ARIZONA LIFE INSURANCE MAIN EXAMINATION 2026
QUESTIONS AND SOLUTIONS RATED A+
✔✔Using a class designation for beneficiaries means
1
Naming beneficiaries as a group.
2
Naming each beneficiary by name.
3
Not naming beneficiaries.
4
Naming an estate as the beneficiary. - ✔✔Naming beneficiaries as a group
✔✔Which of the following is a feature of a variable annuity?
1
Interest rate is guaranteed.
2
Benefit payment amounts are not guaranteed.
3
Securities license is not required.
4
Payments into the annuity are kept in the company's general account. - ✔✔Benefit
payment amounts are not guaranteed.
✔✔All of the following are Nonforfeiture options EXCEPT
1
Cash surrender
2
Interest only
3
Extended term
4
Reduced paid-up - ✔✔interest only
✔✔An employee is joining a group insurance plan. In order to avoid having to prove
insurability, what must the employee do?
1
Sign a statement of continued good health
2
Join during the open enrollment period
3
Provide medical records to the insurer
4
Nothing: proof of insurability is never required in group policies - ✔✔Join during the
open enrollment period
, ✔✔Which of the following statements concerning buy-sell agreements is true?
1
Buy-sell agreements are normally funded with a life insurance policy.
2
Benefits received are considered income taxable.
3
Premiums paid are deductible as a business expense.
4
Buy-sell agreements pay in the event of a medical emergency. - ✔✔Buy-sell
agreements are normally funded with a life insurance policy.
✔✔Annually renewable term policies provide a level death benefit for a premium that
1
Remains level.
2
Increases annually.
3
Decreases annually.
4
Fluctuates. - ✔✔Increases annually
✔✔A father owns a life insurance policy on his 15-year-old daughter. The policy
contains the optional Payor Benefit rider. If the father becomes disabled, what will
happen to the life insurance premiums?
1
The insured will have to pay premiums for 6 months. If at the end of this period the
father is still disabled, the insured will be refunded the premiums.
2
The premiums will become tax deductible until the insured's 18th birthday.
3
The insured's premiums will be waived until she is 21.
4
Since it is the policyowner, and not the insured, who has become disabled, the life
insurance policy will not be affected. - ✔✔The insured's premiums will be waived until
she is 21.
✔✔Which law is the foundation of the statistical prediction of loss upon which rates for
insurance are calculated?
1
Law of large numbers
2
Law of masses
3
Law of averages
QUESTIONS AND SOLUTIONS RATED A+
✔✔Using a class designation for beneficiaries means
1
Naming beneficiaries as a group.
2
Naming each beneficiary by name.
3
Not naming beneficiaries.
4
Naming an estate as the beneficiary. - ✔✔Naming beneficiaries as a group
✔✔Which of the following is a feature of a variable annuity?
1
Interest rate is guaranteed.
2
Benefit payment amounts are not guaranteed.
3
Securities license is not required.
4
Payments into the annuity are kept in the company's general account. - ✔✔Benefit
payment amounts are not guaranteed.
✔✔All of the following are Nonforfeiture options EXCEPT
1
Cash surrender
2
Interest only
3
Extended term
4
Reduced paid-up - ✔✔interest only
✔✔An employee is joining a group insurance plan. In order to avoid having to prove
insurability, what must the employee do?
1
Sign a statement of continued good health
2
Join during the open enrollment period
3
Provide medical records to the insurer
4
Nothing: proof of insurability is never required in group policies - ✔✔Join during the
open enrollment period
, ✔✔Which of the following statements concerning buy-sell agreements is true?
1
Buy-sell agreements are normally funded with a life insurance policy.
2
Benefits received are considered income taxable.
3
Premiums paid are deductible as a business expense.
4
Buy-sell agreements pay in the event of a medical emergency. - ✔✔Buy-sell
agreements are normally funded with a life insurance policy.
✔✔Annually renewable term policies provide a level death benefit for a premium that
1
Remains level.
2
Increases annually.
3
Decreases annually.
4
Fluctuates. - ✔✔Increases annually
✔✔A father owns a life insurance policy on his 15-year-old daughter. The policy
contains the optional Payor Benefit rider. If the father becomes disabled, what will
happen to the life insurance premiums?
1
The insured will have to pay premiums for 6 months. If at the end of this period the
father is still disabled, the insured will be refunded the premiums.
2
The premiums will become tax deductible until the insured's 18th birthday.
3
The insured's premiums will be waived until she is 21.
4
Since it is the policyowner, and not the insured, who has become disabled, the life
insurance policy will not be affected. - ✔✔The insured's premiums will be waived until
she is 21.
✔✔Which law is the foundation of the statistical prediction of loss upon which rates for
insurance are calculated?
1
Law of large numbers
2
Law of masses
3
Law of averages
