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Free Arizona Examination for Accident and Health or Sickness Insurance Producer Practice Questions

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Sample Practice Questions

Try these 10 sample questions from the Arizona Examination for Accident and Health or Sickness Insurance Producer practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

  1. 1An Arizona resident applies for an accident and health producer license. What is the minimum age the director must verify before approving the individual application?

    1. A. 17 years
    2. B. 18 years
    3. C. 19 years
    4. D. 21 years

    Answer: B

    Explanation: A.R.S. § 20-285(B)(1) says the individual must be "at least eighteen years of age." Therefore 18 is the licensing threshold.

    Reference: 20-285 - Application for license — A.R.S. § 20-285(B)(1)

  2. 2A health insurer raises an applicant's premium after a consumer report contributes to its decision. Which FCRA response is triggered by that use of the report?

    1. A. Send the applicant an adverse-action notice about the report-based decision.
    2. B. Send the applicant a routine renewal notice about the new premium.
    3. C. Send the applicant a claim-denial notice with an appeal deadline.
    4. D. Send the applicant a privacy notice only when information is shared.

    Answer: A

    Explanation: "requires you to provide a notice of the adverse action to the consumer." The report contributed to a less favorable insurance decision, so the insurer owes an FCRA adverse-action notice; a routine billing or privacy notice does not satisfy that trigger.

    Reference: FTC, Consumer Reports: What Insurers Need to Know — FCRA adverse action notice section

  3. 3A clinic stores an oxygen cylinder beside an ignition source, increasing the chance of an accidental injury claim. In risk terminology, what is the unsafe storage condition?

    1. A. A peril that directly causes the injury.
    2. B. A financial loss after the injury.
    3. C. A claim submitted for the injury.
    4. D. A hazard that increases loss likelihood.

    Answer: D

    Explanation: "Hazard - circumstance which tends to increase the probability or severity of a loss." Unsafe storage changes the chance of injury; the resulting accident would be the peril and the injury expense a loss.

    Reference: NAIC, Glossary of Insurance Terms — Glossary, Hazard

  4. 4A health application presents a risk the insurer has not yet accepted. Which business function decides whether to accept it, how to classify it, and what rate to charge?

    1. A. Claims adjudication of the applicant's loss.
    2. B. Utilization review of the applicant's care.
    3. C. Underwriting of the proposed insurance risk.
    4. D. Policy servicing after the policy is issued.

    Answer: C

    Explanation: "determines whether the insurer will accept the risk or not, classifies those accepted and determines the appropriate rate" defines underwriting. Claims, utilization review, and servicing address later or different decisions.

    Reference: NAIC, Glossary of Insurance Terms — Glossary, Underwriting

  5. 5A nonfraudulent misstatement on an individual disability application is discovered more than two years after issue. The later disability began after those two years. May the insurer use that misstatement to deny this later claim?

    1. A. Yes, whenever the insurer can prove the original statement was inaccurate.
    2. B. No, the specified two-year defense limit bars that nonfraudulent ground.
    3. C. Yes, if the insured received treatment during the first policy year.
    4. D. No, because all application statements become irrelevant at delivery.

    Answer: B

    Explanation: "After two years from the date of issue of this policy no misstatements, except fraudulent misstatements" may be used to void or deny the later loss. The question excludes fraud and places the disability after the two-year period.

    Reference: Arizona Revised Statutes § 20-1346 — A.R.S. § 20-1346(A)(a)

  6. 6A surgeon cannot perform the duties of surgery after an injury but can perform another job for which the surgeon is qualified. Which total-disability definition could still treat the surgeon as totally disabled?

    1. A. An own-occupation definition focused on the surgeon's regular duties.
    2. B. An any-occupation definition focused on all gainful qualified work.
    3. C. A presumptive-disability definition focused on specified severe losses.
    4. D. A recurrent-disability definition focused on return of an earlier injury.

    Answer: A

    Explanation: "Some may pay benefits if you are unable to perform the duties of your occupation" describes an own-occupation definition. An any-occupation definition can require inability to perform other gainful qualified work, which the scenario does not establish.

    Reference: NAIC, Simplifying the Complications of Disability Insurance — Definition of Disability

  7. 7A medical plan applies a $1,000 annual amount to covered services before it begins paying claims subject to that amount. What is this plan provision called?

    1. A. The annual deductible owed before plan payment.
    2. B. The premium paid to keep the coverage active.
    3. C. The copayment charged at each covered visit.
    4. D. The coinsurance percentage after plan payment.

    Answer: A

    Explanation: "before your plan begins to pay" is the defining timing of a deductible. A premium maintains coverage, while a copayment or coinsurance is another form of cost sharing.

