ARIZONA LIFE INSURANCE COMPREHENSIVE EXAM 2026
QUESTIONS AND SOLUTIONS RATED A+
✔✔The insurance coverage in a variable life insurance policy may vary based on the
value of
the AM Best rating the company has received
its underlying investments
the consumer price index
the total premiums paid - ✔✔its underlying investments
✔✔Which of the following could be a future use of the cash value that builds in a
recently-purchased whole life insurance policy?
Convert the cash value to a paid-up term policy
Gives policyowner ability to borrow against funds within two years
Increases the policy's face amount
Provide supplemental income in 35 years - ✔✔Provide supplemental income in 35
years
✔✔An agent's authority to bind an insurer to an insurance contract may be granted in
the
agent's contract and the insurance company's appointment
agent's license and insurance
company's certificate of authority
buyer's guide and policy summary
state guaranty association - ✔✔agent's contract and the insurance company's
appointment
✔✔An annuity's accumulation period may
continue after the purchase payments stop
continue after the benefit payments start
,continue after the annuitant dies
continue after the annuity has been surrendered - ✔✔continue after the purchase
payments stop
✔✔When would evidence of insurability be required for a person already covered with a
variable universal life policy?
When the premium is increased
When the policy has renewed
When the death benefit is increased
When policy is being converted to permanent coverage - ✔✔When the death benefit is
increased
✔✔What is considered the collateral on a life insurance policy loan?
No collateral is needed
The policy's cash value
The policy's face value
The equity in a policyowner's home - ✔✔The policy's cash value
✔✔What is the face amount of a $50,000 graded death benefit life insurance policy
when the policy is issued?
$0
$50,000
Under $50,000 initially, but decreases annually over time
Under $50,000 initially, but increases over time - ✔✔Under $50,000 initially, but
increases over time
✔✔Under the Law of Agency, the principal is considered to be
the producer
the insurer
, the plan administrator
the insured - ✔✔the insurer
✔✔Which would be described as a beneficiary designation by class?
Children of the insured
Estate of the insured
Tertiary beneficiary
A specific named beneficiary - ✔✔Children of the insured
✔✔Which of these policies is considered a whole life policy?
Credit life
Single premium life
Renewable life
Convertible life - ✔✔Single premium life
✔✔An insurance policy that can also be classified as a securities product is called
variable life
modified life
universal life
a Modified Endowment Contract - ✔✔variable life
✔✔How does a continuous premium whole life policy differ from a limited payment
whole life policy?
The time period in which premiums will be paid
The availability of cash value loans
The availability of nonforfeiture options
The settlement options - ✔✔The time period in which premiums will be paid
QUESTIONS AND SOLUTIONS RATED A+
✔✔The insurance coverage in a variable life insurance policy may vary based on the
value of
the AM Best rating the company has received
its underlying investments
the consumer price index
the total premiums paid - ✔✔its underlying investments
✔✔Which of the following could be a future use of the cash value that builds in a
recently-purchased whole life insurance policy?
Convert the cash value to a paid-up term policy
Gives policyowner ability to borrow against funds within two years
Increases the policy's face amount
Provide supplemental income in 35 years - ✔✔Provide supplemental income in 35
years
✔✔An agent's authority to bind an insurer to an insurance contract may be granted in
the
agent's contract and the insurance company's appointment
agent's license and insurance
company's certificate of authority
buyer's guide and policy summary
state guaranty association - ✔✔agent's contract and the insurance company's
appointment
✔✔An annuity's accumulation period may
continue after the purchase payments stop
continue after the benefit payments start
,continue after the annuitant dies
continue after the annuity has been surrendered - ✔✔continue after the purchase
payments stop
✔✔When would evidence of insurability be required for a person already covered with a
variable universal life policy?
When the premium is increased
When the policy has renewed
When the death benefit is increased
When policy is being converted to permanent coverage - ✔✔When the death benefit is
increased
✔✔What is considered the collateral on a life insurance policy loan?
No collateral is needed
The policy's cash value
The policy's face value
The equity in a policyowner's home - ✔✔The policy's cash value
✔✔What is the face amount of a $50,000 graded death benefit life insurance policy
when the policy is issued?
$0
$50,000
Under $50,000 initially, but decreases annually over time
Under $50,000 initially, but increases over time - ✔✔Under $50,000 initially, but
increases over time
✔✔Under the Law of Agency, the principal is considered to be
the producer
the insurer
, the plan administrator
the insured - ✔✔the insurer
✔✔Which would be described as a beneficiary designation by class?
Children of the insured
Estate of the insured
Tertiary beneficiary
A specific named beneficiary - ✔✔Children of the insured
✔✔Which of these policies is considered a whole life policy?
Credit life
Single premium life
Renewable life
Convertible life - ✔✔Single premium life
✔✔An insurance policy that can also be classified as a securities product is called
variable life
modified life
universal life
a Modified Endowment Contract - ✔✔variable life
✔✔How does a continuous premium whole life policy differ from a limited payment
whole life policy?
The time period in which premiums will be paid
The availability of cash value loans
The availability of nonforfeiture options
The settlement options - ✔✔The time period in which premiums will be paid
