Arizona Life Insurance Exam Questions and Answers (Latest Update 2025). Accurate Test.

Arizona Life Insurance Exam Questions and Answers (Latest Update 2025). Accurate Test. a whole life policy that provides a choice of dividend options include the following statement about dividends they accrue at a guaranteed rate they are deferred for one year they are not guaranteed they are guaranteed after the first year - CORRECT ANSthey are not guaranteed When there is a named beneficiary on a life insurance policy, the death benefits 1. are directed to a trustee if the insured has any outstanding debts 2. are paid directly to the insured`s creditors, with any remaining balance forwarded to the beneficiary 3. are paid directly to the beneficiary, minus any debt claims by the insured`s creditors 4. are paid directly to the beneficiary without interference from the insured`s creditors - CORRECT ANSare paid directly to the beneficiary without interference from the insured`s creditors What determines how much an annuitant is paid for a variable annuity 1. varies according to how many outstanding annuitant is paid for a variable annuity 2. payments fluctuate as annuitant gets older 3. the market value variations of the securities backing it 4. varies according to the insurers investments in its general account - - CORRECT ANSthe market value variations of the securities backing it a terminated employee has how many days upon termination to convert group life insurance coverage to an individual policy 10 days 15 days 30 days 31 days - CORRECT ANS31 days Rick owns a variable universal life insurance policy and chooses a variable death benefit option. what will typically happen to the death benefit as a result of this section 1. remain the same 2 decrease but never increase 3 increase but never decrease 4 fluctuate with changes in the cash amount - CORRECT ANSfluctuate with changes in the cash amount the policy provision that permits an employee to change from group life insurance to an individual policy is called 1 assignment provision 2 conversion provision 3 certificate provision 4 modification provision - CORRECT ANSconversion provision when the deferred annuity is surrendered, who mustsign the authorization to do so owner annuitant and beneficiary annuitant all parties involved - CORRECT ANSowner Which of the following is NOT a valid contract exchange? 1. an annuity exchanged for a life insurance policy 2 an annuity exchanged for another annuity 3 a life insurance policy exchanged for another life insurance policy 4 a life insurance policy exchanged for another annuity - CORRECT ANS an annuity exchanged for a life insurance policy which of these statementsregarding the extended term insurance nonforfeiture option in a life policy is accurate evidence of insurability is required coverage remains until death of the insured the premium to purchase the coverage comes from the policy`s cash value cash value will continue to grow - CORRECT ANSthe premium to purchase the coverage comes from the policy`s cash value a life insurance policy that includes a return of premium rider will pay the beneficiary how much upon the insured death total premiums paid plus the policy face amount face amount plus interest interest acquired plus total premiums paid