ARIZONA LIFE INSURANCE EXAM 2
COMPREHENSIVE SCRIPT 2026 QUESTIONS
AND ANSWERS GUARANTEED TO PASS
◉ what does a fixed life annuity offer protection against
inflation
premature death
inadequate retirement planning
savings depletion due to longevity. Answer: savings depletion due to
longevity
◉ a trustee-to-trustee transfer of rollover funds in a qualified plan
allows a participant to avoid
mandatory income tax withholding on the amount transferred
paying transfer fees
,paying trustee fees
ever paying income taxes on the distributions. Answer: mandatory
income tax withholding on the amount transferred
◉ what happens when a policy owner borrows against the cash
value of his life insurance policy
the policy proceeds would be reduced by the outstanding loan
balance
no additional loans can be taken out in the future
the amount borrowed is added to the policy owners gross income
for tax purposes
the interest on the loan is tax deductible. Answer: the policy
proceeds would be reduced by the outstanding loan balance
◉ straight whole life insurance can be accurately described in all of
these statements EXCEPT
policy protection normally expires at age 65
,nonforfeiture values are available to the policy owner
provides level protection with level premiums
cash value loans are permitted. Answer: policy protection normally
expires at age 65
◉ which statement regarding the joint and survivor life insurance
settlement options is NOT true
age of beneficiaries plays a factor when determining the payment
amounts
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. Answer: the amount of each installment is larger than the
single life income option
◉ which statement regarding universal life insurance in correct
, cash value accumulations have a guaranteed minimum interest rate
policy owner can change the face amount but not the premium
policy owner can change the premium but not the face amount
partial withdrawals cannot be made from the policy`s cash value.
Answer: cash value accumulations have a guaranteed minimum
interest rate
◉ which of the following statements about universal life insurance
in NOT true
death benefit can be increased
premiums are flexible
universal life insurance normally has a minimum guaranteed cash
value for duration of the policy
COMPREHENSIVE SCRIPT 2026 QUESTIONS
AND ANSWERS GUARANTEED TO PASS
◉ what does a fixed life annuity offer protection against
inflation
premature death
inadequate retirement planning
savings depletion due to longevity. Answer: savings depletion due to
longevity
◉ a trustee-to-trustee transfer of rollover funds in a qualified plan
allows a participant to avoid
mandatory income tax withholding on the amount transferred
paying transfer fees
,paying trustee fees
ever paying income taxes on the distributions. Answer: mandatory
income tax withholding on the amount transferred
◉ what happens when a policy owner borrows against the cash
value of his life insurance policy
the policy proceeds would be reduced by the outstanding loan
balance
no additional loans can be taken out in the future
the amount borrowed is added to the policy owners gross income
for tax purposes
the interest on the loan is tax deductible. Answer: the policy
proceeds would be reduced by the outstanding loan balance
◉ straight whole life insurance can be accurately described in all of
these statements EXCEPT
policy protection normally expires at age 65
,nonforfeiture values are available to the policy owner
provides level protection with level premiums
cash value loans are permitted. Answer: policy protection normally
expires at age 65
◉ which statement regarding the joint and survivor life insurance
settlement options is NOT true
age of beneficiaries plays a factor when determining the payment
amounts
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. Answer: the amount of each installment is larger than the
single life income option
◉ which statement regarding universal life insurance in correct
, cash value accumulations have a guaranteed minimum interest rate
policy owner can change the face amount but not the premium
policy owner can change the premium but not the face amount
partial withdrawals cannot be made from the policy`s cash value.
Answer: cash value accumulations have a guaranteed minimum
interest rate
◉ which of the following statements about universal life insurance
in NOT true
death benefit can be increased
premiums are flexible
universal life insurance normally has a minimum guaranteed cash
value for duration of the policy