    Reference: HealthCare.gov, Glossary of Health Coverage and Medical Terms — Glossary, Deductible

  8. 8Under an Arizona group disability policy issued to an employer, what document must the insurer furnish through the policyholder to summarize each covered employee's insurance and benefit payee?

    1. A. An individual certificate of insurance.
    2. B. The master group insurance policy.
    3. C. A group coverage enrollment form.
    4. D. An individual conversion application.

    Answer: A

    Explanation: Arizona law requires "an individual certificate setting forth in summary form a statement of the essential features of the insurance coverage" for delivery to each covered employee or member, including to whom benefits are payable. The master policy, enrollment form, and conversion application serve different functions.

    Reference: Arizona Revised Statutes § 20-1402 — A.R.S. § 20-1402(A)(2)

  9. 9A beneficiary using Original Medicare is admitted as an inpatient to a hospital. Which Medicare part generally helps cover that inpatient hospital care?

    1. A. Medicare Part A.
    2. B. Medicare Part B.
    3. C. Medicare Part D.
    4. D. Medigap Plan A.

    Answer: A

    Explanation: CMS states that "Part A helps cover inpatient care in hospitals" and certain skilled nursing facility care. Part B addresses medical services, Part D addresses prescription drugs, and Medigap Plan A supplements Original Medicare rather than serving as its hospital-insurance part.

    Reference: CMS, Medicare Program General Information — CMS, What is Medicare, Medicare Part A (Hospital Insurance)

  10. 10An employee receives disability payments from a plan funded equally by the employer and the employee with after-tax premiums. How is the benefit generally treated for federal income tax purposes?

    1. A. Only the portion attributable to the employer's payments is included in income.
    2. B. Only the portion attributable to the employee's payments is included in income.
    3. C. The entire benefit is excluded because the employee paid part of the premium.
    4. D. The entire benefit is included because the employer paid part of the premium.

    Answer: A

    Explanation: IRS Publication 525 says, "only the amount you receive that is due to your employer’s payments is reported as income" when both employer and employee pay. The employee-funded after-tax portion is generally excluded, so neither an all-taxable nor an all-excluded answer fits.

    Reference: IRS Publication 525 (2025) — IRS Publication 525, Sickness and Injury Benefits, Disability Pensions

Topics in this practice bank

These topics describe the available practice for Arizona Examination for Accident and Health or Sickness Insurance Producer. Review the examination outline and its sources for scope and allocation details.

