ARIZONA INSURANCE LICENSE EXAM 2026
WITH QUESTIONS AND ANSWERS||
GUARANTEED PASS
What would be a valid reason for nailing a trust as the beneficiary of a life
insurance policy as opposed to naming an individual? - ANSWER-Management
of proceeds would be provided
A life insurance policy's contingent beneficiary is the - ANSWER-Person who
reserves the death benefits if the primary beneficiary dies before the insured
Which tax cost is normally associated with death? - ANSWER-Federal Estate
Tax
Which settlement option makes minimum guaranteed dollar payments over a
stated number of years? - ANSWER-Fixed-Period
When a policy loan is requested by a policyowner and it requires the consent of
the beneficiary, what kind of beneficiary designation is this? - ANSWER-
Irrevocable Beneficiary
Which statement regarding a fixed period settlement option is correct? -
ANSWER-The installment payment amount is determine by the total number of
installments
,Which life insurance settlement option pays a stated monthly benefit until both
principal and interest are exhausted? - ANSWER-Fixed amount installment
option
An insured may be required to sign which document at policy delivery to ensure
there has not been any adverse medical conditions since the time of the
application? - ANSWER-Good health statement
At policy delivery, a good health statement may need to be signed by the
insured to ensure there has NOT been any adverse medical conditions since the
time of application.
Which report contains information regarding an individual's general reputation
and credit standing? - ANSWER-Consumer Report
Long-term care policies normally cover expenses associated with? - ANSWER-
Nursing homes
When dealing with long-term care coverage, which of the following are
classified as ADLs? - ANSWER-Eating, bathing, dressing, and mobility
Custodial care is normally covered under what? - ANSWER-Long term care
insurance
Medicare Part B excess charges are covered by what? - ANSWER-Medicare
supplemental insurance
Bathing, eating and transferring are all types of what? - ANSWER-Activities of
daily living
,Emergency health care coverage for Medicare enrollees traveling abroad is
what? - ANSWER-Medicare supplement additional benefit
The policy provision that permits an employee to change from group life
coverage to an individual life policy is called the...? - ANSWER-Conversion
Provision
Why do insurers require a minimum number of employees participate in a group
insurance plan? - ANSWER-Minimize adverse selection
What is the insurance contract that identifies individuals by relationship to a
specific organization? - ANSWER-Group Insurance
Group life insurance is typically issued as what? - ANSWER-Level Term
Insurance
Which statement regarding the certificate of insurance is accurate? - ANSWER-
It indicates evidence of an employee's insurance coverage
Any employee insured under a group life insurance plan is normally...? -
ANSWER-Covered with term life insurance
The conversion option for group term insurance may be exercised by an
employee...? - ANSWER-Within 31 days of terminated employment
What are premiums for group credit life insurance based on? - ANSWER-Flat
rate unrelated to the borrower's age
, Is an employer pays for accidental death and dismemberment insurance for its
employees, the amount paid by the employer is generally what? - ANSWER-
Tax deductible to the business
A terminally I'll policyowner decides to sell his life insurance policy at a
discount to help support his family. This sale is called what? - ANSWER-
Viatical Settlement
Kevin has an existing life insurance policy and assigns it to another insurer for a
new contract. How would this transaction be treated for tax purposes? -
ANSWER-As a Section 1035 exchange
What effect does interest income have upon insurance premiums? - ANSWER-
Decreases Premium
How long do most states allow an insurance company to delay the payment of a
cash surrender under the Delayed Payment provision? - ANSWER-6 months
Which tax is normally associated with an individuals death? - ANSWER-
Federal Estate Tax
When there is a name beneficiary on a life insurance policy, the death benefits
are what? - ANSWER-Are paid directly to the beneficiary without the
interference from the insured's creditors
Which of these occupancies could improve an insurers ability to reduce
premiums? - ANSWER-Rate of earnings on investments increase
When premiums are determined, one factor would be the expenses of the...? -
