ARIZONA LIFE INSURANCE CORE EXAM 2026 TEST
QUESTIONS AND SOLUTIONS RATED A+
✔✔Which of the following are generally NOT considered when underwriting group
insurance?
a.The nature of the group
b.The insureds' medical history
c.The group's past claim experience
d. The size of the group - ✔✔b. The insured's medical history
✔✔Death benefits payable to a beneficiary under a life insurance policy are generally
a.Subject to income taxation by the Federal Government.
b.Exempt from income taxation if over $10,000.
c.Not subject to income taxation by the Federal Government.
d.Exempt from income taxation if under $10,000. - ✔✔c.Not subject to income taxation
by the Federal Government.
✔✔Which of the following would describe a legal document which would dictate who
can buy a deceased partner's share of a business and for what amount? - ✔✔Buy-sell
agreement
✔✔Under the Fair Credit Reporting Act, individuals rejected for insurance due to
information contained in a consumer report
a.Must be advised that a copy of the report is available to anyone who requests it.
b.Are entitled to obtain a copy of the report from the party who ordered it.
c.Must be informed of the source of the report.
d.May sue the reporting agency in order to get inaccurate data corrected. - ✔✔c.Must
be informed of the source of the report.
✔✔Which of the following can surrender a deferred annuity contract? - ✔✔Only the
annuity owner
✔✔An insured has a Level Term Life Insurance policy that is guaranteed renewable and
also includes a re-entry provision. The re-entry provision would allow the insured to
renew the policy and
a.Pay a lower renewal premium without evidence of insurability.
b.Change the type of insurance by proving insurability.
c.Pay a lower renewal premium by proving insurability.
d.Change the type of insurance without evidence of insurability. - ✔✔c.Pay a lower
renewal premium by proving insurability.
✔✔The premium of a survivorship life policy compared with that of a joint life policy
would be
1
, Higher.
2
Half the amount.
3
As high.
4
Lower. - ✔✔Lower
✔✔An insurer has just asked an applicant to take an HIV test. How long does the
applicant have to decide whether or not to sign a consent form?
1
30 days
2
7 days
3
60 days
4
10 days - ✔✔10 days
✔✔Which of the following statements is TRUE concerning irrevocable beneficiaries?
1
They may be changed at any time.
2
They can be changed only with the written consent of that beneficiary.
3
They can never be changed.
4
They may be changed only on the anniversary date of the policy. - ✔✔They can be
changed only with the written consent of that beneficiary.
✔✔According to the NAIC Insurance Data Security Model Law, licensees are required
to report cybersecurity events to the state insurance department within what time period
of discovery?
1
24 hours
2
5 days
3
10 days
4
72 hours - ✔✔72 hours
✔✔A person requests that an insurance company quit sending him e-mail solicitations.
According to the law, the company has 10 days to stop e-mailing the complainant.
QUESTIONS AND SOLUTIONS RATED A+
✔✔Which of the following are generally NOT considered when underwriting group
insurance?
a.The nature of the group
b.The insureds' medical history
c.The group's past claim experience
d. The size of the group - ✔✔b. The insured's medical history
✔✔Death benefits payable to a beneficiary under a life insurance policy are generally
a.Subject to income taxation by the Federal Government.
b.Exempt from income taxation if over $10,000.
c.Not subject to income taxation by the Federal Government.
d.Exempt from income taxation if under $10,000. - ✔✔c.Not subject to income taxation
by the Federal Government.
✔✔Which of the following would describe a legal document which would dictate who
can buy a deceased partner's share of a business and for what amount? - ✔✔Buy-sell
agreement
✔✔Under the Fair Credit Reporting Act, individuals rejected for insurance due to
information contained in a consumer report
a.Must be advised that a copy of the report is available to anyone who requests it.
b.Are entitled to obtain a copy of the report from the party who ordered it.
c.Must be informed of the source of the report.
d.May sue the reporting agency in order to get inaccurate data corrected. - ✔✔c.Must
be informed of the source of the report.
✔✔Which of the following can surrender a deferred annuity contract? - ✔✔Only the
annuity owner
✔✔An insured has a Level Term Life Insurance policy that is guaranteed renewable and
also includes a re-entry provision. The re-entry provision would allow the insured to
renew the policy and
a.Pay a lower renewal premium without evidence of insurability.
b.Change the type of insurance by proving insurability.
c.Pay a lower renewal premium by proving insurability.
d.Change the type of insurance without evidence of insurability. - ✔✔c.Pay a lower
renewal premium by proving insurability.
✔✔The premium of a survivorship life policy compared with that of a joint life policy
would be
1
, Higher.
2
Half the amount.
3
As high.
4
Lower. - ✔✔Lower
✔✔An insurer has just asked an applicant to take an HIV test. How long does the
applicant have to decide whether or not to sign a consent form?
1
30 days
2
7 days
3
60 days
4
10 days - ✔✔10 days
✔✔Which of the following statements is TRUE concerning irrevocable beneficiaries?
1
They may be changed at any time.
2
They can be changed only with the written consent of that beneficiary.
3
They can never be changed.
4
They may be changed only on the anniversary date of the policy. - ✔✔They can be
changed only with the written consent of that beneficiary.
✔✔According to the NAIC Insurance Data Security Model Law, licensees are required
to report cybersecurity events to the state insurance department within what time period
of discovery?
1
24 hours
2
5 days
3
10 days
4
72 hours - ✔✔72 hours
✔✔A person requests that an insurance company quit sending him e-mail solicitations.
According to the law, the company has 10 days to stop e-mailing the complainant.