  • Insurance Regulation
    • Licensing
    • Licensing / License application requirements (20-285)
    • Licensing / Number of exam attempts 20-284(H)
    • Licensing / Licensing eligibility/lawful presence (41-1080)
    • Licensing / Types of licensees
    • Licensing / Types of licensees / Producers (20-281(5), 286)
    • Licensing / Types of licensees / Nonresidents (20-281(11))
    • Licensing / Types of licensees / Life Settlement Broker (ARS 20-3202)
    • Licensing / Types of licensees / Business entities (20-281(1), 285(D, E), 290(B))
    • Licensing / Types of licensees / Temporary (20-294)
    • Licensing / Types of licensees / Vending machines (20-293)
    • Licensing / Lines of producer license authority (20-286, (A), 321, 331, 332, 411, 411.01, 1580, 1693.01, 2662)
    • Licensing / Fingerprinting requirements (20-142(E), 285(E), 286(C), 289(D))
    • Licensing / Assumed business name (20-297)
    • Licensing / Maintenance and duration
    • Licensing / Maintenance and duration / Expiration, surrender and renewal (20-289)
    • Licensing / Maintenance and duration / Inactive license status during military service (20-289.01)
    • Licensing / Maintenance and duration / Change of contact information (20-286(C))
    • Licensing / Maintenance and duration / Change of business information (20-286)(C))
    • Licensing / Maintenance and duration / Report of actions (20-301)
    • Licensing / Maintenance and duration / Continuing education (20-2902, 2903)
    • Licensing / Disciplinary actions
    • Licensing / Disciplinary actions / Denial, suspension, revocation or refusal to renew; civil penalties (20-295, 296)
    • Licensing / Disciplinary actions / Cease and desist order (20-292)
    • State regulation
    • State regulation / Acts constituting insurance transaction (20-106, 282, 401.01)
    • State regulation / Acts constituting insurance transaction (20-106, 282, 401.01) / Negotiate (20-281(10))
    • State regulation / Acts constituting insurance transaction (20-106, 282, 401.01) / Sell (20-281(14))
    • State regulation / Acts constituting insurance transaction (20-106, 282, 401.01) / Solicit (20-281(15))
    • State regulation / Payment of premiums (20-191)
    • State regulation / Certificate of authority (20-217(A))
    • State regulation / Identification of Producer (20-229)
    • State regulation / Producer regulation
    • State regulation / Producer regulation / Sharing commissions (20-298)
    • State regulation / Producer regulation / Place of business and records (20-157, 290; AZ Const Art 14 s 16)
    • State regulation / Unfair practices and frauds
    • State regulation / Unfair practices and frauds / Unfair trade practices (20-442)
    • State regulation / Unfair practices and frauds / Misrepresentation (20-443, 443.01, 447; Rule R20-6-801(D))
    • State regulation / Unfair practices and frauds / False or deceptive advertising (20-444)
    • State regulation / Unfair practices and frauds / Defamation of insurer (20-445)
    • State regulation / Unfair practices and frauds / Boycott, coercion or intimidation (20-446)
    • State regulation / Unfair practices and frauds / False financial statements (20-447)
    • State regulation / Unfair practices and frauds / Unfair discrimination (20-448)
    • State regulation / Unfair practices and frauds / Gender discrimination (Rule R20-6-207)
    • State regulation / Unfair practices and frauds / Rebating (20-451)
    • State regulation / Unfair practices and frauds / Prohibited inducements (20-452)
    • State regulation / Unfair practices and frauds / Fees (20-465)
    • State regulation / Unfair practices and frauds / Unfair claims settlement practices (20-461; Rule R20-6-801)
    • State regulation / Unfair practices and frauds / Claims payment (20-462)
    • State regulation / Unfair practices and frauds / Insurance fraud (20-463, 466–466.04)
    • Insurance information and privacy protection (20-2101–2122)
  • Federal Laws and Regulations
    • Fair Credit Reporting Act (15 USC 1681–1681d)
    • National Do Not Call List
    • Gramm-Leach-Bliley Act (20-2121; Public Law 106-102)
    • Prohibited Persons in Insurance (18 United States Code (USC) Sections 1033 and 1034) waiver
    • Affordable Care Act (45 CFR 144, 146, 147, 148, 150, 154, 155, 156, 157, 164 and 170; and 42 USC 300gg-300gg- 91)
    • CAN-SPAM Act of 2003 (15 USC 7701; 18 USC 1037)
    • Genetic Information Nondiscrimination Act (45 CFR Parts 144, 146, and 148; 45 CFR Parts 160 and 164; and 29 CFR Part 2590)
    • Mental Health Parity and Addiction Equity Act (45 CFR Parts 146 and 147)
    • Telemarketing Sales Rule (16 CFR 310; 15 USC 6101–6108; A.R.S. 44-1282)
  • General Insurance Concepts
    • Risk
    • Risk / Methods of Handling Risk (Avoidance, Retention, Sharing, Reduction, Transfer)
    • Risk / Elements of Insurable Risks
    • Risk / Definitions (Risk, Hazard, Peril, Loss)
    • Elements of a Contract
    • Elements of a Contract / Consideration
    • Elements of a Contract / Competent Parties
    • Elements of a Contract / Legal Purpose
    • Elements of a Contract / Offer
    • Elements of a Contract / Acceptance
    • Authority and Powers of Producers
    • Authority and Powers of Producers / Express
    • Authority and Powers of Producers / Implied
    • Authority and Powers of Producers / Apparent
    • Authority and Powers of Producers / The Law of Agency