ANSWER-Insurer
WITH QUESTIONS AND ANSWERS||
GUARANTEED PASS
What would be a valid reason for nailing a trust as the beneficiary of a life
insurance policy as opposed to naming an individual? - ANSWER-Management
of proceeds would be provided
A life insurance policy's contingent beneficiary is the - ANSWER-Person who
reserves the death benefits if the primary beneficiary dies before the insured
Which tax cost is normally associated with death? - ANSWER-Federal Estate
Tax
Which settlement option makes minimum guaranteed dollar payments over a
stated number of years? - ANSWER-Fixed-Period
When a policy loan is requested by a policyowner and it requires the consent of
the beneficiary, what kind of beneficiary designation is this? - ANSWER-
Irrevocable Beneficiary
Which statement regarding a fixed period settlement option is correct? -
ANSWER-The installment payment amount is determine by the total number of
installments
,Which life insurance settlement option pays a stated monthly benefit until both
principal and interest are exhausted? - ANSWER-Fixed amount installment
option
An insured may be required to sign which document at policy delivery to ensure
there has not been any adverse medical conditions since the time of the
application? - ANSWER-Good health statement
At policy delivery, a good health statement may need to be signed by the
insured to ensure there has NOT been any adverse medical conditions since the
time of application.
Which report contains information regarding an individual's general reputation
and credit standing? - ANSWER-Consumer Report
Long-term care policies normally cover expenses associated with? - ANSWER-
Nursing homes
When dealing with long-term care coverage, which of the following are
classified as ADLs? - ANSWER-Eating, bathing, dressing, and mobility
Custodial care is normally covered under what? - ANSWER-Long term care
insurance
Medicare Part B excess charges are covered by what? - ANSWER-Medicare
supplemental insurance
Bathing, eating and transferring are all types of what? - ANSWER-Activities of
daily living
,Emergency health care coverage for Medicare enrollees traveling abroad is
what? - ANSWER-Medicare supplement additional benefit
The policy provision that permits an employee to change from group life
coverage to an individual life policy is called the...? - ANSWER-Conversion
Provision
Why do insurers require a minimum number of employees participate in a group
insurance plan? - ANSWER-Minimize adverse selection
What is the insurance contract that identifies individuals by relationship to a
specific organization? - ANSWER-Group Insurance
Group life insurance is typically issued as what? - ANSWER-Level Term
Insurance
Which statement regarding the certificate of insurance is accurate? - ANSWER-
It indicates evidence of an employee's insurance coverage
Any employee insured under a group life insurance plan is normally...? -
ANSWER-Covered with term life insurance
The conversion option for group term insurance may be exercised by an
employee...? - ANSWER-Within 31 days of terminated employment
What are premiums for group credit life insurance based on? - ANSWER-Flat
rate unrelated to the borrower's age
, Is an employer pays for accidental death and dismemberment insurance for its
employees, the amount paid by the employer is generally what? - ANSWER-
Tax deductible to the business
A terminally I'll policyowner decides to sell his life insurance policy at a
discount to help support his family. This sale is called what? - ANSWER-
Viatical Settlement
Kevin has an existing life insurance policy and assigns it to another insurer for a
new contract. How would this transaction be treated for tax purposes? -
ANSWER-As a Section 1035 exchange
What effect does interest income have upon insurance premiums? - ANSWER-
Decreases Premium
How long do most states allow an insurance company to delay the payment of a
cash surrender under the Delayed Payment provision? - ANSWER-6 months
Which tax is normally associated with an individuals death? - ANSWER-
Federal Estate Tax
When there is a name beneficiary on a life insurance policy, the death benefits
are what? - ANSWER-Are paid directly to the beneficiary without the
interference from the insured's creditors
Which of these occupancies could improve an insurers ability to reduce
premiums? - ANSWER-Rate of earnings on investments increase
When premiums are determined, one factor would be the expenses of the...? -
ANSWER-Insurer
