Arizona Life Insurance Only State
Exam Simulator
Regulations for variable insurance contracts are set by all of the following EXCEPT
Securities and Exchange Commission
Department of Insurance
State securities authorities
State attorney general's office - answerState attorney general's office
Which of the following is associated with an immediate annuity?
Tax-free benefit payments
Installment premium payments
Lack of an accumulation period
Lump-sum benefit - answerLack of an accumulation period
Which of these factors does NOT influence an individual's need for life insurance?
Lifestyle of the applicant
Number of dependents
Future educational costs of the dependents
Self-maintenance expenses - answerSelf-maintenance expenses
A contract is considered void in all of the following situations EXCEPT
When one party is a minor
When consideration is unequal
When agreement cannot be reached between parties - answerWhen consideration is
unequal
When the disclosure of an insured's nonpublic information is involved, what is the
insurer obligated to do?
Insurer is not obligated to take any action
Give notice, explain, and allow opting out
Provide the proper NAIC paperwork - answerGive notice, explain, and allow opting out
When a policy loan is requested by a policyowner and it requires the consent of the
beneficiary, what kind of beneficiary designation is this?
Collateral beneficiary
, Revocable beneficiary
Irrevocable beneficiary - answerIrrevocable beneficiary
Which of the following could be a future use of the cash value that builds in a recently-
purchased whole life insurance policy?
Convert the cash value to a paid-up term policy
Increases the policy's face amount
Provide supplemental income in 35 years - answerProvide supplemental income in 35
years
Which statement regarding the joint and survivor life insurance settlement option is NOT
true?
Income continues until the last beneficiary dies
Two or more beneficiaries can be paid
The amount of each installment is larger than the single life income option - answerThe
amount of each installment is larger than the single life income option
A producer must maintain customer records for how many years following the
completion date of the insurance transaction?
1
2
3 - answer3
An insurance company can be liable for a producer's unauthorized acts
only when a felony is involved
when the agency contract is unclear concerning the authority given
at anytime - answerwhen the agency contract is unclear concerning the authority given
Which of these may NOT be deducted from premium payments or the cash value of a
variable life insurance policy?
Federal premium taxes
Investment management fees
Mortality costs - answerFederal premium taxes
John has a criminal record in which he was convicted of a felony that involved
dishonesty. Under Federal law, how would John be able to engage in insurance
transactions?
Paying a fine of up to $50,000
Given written consent by the state insurance regulatory agency
Exam Simulator
Regulations for variable insurance contracts are set by all of the following EXCEPT
Securities and Exchange Commission
Department of Insurance
State securities authorities
State attorney general's office - answerState attorney general's office
Which of the following is associated with an immediate annuity?
Tax-free benefit payments
Installment premium payments
Lack of an accumulation period
Lump-sum benefit - answerLack of an accumulation period
Which of these factors does NOT influence an individual's need for life insurance?
Lifestyle of the applicant
Number of dependents
Future educational costs of the dependents
Self-maintenance expenses - answerSelf-maintenance expenses
A contract is considered void in all of the following situations EXCEPT
When one party is a minor
When consideration is unequal
When agreement cannot be reached between parties - answerWhen consideration is
unequal
When the disclosure of an insured's nonpublic information is involved, what is the
insurer obligated to do?
Insurer is not obligated to take any action
Give notice, explain, and allow opting out
Provide the proper NAIC paperwork - answerGive notice, explain, and allow opting out
When a policy loan is requested by a policyowner and it requires the consent of the
beneficiary, what kind of beneficiary designation is this?
Collateral beneficiary
, Revocable beneficiary
Irrevocable beneficiary - answerIrrevocable beneficiary
Which of the following could be a future use of the cash value that builds in a recently-
purchased whole life insurance policy?
Convert the cash value to a paid-up term policy
Increases the policy's face amount
Provide supplemental income in 35 years - answerProvide supplemental income in 35
years
Which statement regarding the joint and survivor life insurance settlement option is NOT
true?
Income continues until the last beneficiary dies
Two or more beneficiaries can be paid
The amount of each installment is larger than the single life income option - answerThe
amount of each installment is larger than the single life income option
A producer must maintain customer records for how many years following the
completion date of the insurance transaction?
1
2
3 - answer3
An insurance company can be liable for a producer's unauthorized acts
only when a felony is involved
when the agency contract is unclear concerning the authority given
at anytime - answerwhen the agency contract is unclear concerning the authority given
Which of these may NOT be deducted from premium payments or the cash value of a
variable life insurance policy?
Federal premium taxes
Investment management fees
Mortality costs - answerFederal premium taxes
John has a criminal record in which he was convicted of a felony that involved
dishonesty. Under Federal law, how would John be able to engage in insurance
transactions?
Paying a fine of up to $50,000
Given written consent by the state insurance regulatory agency