    • Legal Interpretations Affecting Contracts
    • Legal Interpretations Affecting Contracts / Reasonable Expectations
    • Legal Interpretations Affecting Contracts / Indemnity
    • Legal Interpretations Affecting Contracts / Good Faith
    • Legal Interpretations Affecting Contracts / Fraud
    • Legal Interpretations Affecting Contracts / Warranties, Representations, Misrepresentations, and Concealment
  • Accident and Health Insurance Basics
    • Field Underwriting
    • Field Underwriting / Application Procedures
    • Field Underwriting / Disclosures and Privacy
    • Underwriting Requirements (Varies by Insurer)
    • Sources of Underwriting
    • Sources of Underwriting / Application
    • Sources of Underwriting / Producer's report
    • Sources of Underwriting / Medical information bureau (MIB)
    • Sources of Underwriting / Inspection report
    • Sources of Underwriting / Medical examination
    • Sources of Underwriting / Attending physician's report
    • Policy Delivery
    • Policy Delivery / Effective Date of Coverage
    • Policy Delivery / Policy Review
    • Policy Delivery / Premium Collection Methods (e.g., Electronic, Physical, EFT, ACH)
    • Policy Delivery / Statement of Good Health
    • Definitions of Perils
    • Definitions of Perils / Accidental Injury
    • Definitions of Perils / Sickness
    • Types of Losses and Benefits
    • Types of Losses and Benefits / Loss of Income from Disability (Short-Term/Long-Term Disability)
    • Types of Losses and Benefits / Medical Expense
    • Types of Losses and Benefits / Long-Term Care Expense
    • Classification of Risks
    • Classification of Risks / Preferred
    • Classification of Risks / Standard
    • Classification of Risks / Substandard
  • Individual Accident and Health Insurance Policy Provisions
    • Uniform Required Provisions
    • Uniform Required Provisions / Time Limit on Certain Defenses
    • Uniform Required Provisions / Grace Period
    • Uniform Required Provisions / Reinstatement
    • Uniform Required Provisions / Claim Forms
    • Uniform Required Provisions / Proof of Loss
    • Uniform Required Provisions / Time of Payment of Claims
    • Uniform Required Provisions / Physical Examinations and Autopsy
    • Uniform Required Provisions / Legal Actions
    • Uniform Required Provisions / Entire Contract
    • Uniform Required Provisions / Payment of Claims
    • Uniform Required Provisions / Change of Beneficiary
    • Uniform Required Provisions / Notice of Claim
    • Uniform Optional Provisions
    • Uniform Optional Provisions / Change of Occupation
    • Uniform Optional Provisions / Misstatement of Age/Sex
    • Uniform Optional Provisions / Illegal Occupation
    • Uniform Optional Provisions / Intoxicants, Narcotics, or Other Controlled Substances
    • Other General Provisions
    • Other General Provisions / Right to Examine/Free Look
    • Other General Provisions / Insuring Clause
    • Other General Provisions / Consideration Clause
    • Other General Provisions / Coinsurance
    • Other General Provisions / Probationary Period
    • Other General Provisions / Elimination Period
    • Other General Provisions / Exclusions
  • Disability Income and Related Insurance
    • Benefits Determination for Disability
    • Benefits Determination for Disability / Indemnity
    • Benefits Determination for Disability / Loss of Income
    • Qualifications of Disability
    • Qualifications of Disability / Total (Own Occupation, Any Occupation)
    • Qualifications of Disability / Partial
    • Qualifications of Disability / Permanent
    • Qualifications of Disability / Presumptive
    • Qualifications of Disability / Recurrent
    • Qualifications of Disability / Residual
    • Qualifications of Disability / Inability to Perform Duties
    • Qualifications of Disability / Occupational versus Non-Occupational
    • Individual Disability Income Insurance
    • Individual Disability Income Insurance / Basic Total Disability Plan
    • Individual Disability Income Insurance / Cost of Living Rider
    • Individual Disability Income Insurance / Future Increase Option Rider
    • Individual Disability Income Insurance / Change of Occupation
    • Individual Disability Income Insurance / Other Cash Benefits - (Accidental Death and Dismemberment (AD&D), Rehabilitation Benefit, Medical Reimbursement Benefit)
    • Individual Disability Income Insurance / Refund Provisions
    • Individual Disability Income Insurance / Exclusions
    • Individual Disability Income Insurance / Waiver of Premium
    • Individual Disability Income Insurance / Probationary Period
    • Individual Disability Income Insurance / Elimination Period
    • Individual Disability Income Insurance / Benefit Limits
    • Unique Aspects of Individual Disability Income Underwriting
    • Unique Aspects of Individual Disability Income Underwriting / Occupational Considerations
    • Unique Aspects of Individual Disability Income Underwriting / Benefit Limits
    • Unique Aspects of Individual Disability Income Underwriting / Policy Issuance Alternatives
    • Group Disability Income Insurance
    • Group Disability Income Insurance / Short-Term Disability
    • Group Disability Income Insurance / Long-Term Disability
    • Group Disability Income Insurance / Coordination of Benefits (Workers' Compensation Benefits and Social Insurance)
