parents dieA nonparticipating whole life insurance policy was surrendered for its $20,000 cash value. The total premiums paid had totaled $16,000. What were the federal income tax consequences to the policyowner on receipt of the cash value?Arizona Life Insurance Exam Questions and Answers (Latest Update 2023) Verified Answers $16,000 was received as ordinary income and $4,000 as tax-free $20,000 was received as a capital gain $20,000 was received as ordinary income $16,000 was received tax-free and $4,000 as ordinary income - Correct Answers $16,000 was received tax-free and $4,000 as ordinary incomeThe surrender charge on many deferred annuity contracts are waived when the annuitant becomes unemployed annuitant dies or becomes disabled contract's interest rate falls below a stated percentageArizona Life Insurance Exam Questions and Answers (Latest Update 2023) Verified Answers contract is canceled within the first year - Correct Answers annuitant dies or becomes disabledWhich of these would NOT be a valid reason to add the waiver of premium rider to a life insurance policy? Prevents a policy from lapsing in the event of total disability Premiums waived by the insurer do not have to be repaid by the policyowner Policy's cash value would still increase as policy premiums are being waived It allows a policy loan to cover premium payments if the policyowner becomes totally disabled - Correct Answers It allows a policy loan to cover premium payments if the policyowner becomes totally disabled

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