ARIZONA LIFE INSURANCE EXAM PRACTICE QUESTIONS AND ANSWERS – ARIZONA
INSURANCE LICENSING PREP 2026 COMPLETE STUDY MATERIAL
1. a whole life policy that provides a choice of dividend options include the
following statement about dividends
they accrue at a guaranteed rate
they are deferred for one year
they are not guaranteed
they are guaranteed after the first year: they are not guaranteed
2. 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: are paid directly to the beneficiary without interference from the insured`s creditors
3. 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: the market
value variations of the securities backing it
, ARIZONA LIFE INSURANCE EXAM PRACTICE QUESTIONS AND ANSWERS – ARIZONA
INSURANCE LICENSING PREP 2026 COMPLETE STUDY MATERIAL
4. 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: 31 days
5. 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: fluctuate with changes in the cash amount
6. 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: conversion provision
7. when the deferred annuity is surrendered, who must sign the authorization
to do so
, ARIZONA LIFE INSURANCE EXAM PRACTICE QUESTIONS AND ANSWERS – ARIZONA
INSURANCE LICENSING PREP 2026 COMPLETE STUDY MATERIAL
owner
annuitant and beneficiary
annuitant
all parties involved: owner
8. 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: an annuity exchanged for a life
insurance policy
9. which of these statements regarding the extended term insurance nonfor-
feiture option in a life policy is accurate
evidence of insurability is required
coverage remains until death of the insured
the premium to purchase the coverage comes from the policy`s cash value
cash value will continue to grow: the premium to purchase the coverage comes from the policy`s
cash value
10. a life insurance policy that includes a return of premium rider will pay the
beneficiary how much upon the insured death
total premiums paid plus the policy face amount
face amount plus interest
, ARIZONA LIFE INSURANCE EXAM PRACTICE QUESTIONS AND ANSWERS – ARIZONA
INSURANCE LICENSING PREP 2026 COMPLETE STUDY MATERIAL
interest acquired plus total premiums paid
face amount minus any outstanding loan balances: total premiums paid plus the policy
face amount
11. which of these is NOT considered the responsibility of a producer during
the underwriting process
collecting additional medical information if needed
promptly sending the completed application to the insurance company
forwarding any material personal observations to the insurer
selecting the final approval date: selecting the final approval date
12. which of the following is NOT guaranteed in a whole life policy
settlement options
nonforfeiture options
dividend scale
policy loan values: dividend scale
13. all of these duties that a producer may be required to perform when
delivering an insurance policy EXCEPT
acquire a statement of good health signature
gather the initial premium
review policy with applicant
leave a conditional receipt with client: leave a conditional receipt with client
INSURANCE LICENSING PREP 2026 COMPLETE STUDY MATERIAL
1. a whole life policy that provides a choice of dividend options include the
following statement about dividends
they accrue at a guaranteed rate
they are deferred for one year
they are not guaranteed
they are guaranteed after the first year: they are not guaranteed
2. 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: are paid directly to the beneficiary without interference from the insured`s creditors
3. 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: the market
value variations of the securities backing it
, ARIZONA LIFE INSURANCE EXAM PRACTICE QUESTIONS AND ANSWERS – ARIZONA
INSURANCE LICENSING PREP 2026 COMPLETE STUDY MATERIAL
4. 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: 31 days
5. 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: fluctuate with changes in the cash amount
6. 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: conversion provision
7. when the deferred annuity is surrendered, who must sign the authorization
to do so
, ARIZONA LIFE INSURANCE EXAM PRACTICE QUESTIONS AND ANSWERS – ARIZONA
INSURANCE LICENSING PREP 2026 COMPLETE STUDY MATERIAL
owner
annuitant and beneficiary
annuitant
all parties involved: owner
8. 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: an annuity exchanged for a life
insurance policy
9. which of these statements regarding the extended term insurance nonfor-
feiture option in a life policy is accurate
evidence of insurability is required
coverage remains until death of the insured
the premium to purchase the coverage comes from the policy`s cash value
cash value will continue to grow: the premium to purchase the coverage comes from the policy`s
cash value
10. a life insurance policy that includes a return of premium rider will pay the
beneficiary how much upon the insured death
total premiums paid plus the policy face amount
face amount plus interest
, ARIZONA LIFE INSURANCE EXAM PRACTICE QUESTIONS AND ANSWERS – ARIZONA
INSURANCE LICENSING PREP 2026 COMPLETE STUDY MATERIAL
interest acquired plus total premiums paid
face amount minus any outstanding loan balances: total premiums paid plus the policy
face amount
11. which of these is NOT considered the responsibility of a producer during
the underwriting process
collecting additional medical information if needed
promptly sending the completed application to the insurance company
forwarding any material personal observations to the insurer
selecting the final approval date: selecting the final approval date
12. which of the following is NOT guaranteed in a whole life policy
settlement options
nonforfeiture options
dividend scale
policy loan values: dividend scale
13. all of these duties that a producer may be required to perform when
delivering an insurance policy EXCEPT
acquire a statement of good health signature
gather the initial premium
review policy with applicant
leave a conditional receipt with client: leave a conditional receipt with client
