Chapter Exam - Arizona Laws and Rules

An Arizona resident producer must be at least ____ years of age

18

After an annuity has been in force for ____ year(s), it becomes incontestable

2

An insurer must keep advertising materials and records for at least how many years?

3 years

Any administrative action taken against a producer MUST be reported to the Director within ___ days after the final disposition

30

A licensee whose name or address changes must notify the Department of Insurance within ___ days,

30 days

Every producer licensed in Arizona must notify the Director within how many days of any change of residential, business or e-mail address?

30 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?

31 days

Newborn children are automatically covered under an existing family medical plan at the moment of birth for a period of at least

31 days

Arizona allows a maximum of how many attempts in a 12-month period, before having to wait one year before attempting the exam again?

4 months

According to the telemarketing sales rules, what are the permissible calling hours for telemarketing calls?

8:00 AM

A consumer who has been recently denied insurance, credit, or employment based on an unfavorable consumer report MUST be advised as such. Which of the following does this statute originate from?

Fair Credit Reporting Act

A loss of minimum essential coverage usually counts as a qualifying event that triggers what?

a special enrollment period

A prepaid dental plan has an agreement in place with a network of dentists which

accepts an established amount as payment in full for the dental services rendered

A(n) ____ insurer operates in the U.S. but is headquartered outside the U.S.

alien

Which of these individuals may NOT obtain a temporary producer license?

an employee of a retired licensed producer

A client applies for an individual accident and health policy in Arizona. If the insurer collects personal information from any source other than public records or the applicant, a notice of application practices MUST be given to the applicant no later than the

application

If replacement was involved int he sale of a life insurance policy, a producer must provide a replacement notice no later than the

application date

An insured has been court-ordered to provide a child's health insurance. Upon this order, the insurer must allow the enrollment of this child

at any time

Notice of information practices must be given to a policyholder

at least once a year

A(n) _____ company is licensed by the Department of Insurance to conduct insurance business in Arizona

authorized

The refusal of doing business with an individual or business is called a(n)

boycott

If dividend option choices are offered on a whole life insurance policy, the policy MUST

contain a statement that dividends are NOT guaranteed

To protect information systems, brokers, and insurance companies must implement and maintain a(n):

cybersecurity policy

An insurer markets its products by soliciting customers by mass media advertising and mail WITHOUT using the services of a producer. Which of these marketing systems does the insurer utilize?

direct response

If a life insurance applicant is shown future premiums are to be paid out of non-guaranteed values, the illustration used in the sales presentation MUST

disclose that premium payments may need to be resumed depending an actual results

Group life plans sold in Arizona typically contain a conversion option. If the insured elects this option, the new policy

does NOT require evidence of insurability

The application is part of the annuity contract according to the

entire contract clause

Which statement best defines what a Policy Title means on an insurance policy?

every policy must have a title on the face and on the back of the policy, briefly describing the policy

An annuity contract may be returned for a full refund during the

free look period

According the the affordable care act (ACA), insurers can no longer deny health coverage due to pre-existing conditions unless that plan is a(n)

grandfathered plan

When is it acceptable to charge or receive a fee or service charge in addition to the premium in connection with the transaction of insurance?

if the amount of the fee or service charge is reasonably related to the cost of the service

Enrollees in a staff model HMO normally have which of the following pharmacy options available?

in-house pharmacy

What will Medicare charge if someone doesn't enroll in certain Medicare programs or plans when they're first eligible?

late enrollment penalty

Which of the following actions may result in a producer's license being suspended?

misappropriation of premiums

Which of these actions is considered to be an Unfair Claims Settlement Practice?

misrepresenting pertinent policy provisions relating to coverage after a loss

Which of the following is NOT a valid reason for an insurer to contest a life insurance policy during the policy's first two years of existence?

misstatement of age

If a Medicare Supplement policy is cancelled by the insurer, which of these circumstances does NOT require prior approval by the Arizona Department of Insurance?

nonpayment of premium

Which of these is NOT an Unfair Claims Settlement Practice?

offering to settle a claim by arbitration

A group Medicare Supplement policy was terminated and not replaced by the insurer. In this situation, the insurer MUST

provide an offer of conversion to individual coverage

The ACA must ensure a sufficient choice of ______ in the marketplace:

providers

A long-term care policyowner is replacing existing coverage with a new policy. Replacement regulations require a(n) ______ notice be signed by the applicant and retained by the replacing insurer.

replacement

Security laws passed by Congress are enforced by which Federal agency?

security and exchange commission

Which of the following entities does NOT establish regulations for variable insurance products?

state attorney general

Rick provides a notice of claim to his health insurer. If he does not receive a claim form within 15 days, he may comply with the proof of loss provision by

submitting written proof of loss

A group health certificate for coverage issued in Arizona MUST contain a(n)

summary of policy features and benefits

In order for a health plan to be an "accountable health plan", who has to approve it?

the director

Why were Exchanges implemented by the Affordable Care Act (ACA)?

to create a one-stop market for standardized health insurance plans

A life insurance policy can usually be contested by the insurer only during the first ___ years of the contract

two

Mentally or physically handicapped dependent children MUST be covered under an individual health insurance policy

until they become self-supportive

According to federal fraud and false statements regulation, what is required for a prohibited person to transact insurance business in this state?

written consent from the state insurance regulatory agency