ARIZONA LIFE INSURANCE EXAM 4 2026 LIFE
INSURANCE LICENSING TEST PAPER
QUESTIONS AND SOLUTIONS GRADED A+
◉ When there is a named beneficiary on a life insurance policy, the
death benefits
1. are directed to a trustee if the insured has any outstanding debts
2. are paid directly to the insured`s creditors, with any remaining
balance forwarded to the beneficiary
3. are paid directly to the beneficiary, minus any debt claims by the
insured`s creditors
4. are paid directly to the beneficiary without interference from the
insured`s creditors. Answer: are paid directly to the beneficiary
without interference from the insured`s creditors
◉ What determines how much an annuitant is paid for a variable
annuity
,1. varies according to how many outstanding annuitant is paid for a
variable annuity
2. payments fluctuate as annuitant gets older
3. the market value variations of the securities backing it
4. varies according to the insurers investments in its general
account. Answer: the market value variations of the securities
backing it
◉ a terminated employee has how many days upon termination to
convert group life insurance coverage to an individual policy
10 days
15 days
30 days
31 days. Answer: 31 days
,◉ Rick owns a variable universal life insurance policy and chooses a
variable death benefit option. what will typically happen to the
death benefit as a result of this section
1. remain the same
2 decrease but never increase
3 increase but never decrease
4 fluctuate with changes in the cash amount. Answer: fluctuate with
changes in the cash amount
◉ the policy provision that permits an employee to change from
group life insurance to an individual policy is called
1 assignment provision
2 conversion provision
3 certificate provision
4 modification provision. Answer: conversion provision
, ◉ when the deferred annuity is surrendered, who must sign the
authorization to do so
owner
annuitant and beneficiary
annuitant
all parties involved. Answer: owner
◉ Which of the following is NOT a valid contract exchange?
1. an annuity exchanged for a life insurance policy
2 an annuity exchanged for another annuity
3 a life insurance policy exchanged for another life insurance policy
4 a life insurance policy exchanged for another annuity. Answer: an
annuity exchanged for a life insurance policy
INSURANCE LICENSING TEST PAPER
QUESTIONS AND SOLUTIONS GRADED A+
◉ When there is a named beneficiary on a life insurance policy, the
death benefits
1. are directed to a trustee if the insured has any outstanding debts
2. are paid directly to the insured`s creditors, with any remaining
balance forwarded to the beneficiary
3. are paid directly to the beneficiary, minus any debt claims by the
insured`s creditors
4. are paid directly to the beneficiary without interference from the
insured`s creditors. Answer: are paid directly to the beneficiary
without interference from the insured`s creditors
◉ What determines how much an annuitant is paid for a variable
annuity
,1. varies according to how many outstanding annuitant is paid for a
variable annuity
2. payments fluctuate as annuitant gets older
3. the market value variations of the securities backing it
4. varies according to the insurers investments in its general
account. Answer: the market value variations of the securities
backing it
◉ a terminated employee has how many days upon termination to
convert group life insurance coverage to an individual policy
10 days
15 days
30 days
31 days. Answer: 31 days
,◉ Rick owns a variable universal life insurance policy and chooses a
variable death benefit option. what will typically happen to the
death benefit as a result of this section
1. remain the same
2 decrease but never increase
3 increase but never decrease
4 fluctuate with changes in the cash amount. Answer: fluctuate with
changes in the cash amount
◉ the policy provision that permits an employee to change from
group life insurance to an individual policy is called
1 assignment provision
2 conversion provision
3 certificate provision
4 modification provision. Answer: conversion provision
, ◉ when the deferred annuity is surrendered, who must sign the
authorization to do so
owner
annuitant and beneficiary
annuitant
all parties involved. Answer: owner
◉ Which of the following is NOT a valid contract exchange?
1. an annuity exchanged for a life insurance policy
2 an annuity exchanged for another annuity
3 a life insurance policy exchanged for another life insurance policy
4 a life insurance policy exchanged for another annuity. Answer: an
annuity exchanged for a life insurance policy
