Cheat sheet
Arizona Life & Health Cheat Sheet
Insurance Regulation
- 4% of exam
- Licensing DIFI Appointments CE Discipline
Federal Rules
- 3% of exam
- FCRA GLBA ACA Do Not Call 1033
General Concepts
- 7% of exam
- Risk Hazards Contracts Agency Authority
L&H Basics
- 17% of exam
- Insurable Interest Underwriting Needs Delivery Premiums
Life Products
- 9% of exam
- Term Whole Life Universal Life Variable Life Group Life
Life Provisions
- 15% of exam
- Beneficiaries Riders Nonforfeiture Loans Settlement
Annuities
- 7% of exam
- Immediate Deferred Fixed Indexed Payouts
Health Provisions
- 8% of exam
- Claims Grace Reinstatement Exclusions Proof
Disability Insurance
- 6% of exam
- Own Occupation Any Occupation Residual Elimination BOE
Medical Plans
- 11% of exam
- HMO PPO POS ACA HIPAA
Group Health
- 3% of exam
- COBRA Certificates Contributory Conversion Coordination
Seniors + LTC
- 5% of exam
- Medicare Medicaid Medigap ADLs LTC
Federal Tax
- 5% of exam
- LIFO FIFO MEC HSA HDHP
Quick Facts
- Exam Series 13-33
- License Life + A&H
- Body PSI / DIFI
- Items 150 items
- Time 2.5 hours
- Fee $59
- Pass 70%
- Attempts 4 per year
- Delivery Center or online
- CE 48 hours/4 years
Sell vs Solicit RE
Sell
- Exchange coverage
- Complete transaction
Solicit
- Urge purchase
- Attempt transaction
- Both need licensing
Exam Map RE
- 13-33 Combined AZ exam
- DIFI State regulator
- PSI Exam vendor
- 150 items Timed test
- 2.5 hours Time limit
- 70% Passing score
- $59 Exam fee
- Four attempts Annual limit
AZ Licensing RE
- Age 18 minimum
- Lawful presence Identity proof
- Fingerprints Background check
- NIPR License application
- Apply window One year
- Business entity Separate license
- Variable authority Life required
- Assumed name Report to DIFI
Producer Duties RE
- Sell Exchange insurance
- Solicit Urge purchase
- Negotiate Advise terms
- Premiums Fiduciary funds
- Records Keep available
- Change info Notify DIFI
- Report actions Disclose discipline
- CE Renewal education
Unfair Practices RE
- Misrepresentation False policy statement
- Twisting Misleading replacement
- Churning Commission replacement
- Rebating Illegal inducement
- Defamation False insurer attack
- Boycott Coercive refusal
- Discrimination Unfair class treatment
- Fraud Intentional deception
Federal Law FE
- FCRA Consumer reports
- GLBA Privacy notices
- HIPAA Health privacy
- ACA Health reforms
- GINA Genetic limits
- 1033 Felony consent
- DNC Call restrictions
- CAN-SPAM Email rules
Contract Keys CO
- O C C L forms valid contracts.
- Offer Consideration Competent parties Legal purpose
Express vs Apparent CO
Express
- Written power
- Contract granted
Apparent
- Public impression
- Insurer allowed
- Source controls authority
Risk + Contracts CO
- Risk Chance of loss
- Peril Loss cause
- Hazard Increases loss
- Indemnity Restore financially
- Aleatory Unequal exchange
- Adhesion Insurer drafted
- Unilateral One enforceable promise
- Conditional Duties required
Authority EIA CO
- Express is stated; implied is needed.
- Express Implied Apparent
Authority + Agency CO
- Express Written authority
- Implied Necessary authority
- Apparent Public appearance
- Principal Insurer
- Agent Producer
- Fiduciary Trust duty
- Waiver Known right surrendered
- Estoppel Blocked denial
Underwriting Basics BA
- Application Primary source
- Producer report Field notes
- MIB Fraud database
- Inspection Consumer report
- Medical exam Health evidence
- APS Physician report
- Preferred Best risk
- Substandard Extra risk
Needs + Premiums BA
- Insurable interest Loss stake
- Human life Earnings value
- Needs approach Expense target
- Key person Business protection
- Buy-sell Ownership transfer
- Mortality Death cost
- Interest Investment credit
- Expense Insurer overhead
Term vs Whole LI
Term
- Temporary
- No cash value
Whole
- Permanent
- Cash value
- Need duration decides
Life Product Picker LI
- Temporary need → Term ( Low premium )
- Mortgage balance → Decreasing term ( Declining face )
- Lifetime guarantee → Whole life ( Fixed premium )
- Flexible premium → Universal life ( Adjustable )
- Market risk wanted → Variable life ( Securities )
- Two insureds → Joint life ( First death )
- Estate liquidity → Survivorship ( Second death )
- Employee class → Group life ( Master policy )
Life Products LI
- Level term Level face
- Decreasing term Declining face
- Whole life Permanent fixed
- Limited pay Short premium period
- Universal life Flexible premium
- Variable life Separate accounts
- Indexed UL Index crediting
- Group life Master policy
Policy Roles LI
- Owner Controls rights
- Insured Covered life
- Applicant Requests policy
- Beneficiary Receives proceeds
- Primary First paid
- Contingent Backup paid
- Revocable Change allowed
- Irrevocable Consent required
Life Provisions LI
- Free look Refund review
- Grace period Late-pay window
- Incontestability Challenge limit
- Reinstatement Restore lapse
- Misstatement Benefit adjustment
- Assignment Transfer rights
- Policy loan Borrow cash
- Entire contract Policy + application
Riders + Options LI
- Waiver Disability premium waiver
- ADB Accidental death extra
- GIR Future purchase
- Accelerated Early death benefit
- Cash surrender Take cash
- Extended term Same face temporary
- Reduced paid-up Smaller permanent
- Dividend Participating return
Annuity Parties AN
- Owner controls; annuitant measures.
