Getcertkey has come up with the latest and real Insurance Licensing AZ-Insurance-Producer-Life Exam Dumps that can solve these drastic problems for you. We guarantee that these questions will be enough for you to clear the AZ-Insurance-Producer-Life (AZ-Insurance-Producer-Life) examination on the first attempt. Doubtlessly, cracking the Insurance Licensing AZ-Insurance-Producer-Life test of the AZ-Insurance-Producer-Life (AZ-Insurance-Producer-Life) credential is one tough task but this task can be made easier if you prepare with AZ-Insurance-Producer-Life (AZ-Insurance-Producer-Life) practice questions of Getcertkey.
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Life Insurance Basics | - Life Insurance Uses and Applications
| |
| Topic 2: General Insurance | - Risk and insurance concepts
| |
| Topic 3: Insurance Regulation | 5% | - Licensing
|
>> AZ-Insurance-Producer-Life Latest Test Vce <<
Because of not having appropriate review methods and review materials, or not grasping the rule of the questions, so many candidates eventually failed to pass the AZ-Insurance-Producer-Life exam even if they have devoted much effort. At this moment, we sincerely recommend our AZ-Insurance-Producer-Life Exam Materials to you, which will be your best companion on the way to preparing for the exam. And with high pass rate as 98% to 100%, you will be bound to pass the exam as long as you choose our AZ-Insurance-Producer-Life praparation questions.
NEW QUESTION # 103
A life annuity ceases payments to the annuitant at
Answer: C
Explanation:
A life annuity is designed to provide periodic income for as long as the annuitant remains alive. Accordingly, the event that terminates the annuitant ' s lifetime income is the annuitant ' s death.
The precise treatment of any remaining value after death depends on the settlement option. Under a pure or straight-life annuity, payments cease at death and no residual payments are due to a beneficiary. Under life with period certain, installment refund, cash refund, or joint-and-survivor arrangements, additional payments may continue to another person depending on the specific guarantee. Nevertheless, payments to the deceased annuitant necessarily cease at death.
" Maturity" is not the operative termination event for a life-contingent payout once annuitization has begun.
Age 100 is also not a universal termination age because lifetime income is specifically intended to protect against longevity risk, including survival to very advanced ages. "Policy termination" is too general and does not state the life-contingent event controlling the payout.
The defining insurance function of a life annuity is the transfer of the financial risk associated with outliving one ' s assets to the insurer.
Study Guide Reference: Annuities - life annuity; straight-life income; mortality risk; termination of lifetime payments.
NEW QUESTION # 104
What is the extended term nonforfeiture option in a life insurance policy?
Answer: B
Explanation:
The extended term nonforfeiture option uses the permanent policy ' s available cash value as a single premium to purchase term insurance generally equal to the original policy ' s face amount, after appropriate adjustments for outstanding indebtedness. The amount of available cash value determines how long the term protection can remain in force.
This contrasts with the reduced paid-up insurance option. Reduced paid-up insurance uses the cash value to purchase a smaller amount of permanent insurance that requires no further premiums. Thus, reduced paid-up maintains permanent coverage at a lower face amount, whereas extended term generally preserves the original face amount for a limited period.
Extended term does not simply extend the original policy beyond its stated contractual term. It represents a conversion of accumulated nonforfeiture value into term protection after premium payments on a cash-value policy cease. Nor does the insurer merely invest the cash value to increase benefits.
Nonforfeiture provisions protect the policyowner ' s accumulated equity and prevent that value from being entirely lost when a permanent policy is surrendered or premiums are discontinued.
Therefore, B precisely states the operation of extended term insurance.
Study Guide Reference: Life Insurance Policy Provisions, Options, and Riders - nonforfeiture options; extended term; reduced paid-up insurance; cash surrender.
NEW QUESTION # 105
A waiver is defined as the
Answer: B
NEW QUESTION # 106
According to the Fair Credit Reporting Act, an insurer needs to do all of the following, EXCEPT
Answer: C
Explanation:
The Fair Credit Reporting Act (FCRA) regulates the collection and use of consumer-report information in insurance underwriting. When an insurer obtains an investigative consumer report, the applicant must receive appropriate notice concerning the investigation and has rights concerning disclosure of the nature and scope of that investigation. When information from a consumer report contributes to an adverse underwriting decision, such as denial of coverage, an increased premium, or less favorable policy terms, the insurer must provide the applicant with an adverse-action notice.
The insurer is not, however, required to personally discuss each inconsistency appearing in the applicant ' s credit history. The consumer instead has statutory rights to obtain information from the consumer reporting agency and dispute information believed to be inaccurate or incomplete. FTC guidance confirms that adverse- action requirements include notification and information concerning the reporting agency and the consumer ' s dispute rights; they do not impose a general requirement that the insurer conduct a discussion with the applicant about individual credit discrepancies.
Therefore, D is the exception.
Study Guide Reference: Federal Laws and Regulations - Fair Credit Reporting Act; investigative consumer reports; adverse-action notices; applicant disclosure rights.
NEW QUESTION # 107
Which is NOT a characteristic of a variable annuity?
Answer: B
Explanation:
A variable annuity places accumulation values in one or more separate-account investment options. Because those values fluctuate according to investment performance, the contract owner bears the investment risk.
During annuitization, the number of annuity units generally becomes fixed, while the dollar value of those units can fluctuate with the performance of the underlying separate account. Consequently, variable annuity income is not inherently fixed and guaranteed.
That makes D the statement that is NOT characteristic of a variable annuity. A fixed annuity is the product more directly associated with guaranteed fixed-dollar income backed by the insurer ' s claims-paying ability.
Variable annuities are also securities products. Arizona law requires a person selling variable contracts to hold the appropriate life insurance producer authority and satisfy applicable securities-registration requirements.
Arizona specifically requires evidence of FINRA licensing or registration for persons selling variable contracts.
The separate-account structure is equally important because the assets supporting variable benefits are segregated from the insurer ' s general account and investment results are passed through to the contract owner.
Study Guide Reference: Annuities - variable annuities; separate accounts; investment risk; variable annuitization; securities regulation.
NEW QUESTION # 108
......
Download the free AZ-Insurance-Producer-Life pdf demo file of Getcertkey brain dumps. Checking the worth of the AZ-Insurance-Producer-Life exam questions and learns the format of questions and answers. A few moments are enough to introduce you to the excellent of the AZ-Insurance-Producer-Life Brain Dumps and the authenticity and relevance of the information contained in them.
AZ-Insurance-Producer-Life Test Braindumps: https://www.getcertkey.com/AZ-Insurance-Producer-Life_braindumps.html