ARIZONA LIFE INSURANCE EXAM
WITH CORRECT ANSWERS
a2whole2life2policy2that2provides2a2choice2of2dividend2options2include2th
e2following2statement2about2dividends
they2accrue2at2a2guaranteed2rate
they2are2deferred2for2one2year2
they2are2not2guaranteed
they2are2guaranteed2after2the2first2year2-2Ans--they2are2not2guaranteed
When2there2is2a2named2beneficiary2on2a2life2insurance2policy,2the2death
2benefits
1.2are2directed2to2a2trustee2if2the2insured2has2any2outstanding2debts2
2.2are2paid2directly2to2the2insured`s2creditors,2with2any2remaining2balan
ce2forwarded2to2the2beneficiary2
3.2are2paid2directly2to2the2beneficiary,2minus2any2debt2claims2by2the2ins
ured`s2creditors2
4.2are2paid2directly2to2the2beneficiary2without2interference2from2the2insu
red`s2creditors2-2Ans--
are2paid2directly2to2the2beneficiary2without2interference2from2the2insure
d`s2creditors
What2determines2how2much2an2annuitant2is2paid2for2a2variable2annuity
1.2varies2according2to2how2many2outstanding2annuitant2is2paid2for2a2var
iable2annuity
,2.2payments2fluctuate2as2annuitant2gets2older2
3.2the2market2value2variations2of2the2securities2backing2it
4.2varies2according2to2the2insurers2investments2in2its2general2account2-
2Ans--the2market2value2variations2of2the2securities2backing2it
a2terminated2employee2has2how2many2days2upon2termination2to2conve
rt2group2life2insurance2coverage2to2an2individual2policy2
102days2
152days
302days2
312days2-2Ans--312days
Rick2owns2a2variable2universal2life2insurance2policy2and2chooses2a2vari
able2death2benefit2option.2what2will2typically2happen2to2the2death2benefi
t2as2a2result2of2this2section2
1.2remain2the2same2
22decrease2but2never2increase2
32increase2but2never2decrease2
42fluctuate2with2changes2in2the2cash2amount2-2Ans--
fluctuate2with2changes2in2the2cash2amount
the2policy2provision2that2permits2an2employee2to2change2from2group2life
2insurance2to2an2individual2policy 2is2called2
12assignment2provision
,22conversion2provision2
32certificate2provision2
42modification2provision2-2Ans--conversion2provision
when2the2deferred2annuity2is2surrendered,2who2must2sign2the2authoriza
tion2to2do2so2
owner2
annuitant2and2beneficiary
annuitant2
all2parties2involved2-2Ans--owner
Which2of2the2following2is2NOT2a2valid2contract2exchange?2
1.2an2annuity2exchanged2for2a2life2insurance2policy2
22an2annuity2exchanged2for2another2annuity2
32a2life2insurance2policy2exchanged2for2another2life2insurance2policy2
42a2life2insurance2policy2exchanged2for2another2annuity2-2Ans--
an2annuity2exchanged2for2a2life2insurance2policy
which2of2these2statements2regarding2the2extended2term2insurance2nonf
orfeiture2option2in2a2life2policy2is2accurate2
evidence2of2insurability2is2required2
coverage2remains2until2death2of2the2insured
the2premium2to2purchase2the2coverage2comes2from2the2policy`s2cash2v
alue2
, cash2value2will2continue2to2grow2-2Ans--
the2premium2to2purchase2the2coverage2comes2from2the2policy`s2cash2v
alue
a2life2insurance2policy2that2includes2a2return2of2premium2rider2will2pay2th
e2beneficiary2how2much2upon2the2insured2death
total2premiums2paid2plus2the2policy2face2amount2
face2amount2plus2interest2
interest2acquired2plus2total2premiums2paid2
face2amount2minus2any2outstanding2loan2balances2-2Ans--
total2premiums2paid2plus2the2policy2face2amount
which2of2these2is2NOT2considered2the2responsibility2of2a2producer2durin
g2the2underwriting2process
collecting2additional2medical2information2if2needed2
promptly2sending2the2completed2application2to2the2insurance2company2
forwarding2any2material2personal2observations2to2the2insurer2
selecting2the2final2approval2date2-2Ans--
selecting2the2final2approval2date
which2of2the2following2is2NOT2guaranteed2in2a2whole2life2policy2
settlement2options2
nonforfeiture2options2