- Owner Annuitant Beneficiary
Owner vs Annuitant AN
Owner
- Controls contract
- Names beneficiary
Annuitant
- Measuring life
- May lack control
- Control follows owner
Annuity Picker AN
- Income now → Immediate ( Payout soon )
- Income later → Deferred ( Accumulation first )
- Principal safety → Fixed ( Guaranteed )
- Market upside → Indexed ( Formula )
- Investment control → Variable ( Separate accounts )
- Highest payment → Life only ( No refund )
- Protect survivor → Joint survivor ( Two lives )
- Minimum payout → Period certain ( Guaranteed term )
Annuity Map AN
- Owner Controls contract
- Annuitant Measuring life
- Beneficiary Receives remainder
- Accumulation Pay-in phase
- Annuitization Payout phase
- Immediate Pays soon
- Deferred Pays later
- GMWB Withdrawal guarantee
Annuity Types AN
- Fixed Guaranteed crediting
- Variable Separate accounts
- Indexed Index formula
- Single premium One payment
- Flexible premium Multiple payments
- Life only Highest lifetime
- Period certain Guaranteed period
- Joint survivor Two lives
Claim Flow HE
- Notice, forms, proof, payment, action.
- Notice Forms Proof Payment Legal action
Health Provisions HE
- Claim forms Insurer supplies
- Proof loss Claim evidence
- Time payment Pay promptly
- Legal actions Suit timing
- Reinstatement Restore coverage
- Change occupation Risk adjustment
- Illegal occupation Claim exclusion
- Intoxicants Claim exclusion
Own vs Any DI
Own occupation
- Cannot do job
- Stronger definition
Any occupation
- Cannot work anywhere
- Stricter claim
- Any is harder
Disability Map DI
- Own occupation Own job disabled
- Any occupation Any work disabled
- Partial Limited duties
- Residual Income loss
- Presumptive Automatic total
- Elimination Waiting period
- Benefit period Payment duration
- BOE Business expenses
HMO vs PPO ME
HMO
- Gatekeeper
- Network focus
PPO
- Provider choice
- Higher flexibility
- Flexibility costs more
Health Plan Picker ME
- Lowest network cost → HMO ( Gatekeeper )
- Provider flexibility → PPO ( Out-network )
- Referral blend → POS ( Hybrid )
- Broad expense risk → Major medical ( Comprehensive )
- High deductible → HDHP ( HSA eligible )
- Lost earnings → Disability income ( Income )
- Custodial care → LTC ( ADLs )
- Medicare gaps → Medigap ( Supplement )
Medical Plans ME
- HMO Gatekeeper network
- PPO Preferred network
- POS Referral blend
- Major medical Broad coverage
- Deductible Before plan pays
- Coinsurance Cost percentage
- Stop-loss OOP cap
- Preauthorization Advance approval
ACA + HIPAA ME
- EHB Essential benefits
- Dependent age To 26
- Metal tiers Cost sharing
- Preexisting ACA limited
- Portability Coverage movement
- Privacy Health information
- HSA Tax savings
- HDHP HSA plan
Group Health GR
- Master policy Employer owns
- Certificate Member evidence
- Contributory Employee pays
- Noncontributory Employer pays
- COBRA Continuation rights
- Conversion Individual switch
- Open enrollment Choice window
- Coordination Primary order
Medicare ABCD SE
- A hospital, B medical, C advantage, D drugs.
- Hospital Medical Advantage Drugs
Medicare vs Medicaid SE
Medicare
- Age/disability
- Federal program
Medicaid
- Need based
- State/federal
- Eligibility differs
Medicare + LTC SE
- Part A Hospital insurance
- Part B Medical insurance
- Part C Advantage plans
- Part D Drug coverage
- Medigap Supplement gaps
- Medicaid Need-based aid
- ADLs Care triggers
- Custodial Daily assistance
HSA vs FSA TA
HSA
- HDHP required
- Portable balance
FSA
- Employer plan
- Use-or-lose
- HSA travels
Tax + Accounts TA
- LIFO Gain first
- FIFO Basis first
- MEC Overfunded life
- 1035 Tax-free exchange
- HSA Triple tax
- HRA Employer funded
- FSA Use-or-lose
- HDHP High deductible
Common Traps
Replacement Trap
- Replacement disclosure ≠ Not casual comparison
Authority Trap
- Apparent authority ≠ Not written power
Free Look Trap
- Refund review ≠ Not grace period
Annuity Trap
- Annuitant measures ≠ Owner controls
Disability Trap
- Elimination waits ≠ Probation screens
Tax Trap
- MEC loses loans ≠ Death benefit still tax-free
Guaranty Trap
- Safety net ≠ Not sales pitch
COBRA Trap
- Continuation right ≠ Not conversion policy
Last Minute
- 1. 13-33 = 150 items
- 2. Four failures trigger wait
- 3. Apply within one year
- 4. DIFI regulates Arizona insurance
- 5. Premiums are fiduciary funds
- 6. Rebating is prohibited
- 7. Twisting uses deception
- 8. Whole life builds cash
- 9. Annuitant measures payout
- 10. HMO uses gatekeeper
- 11. LTC trigger = ADLs
- 12. HSA requires HDHP