Arizona Life Insurance Exam -
Insurance Regulations
Cease and Desist - answer To stop or discontinue
Coercion - answer Forceful act or threat aimed to influence a person to act against his
or her will
Commission - answer Payment to the agent by the insurance company for placing
insurance, usually a percentage of the policy premium
Director - answer The head of the state Department of Insurance
Exempt - answer Not subject to an obligation
Home State - answer A state in which an insurer is organized and has its main place of
business
Inducement - answerAn offer that attempts to influence the other party
Injunction - answerA court issued order to stop committing an act or violation
Insolvent - answerUnable to meet financial obligations
Procure - answerObtain
Statute - answerA formal written law enacted by legislature, insurance _______s can be
found in the state Insurance Code
License Application Requirements - answer-Must be 18 years old
-File an application with the Director
-Pay the appropriate license fee
-Have not committed any act that is grounds for denial
-Pass each examination which is required for the license being sought
Exam Attempts - answerA candidate for a producer license may have 4
______________ in a 12-month period. After those 4, any ______________ must be
after a year
Documentation - answerCandidates for a license must provide legal _____________
that they may be in the United States by federal law
, Lines of Authority - answerThe __________________ are:
-Life
-Accident and Health or Sickness
-Property
-Casualty
-Variable Life and variable annuity products
-Personal Lines
-Credit
Life - answerCoverage on human lives, including benefits of endowment and annuities,
and may include benefits in the event of death or dismemberment by accident and
benefits for disability income
Accident and Healthy or Sickness - answerCoverage for sickness, bodily injury or
accidental death and may include benefits for disability income
Property - answerCoverage for the direct or consequential loss or damage to property of
every kind
Casualty - answerCoverage against legal liability, including liability for death, injury,
disability or damage to real or personal property
Variable Life and Variable Annuity Products - answerCoverage provided under a
variable life insurance contract or a variable annuity
Personal Lines - answerProperty and casualty insurance coverage that is sold to
individuals and families for noncommercial purposes
Credit - answerLimited line credit insurance
Producer - answerAn insurance ________ is a person who is licensed to sell, solicit or
negotiate insurance (must have a license)
Non-resident Producer - answerA ____________________ may be licensed in AZ
without taking a written exam if the agent is:
-In good standing in his or her current state
-The applicant otherwise complies with all provisions in AZ
-The state in which the person resides accords the same privilege to residents of AZ
-The appropriate official in their home state signs off
Adjuster - answerAnyone who adjusts, investigates or negotiates the settlement of
claims arising under insurance contracts for a fee (must have a license)
Life Settlement Broker - answerPerson who, for compensation, solicits, negotiates, or
offers to negotiate a life settlement contract. They represent only the policyowners, and
Insurance Regulations
Cease and Desist - answer To stop or discontinue
Coercion - answer Forceful act or threat aimed to influence a person to act against his
or her will
Commission - answer Payment to the agent by the insurance company for placing
insurance, usually a percentage of the policy premium
Director - answer The head of the state Department of Insurance
Exempt - answer Not subject to an obligation
Home State - answer A state in which an insurer is organized and has its main place of
business
Inducement - answerAn offer that attempts to influence the other party
Injunction - answerA court issued order to stop committing an act or violation
Insolvent - answerUnable to meet financial obligations
Procure - answerObtain
Statute - answerA formal written law enacted by legislature, insurance _______s can be
found in the state Insurance Code
License Application Requirements - answer-Must be 18 years old
-File an application with the Director
-Pay the appropriate license fee
-Have not committed any act that is grounds for denial
-Pass each examination which is required for the license being sought
Exam Attempts - answerA candidate for a producer license may have 4
______________ in a 12-month period. After those 4, any ______________ must be
after a year
Documentation - answerCandidates for a license must provide legal _____________
that they may be in the United States by federal law
, Lines of Authority - answerThe __________________ are:
-Life
-Accident and Health or Sickness
-Property
-Casualty
-Variable Life and variable annuity products
-Personal Lines
-Credit
Life - answerCoverage on human lives, including benefits of endowment and annuities,
and may include benefits in the event of death or dismemberment by accident and
benefits for disability income
Accident and Healthy or Sickness - answerCoverage for sickness, bodily injury or
accidental death and may include benefits for disability income
Property - answerCoverage for the direct or consequential loss or damage to property of
every kind
Casualty - answerCoverage against legal liability, including liability for death, injury,
disability or damage to real or personal property
Variable Life and Variable Annuity Products - answerCoverage provided under a
variable life insurance contract or a variable annuity
Personal Lines - answerProperty and casualty insurance coverage that is sold to
individuals and families for noncommercial purposes
Credit - answerLimited line credit insurance
Producer - answerAn insurance ________ is a person who is licensed to sell, solicit or
negotiate insurance (must have a license)
Non-resident Producer - answerA ____________________ may be licensed in AZ
without taking a written exam if the agent is:
-In good standing in his or her current state
-The applicant otherwise complies with all provisions in AZ
-The state in which the person resides accords the same privilege to residents of AZ
-The appropriate official in their home state signs off
Adjuster - answerAnyone who adjusts, investigates or negotiates the settlement of
claims arising under insurance contracts for a fee (must have a license)
Life Settlement Broker - answerPerson who, for compensation, solicits, negotiates, or
offers to negotiate a life settlement contract. They represent only the policyowners, and
