ARIZONA LIFE INSURANCE 2026 EXAM TEST QUESTIONS
AND SOLUTIONS RATED A+
✔✔Facultative reinsurance - ✔✔Negotiated on a individual risk basis, offer and
acceptance must be on every reinsurance contract
✔✔Treaty reinsurance - ✔✔Automatic sharing of risk with the ceding company
✔✔Risk retention group - ✔✔A group of similar business engagement, insurance
consists of spreading all or a portion of liability exposure of its members, only providing
liability coverage. State regulated
✔✔Self insurance - ✔✔Means of retaining risks, some businesses set aside reserve
funds to cover losses and purchase excess insurance to cover large losses etc risk of
personal assets
✔✔Domestic insurers - ✔✔Company is a domestic insurer in the state in which it is
incorporated
✔✔Foreign insurers - ✔✔Licensed to conduct business in states other than one it is
incorporated with
✔✔Alien insurers - ✔✔Companies incorporated In a country other than the United
states
✔✔Authorized (admitted) - ✔✔Insurer that is entitled to transact insurance within the
state, complying with the law and satisfying all conditions
✔✔Unauthorized (non admitted) - ✔✔Insurer is not entitled to transact insurance within
the state
✔✔Independent insurance agents - ✔✔Sell the insurance of several insurance
companies but work for themselves
✔✔Exclusive or captive agents - ✔✔Represent only one company, career agents
working for career agencies
✔✔General agents or managing general agents - ✔✔Hire, train and supervise other
career agents within a specific geographic area
✔✔Direct writing companies - ✔✔Usually pay salaries too employees whose Job
function is to sell the company's insurance products
, ✔✔Producers - ✔✔May function as agents, representing the insurance company, or as
brokers, representing the potentially insured
✔✔Fair credit reporting act - ✔✔Regulates the collection of a personal information on
an applicant
✔✔Insurance code - ✔✔body of laws for insurance at the state level
✔✔Statues - ✔✔Body of law developed by the legislative branch of government
✔✔Rules and regulations - ✔✔Developed by the department of insurance to expand
upon statutory requirements and legislative intent
✔✔Public adjuster - ✔✔Represents the insured and assists or helps the insured settling
an insurance claim receives payment for giving advice to insurance matters
✔✔Transferring risk - ✔✔Treating risk by purchasing insurance
✔✔Commissioner superintendent, director of insurance duties - ✔✔Issue certificate of
authority
Make insurance laws
Examine books records and documents of insurer agent or broker
Approved policies sold within the state
✔✔Product makers conduct - ✔✔Conducting insurance business fairly and responsibly
✔✔Guaranty associations - ✔✔Organized to protect claimants policy holders annuitants
and creditors of financially impaired or insolvent insurers by providing services
✔✔Buyers guide - ✔✔Providing basic options and information about the insurance
policies
✔✔Policy summary - ✔✔Outline of coverage is a written statement describing the
elements of the policy being sold
✔✔Controlled business - ✔✔Coverage of insurance written on the life of producer
himself or such persons as relatives or co workers.
✔✔Misrepresentation - ✔✔Illustrating conducting or creating misleading statements
information or deceptive facts that are a lie
✔✔Twisting - ✔✔When a producer convinces and consumer to cancel the existing
policy in order to sell another one, usually from a different company
AND SOLUTIONS RATED A+
✔✔Facultative reinsurance - ✔✔Negotiated on a individual risk basis, offer and
acceptance must be on every reinsurance contract
✔✔Treaty reinsurance - ✔✔Automatic sharing of risk with the ceding company
✔✔Risk retention group - ✔✔A group of similar business engagement, insurance
consists of spreading all or a portion of liability exposure of its members, only providing
liability coverage. State regulated
✔✔Self insurance - ✔✔Means of retaining risks, some businesses set aside reserve
funds to cover losses and purchase excess insurance to cover large losses etc risk of
personal assets
✔✔Domestic insurers - ✔✔Company is a domestic insurer in the state in which it is
incorporated
✔✔Foreign insurers - ✔✔Licensed to conduct business in states other than one it is
incorporated with
✔✔Alien insurers - ✔✔Companies incorporated In a country other than the United
states
✔✔Authorized (admitted) - ✔✔Insurer that is entitled to transact insurance within the
state, complying with the law and satisfying all conditions
✔✔Unauthorized (non admitted) - ✔✔Insurer is not entitled to transact insurance within
the state
✔✔Independent insurance agents - ✔✔Sell the insurance of several insurance
companies but work for themselves
✔✔Exclusive or captive agents - ✔✔Represent only one company, career agents
working for career agencies
✔✔General agents or managing general agents - ✔✔Hire, train and supervise other
career agents within a specific geographic area
✔✔Direct writing companies - ✔✔Usually pay salaries too employees whose Job
function is to sell the company's insurance products
, ✔✔Producers - ✔✔May function as agents, representing the insurance company, or as
brokers, representing the potentially insured
✔✔Fair credit reporting act - ✔✔Regulates the collection of a personal information on
an applicant
✔✔Insurance code - ✔✔body of laws for insurance at the state level
✔✔Statues - ✔✔Body of law developed by the legislative branch of government
✔✔Rules and regulations - ✔✔Developed by the department of insurance to expand
upon statutory requirements and legislative intent
✔✔Public adjuster - ✔✔Represents the insured and assists or helps the insured settling
an insurance claim receives payment for giving advice to insurance matters
✔✔Transferring risk - ✔✔Treating risk by purchasing insurance
✔✔Commissioner superintendent, director of insurance duties - ✔✔Issue certificate of
authority
Make insurance laws
Examine books records and documents of insurer agent or broker
Approved policies sold within the state
✔✔Product makers conduct - ✔✔Conducting insurance business fairly and responsibly
✔✔Guaranty associations - ✔✔Organized to protect claimants policy holders annuitants
and creditors of financially impaired or insolvent insurers by providing services
✔✔Buyers guide - ✔✔Providing basic options and information about the insurance
policies
✔✔Policy summary - ✔✔Outline of coverage is a written statement describing the
elements of the policy being sold
✔✔Controlled business - ✔✔Coverage of insurance written on the life of producer
himself or such persons as relatives or co workers.
✔✔Misrepresentation - ✔✔Illustrating conducting or creating misleading statements
information or deceptive facts that are a lie
✔✔Twisting - ✔✔When a producer convinces and consumer to cancel the existing
policy in order to sell another one, usually from a different company