dividend2scale2
WITH CORRECT ANSWERS
a2whole2life2policy2that2provides2a2choice2of2dividend2options2include2th
e2following2statement2about2dividends
they2accrue2at2a2guaranteed2rate
they2are2deferred2for2one2year2
they2are2not2guaranteed
they2are2guaranteed2after2the2first2year2-2Ans--they2are2not2guaranteed
When2there2is2a2named2beneficiary2on2a2life2insurance2policy,2the2death
2benefits
1.2are2directed2to2a2trustee2if2the2insured2has2any2outstanding2debts2
2.2are2paid2directly2to2the2insured`s2creditors,2with2any2remaining2balan
ce2forwarded2to2the2beneficiary2
3.2are2paid2directly2to2the2beneficiary,2minus2any2debt2claims2by2the2ins
ured`s2creditors2
4.2are2paid2directly2to2the2beneficiary2without2interference2from2the2insu
red`s2creditors2-2Ans--
are2paid2directly2to2the2beneficiary2without2interference2from2the2insure
d`s2creditors
What2determines2how2much2an2annuitant2is2paid2for2a2variable2annuity
1.2varies2according2to2how2many2outstanding2annuitant2is2paid2for2a2var
iable2annuity
,2.2payments2fluctuate2as2annuitant2gets2older2
3.2the2market2value2variations2of2the2securities2backing2it
4.2varies2according2to2the2insurers2investments2in2its2general2account2-
2Ans--the2market2value2variations2of2the2securities2backing2it
a2terminated2employee2has2how2many2days2upon2termination2to2conve
rt2group2life2insurance2coverage2to2an2individual2policy2
102days2
152days
302days2
312days2-2Ans--312days
Rick2owns2a2variable2universal2life2insurance2policy2and2chooses2a2vari
able2death2benefit2option.2what2will2typically2happen2to2the2death2benefi
t2as2a2result2of2this2section2
1.2remain2the2same2
22decrease2but2never2increase2
32increase2but2never2decrease2
42fluctuate2with2changes2in2the2cash2amount2-2Ans--
fluctuate2with2changes2in2the2cash2amount
the2policy2provision2that2permits2an2employee2to2change2from2group2life
2insurance2to2an2individual2policy 2is2called2
12assignment2provision
,22conversion2provision2
32certificate2provision2
42modification2provision2-2Ans--conversion2provision
when2the2deferred2annuity2is2surrendered,2who2must2sign2the2authoriza
tion2to2do2so2
owner2
annuitant2and2beneficiary
annuitant2
all2parties2involved2-2Ans--owner
Which2of2the2following2is2NOT2a2valid2contract2exchange?2
1.2an2annuity2exchanged2for2a2life2insurance2policy2
22an2annuity2exchanged2for2another2annuity2
32a2life2insurance2policy2exchanged2for2another2life2insurance2policy2
42a2life2insurance2policy2exchanged2for2another2annuity2-2Ans--
an2annuity2exchanged2for2a2life2insurance2policy
which2of2these2statements2regarding2the2extended2term2insurance2nonf
orfeiture2option2in2a2life2policy2is2accurate2
evidence2of2insurability2is2required2
coverage2remains2until2death2of2the2insured
the2premium2to2purchase2the2coverage2comes2from2the2policy`s2cash2v
alue2
, cash2value2will2continue2to2grow2-2Ans--
the2premium2to2purchase2the2coverage2comes2from2the2policy`s2cash2v
alue
a2life2insurance2policy2that2includes2a2return2of2premium2rider2will2pay2th
e2beneficiary2how2much2upon2the2insured2death
total2premiums2paid2plus2the2policy2face2amount2
face2amount2plus2interest2
interest2acquired2plus2total2premiums2paid2
face2amount2minus2any2outstanding2loan2balances2-2Ans--
total2premiums2paid2plus2the2policy2face2amount
which2of2these2is2NOT2considered2the2responsibility2of2a2producer2durin
g2the2underwriting2process
collecting2additional2medical2information2if2needed2
promptly2sending2the2completed2application2to2the2insurance2company2
forwarding2any2material2personal2observations2to2the2insurer2
selecting2the2final2approval2date2-2Ans--
selecting2the2final2approval2date
which2of2the2following2is2NOT2guaranteed2in2a2whole2life2policy2
settlement2options2
nonforfeiture2options2
dividend2scale2