    • Group Disability Income Insurance / At-work benefits
    • Business Disability Income Insurance
    • Business Disability Income Insurance / Key Employee Disability Income
    • Business Disability Income Insurance / Disability Buy-Sell Policy
    • Business Disability Income Insurance / Business Overhead Expense
    • Social Security Disability Income
    • Social Security Disability Income / Qualification for Disability Benefits
    • Social Security Disability Income / Definition of Disability
    • Social Security Disability Income / Waiting Period
  • Medical Plans
    • Medical Plan Concepts
    • Medical Plan Concepts / Fee-for-Service
    • Medical Plan Concepts / Prepaid
    • Medical Plan Concepts / Specified disease/Dread disease insurance
    • Medical Plan Concepts / Comprehensive Coverage
    • Medical Plan Concepts / Dependent Coverage
    • Provisions and Clauses
    • Provisions and Clauses / Deductibles
    • Provisions and Clauses / Stop-Loss Provision
    • Provisions and Clauses / Impairment rider
    • Types of Medical Plans
    • Types of Medical Plans / Major Medical Insurance
    • Types of Medical Plans / Health Maintenance Organizations (HMOs)
    • Types of Medical Plans / Preferred Provider Organizations (PPOs)
    • Types of Medical Plans / Point-of-Service (POS) Plans
    • Cost Containment in Health Care Delivery
    • Cost Containment in Health Care Delivery / Managed Care
    • Cost Containment in Health Care Delivery / Preventive Care
    • Cost Containment in Health Care Delivery / Outpatient Benefits
    • Cost Containment in Health Care Delivery / Utilization Management
    • Cost Containment in Health Care Delivery / Preauthorization
    • Cost Containment in Health Care Delivery / Primary Care Physician
    • Limited Health Insurance Policies
    • Limited Health Insurance Policies / Accidental Death and Dismemberment
    • Limited Health Insurance Policies / Hospital indemnity
    • Limited Health Insurance Policies / Critical Illness/Dread Disease
    • Limited Health Insurance Policies / Vision Care
    • Limited Health Insurance Policies / Hearing
    • Limited Health Insurance Policies / Dental
    • Health Insurance Portability and Accountability Act (HIPAA)
    • Health Insurance Portability and Accountability Act (HIPAA) / Eligibility Requirements
    • Health Insurance Portability and Accountability Act (HIPAA) / Terms
    • Health Insurance Portability and Accountability Act (HIPAA) / Privacy
    • Health Insurance Portability and Accountability Act (HIPAA) / Portability
    • Affordable Care Act (ACA)
    • Affordable Care Act (ACA) / Eligibility
    • Affordable Care Act (ACA) / Dependent coverage
    • Affordable Care Act (ACA) / Essential health benefits
    • Affordable Care Act (ACA) / Levels of Coverage (Metallic Plans)
  • Group Health Insurance
    • Characteristics of Group Health Insurance
    • Characteristics of Group Health Insurance / Group Contract
    • Characteristics of Group Health Insurance / Certificate of Coverage
    • Characteristics of Group Health Insurance / Eligible Groups
    • Characteristics of Group Health Insurance / Contributory versus Non-Contributory
    • Employer Group Health Insurance
    • Employer Group Health Insurance / Underwriting Criteria
    • Employer Group Health Insurance / Eligibility for Insurance
    • Employer Group Health Insurance / Conversion of Coverage
    • Employer Group Health Insurance / Open Enrollment
    • Employer Group Health Insurance / Probation/Waiting Period
    • Employer Group Health Insurance / Coordination of Benefits
    • COBRA
    • COBRA / Eligibility
    • COBRA / Duration of Coverage
    • COBRA / Premium
  • Specialized Health Insurance for Qualified Individuals
    • Medicare
    • Medicare / Eligibility
    • Medicare / Part A
    • Medicare / Part B
    • Medicare / Part C
    • Medicare / Part D
    • Medicare Supplement Insurance
    • Medicare Supplement Insurance / Enrollment Periods
    • Medicare Supplement Insurance / Standardized Plan Benefits
    • Medicaid
    • Medicaid / Eligibility
    • Long-Term Care Policies
    • Long-Term Care Policies / Eligibility for Benefits (Activities of Daily Living)
    • Long-Term Care Policies / Benefit/Elimination Periods
    • Long-Term Care Policies / Levels of care (Skilled, Intermediate, Custodial)
  • Federal Tax Considerations for Health Insurance
    • Health Insurance Premiums and Benefits
    • Health Insurance Premiums and Benefits / Individual
    • Health Insurance Premiums and Benefits / Group
    • Health Insurance Premiums and Benefits / Disability Income (Individual and Group)
    • Health Insurance Premiums and Benefits / Business Disability Insurance
    • Consumer-Driven Health Plans
    • Consumer-Driven Health Plans / Health Savings Accounts (HSAs)
    • Consumer-Driven Health Plans / Health Savings Accounts (HSAs) / High Deductible Health Plans (HDHPs)
    • Consumer-Driven Health Plans / Health Reimbursement Accounts (HRAs)
    • Consumer-Driven Health Plans / Flexible Spending Accounts (FSAs)

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These are independent study questions, not actual examination items. For examination requirements and official information, view Arizona Examination for Accident and Health or Sickness Insurance Producer details.